National IFA Chase de Vere has a posted a fall in profits of 1.6 per cent for the year ending 31 December 2017.
According to its results statement, pre-tax profits fell from £5.77m in 2016 to £5.68m.
The firm says the drop in profits was due to costs associated with the purchase of Medical Money Management in October together with moving to a different back office system.
This is the company’s fourth consecutive year of profitability.
Gross advice revenue increased from £51.8m to £57.4m and average fee income per adviser rose from £245,000 to £286,000 over the period.
During the year, Chase de Vere spent £874,000 of its provision for settling claims from clients. The results statement says £38,000 of the brought-forward provision didn’t need to be used and the charge to the income statement for the year was £100,000.
Chase de Vere chief executive Stephen Kavanagh says the purchase of Medical Money Management and the upgrading of its back office systems should help the firm to “deliver significantly increased profitability in the future”.
He says: “We have increased our fee income revenue and the productivity of our advisers and we have many opportunities for further growth in 2018 and beyond. This includes the development of existing and new affinity relationships and an increased focus on the advice services we provide for the medical profession.
“We have achieved this success while remaining committed to independence. In an environment where many other larger advice firms have chosen to give restricted advice, we remain committed to providing independent financial advice and putting our clients’ interests at the forefront of everything we do.”