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David Harrison: PosSol should ‘show a bit of humility’

Harrison-David-True Potential-2013
Harrison: “The current management should show a bit of humility”

Positive Solutions founder David Harrison has hit out at the current management team for criticising the work of their predecessors.  

Harrison launched PosSol in 1997 with staff and management selling a 60 per cent stake to Aegon in 2002 and remainder to the provider in 2005, valuing the business at £163m. Harrison then set up technology firm True Potential with son Daniel and former PosSol chief executive Neil Johnson. 

Intrinsic announced its acquisition of PosSol last week with Aegon take a 7 per cent stake in Intrinsic. PosSol is now reviewing its technology deal with True Potential. 

Following the acquisition, PosSol chief executive Peter Coleman said his team had worked hard to “resurrect the fortunes of Positive Solutions” and produce a “remarkable financial turnaround”. 

Harrison says: “The current management should show a bit of humility and not look to criticise previous senior staff”.

He added: ”I have always felt that the value in PS was with its IFAs, and AEGON clearly felt that as well considering the price they paid for us.  For clarity, the sale was made way back in 2002, with an earn-out over 3 years.  

”In recognition of their value, the money paid over was shared between 800 advisers and staff, not just paid to a management team that had built it from scratch, using their own savings, and paying themselves very frugally to give it a chance to thrive.”

Positive Solutions appointed former Burns Anderson director Coleman as chief executive in February last year following Jim Reeve’s departure. Former Honister chief executive Richard Pearson was appointed chief operations officer last June. 

Following two years of losses, PosSol posted a £2.3m pre-tax profit for 2012, although it reported a number of possible advice liabilities. 

Positive Solutions declined to comment.

Full coverage of PosSol/Intrinsic deal, p16-17

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Comments

There are 9 comments at the moment, we would love to hear your opinion too.

  1. Sorry but where is PosSol criticising former senior management? There has been a remarkable financial turnaround – that’s just stating the facts. What company wouldn’t report on that?

  2. Richard Campbell 20th June 2013 at 11:54 am

    Positive Solutions Conference was this week – amazing atmosphere and a great three days. The Sage was absolutely heaving. On the other hand, I heard TP couldn’t even fill the top bar in the Pitcher & Piano!

  3. PosSol chief executive Peter Coleman said his team had worked hard to “resurrect the fortunes of Positive Solutions” and produce a “remarkable financial turnaround”.
    Agree with Max
    Where is the criticism in that statement?
    Coleman is giving his team the praise they deserve.

  4. David Harrison says what suits David Harrison. Nobody can argue with David’s achievements but Peter Coleman has just stated the facts. The losses can be laid at the door of Mr Harrison and not his successor for the way he went around undermining PosSol after he set up TP.

  5. I cannot remember any of the senior managers crticizing the previous management at the PS Conference that I attended this week.

  6. I think Harrison has got out the wrong side of the bed, that’s all guys. . . . Maybe he just needs a cuddle.

  7. Think there is a bit of posturing going on here.

    PS “remarkable financial turnaround” was achieved by 2 means, increasing their % take from all business significantly in late 2011 and hammering the huge amount of leavers in 2012. Leavers have slowed and profits are not as strong.

    However, they are not hammering DH either, who seems a bit worried about losing PS as a client for TP.

    If anything, they are having a pop at the regime before Coleman who had to transform PS into an RDR proof business at huge cost.

    The fact that PS were worth only 7% of Intrinsic probably shines the light through the “remarkable financial turnaround” at PS …

  8. Andrew Veltman 21st June 2013 at 7:52 pm

    Think what the 7 per cent shows more than anything is that the multi-millionnaire Dave ‘humility’ Harrison and his gang properly tucked up Aegon back in the day. And while they may have ‘shared’ the money I think the multi-millionnaire Dave ‘humility’ Harrison and his gang did a little bit better than most. Nice work.

  9. Nothing wrong with the current PS Management blowing their own trumpet.

    Unfortunately for them, it is only falling on deaf ears!

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