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Falcon raises £3m in flotation on Aim

Falcon Group has listed on Aim through holding company Sumus, raising £3m through an issue of new shares.

The IFA, network and service provider has 120 RIs and group chief executive Allan Rosengren says he hopes this total will rise to around 160 advisers by September.

The business, founded in 1983 by Rosengren and operations director Julian Telling, had a turnover of £8.1m last year and a profit of £453,000,

The directors believe that regulatory changes, including depolarisation and mortgage and general insurance regulation, mean that sector consolidation will accelerate.

Last September, the group set up Financial Synergies, an IFA services provider subsidiary which is owned 70 per cent by Sumus and 30 per cent by Alchemy Business Partners. The new venture has signed up its first three member firms which together have a combined annual turnover of more than £4m.

Rosengren says: “Over the last few years, it has been our aim to take the company public. The money that we have raised will enable us to accelerate our growth record in what is still a highly fragmented sector. Falcon is making it work. By effectively risk-managing 100 per cent of our business, which we have been doing now for about 12 years, we can focus on the future rather than on historic issues and liabilities. We are focused very much on the quality of the operation that we run and on the people within.”

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