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Financial Limited seeks investment after posting £105k loss

Financial Limited made a pre-tax loss of £105,502 in 2013/14 and says a recruitment ban imposed by the FCA casts “material uncertainty” over the network’s future, its latest accounts reveal.

The accounts show the network made a loss of £105,502 for the year ended 31 March 2014, compared to breaking even the previous year.

In July 2014, the FCA banned Financial Limited from recruiting new advisers for four and a half months, after finding “systemic weaknesses” in the firm’s systems and controls.

The regulator said it would have imposed a £12.6m fine on the network were it not for its financial position.

Financial Limited says it is in discussions with a third party over a potential investment into the business.

It says in the accounts: “The directors have considered the company’s cashflow requirements during the year and the potential impact of the recent recruitment ban imposed by the FCA.

“The directors are in discussion with a third party over a potential investment into the group. The directors believe that the additional investment will enable the company and group to meet their commercial and regulatory capital requirements for the foreseeable future.

“However, the directors have concluded that the above factors do constitute a material uncertainty that casts doubt upon the company’s ability to continue as a going concern.

“Notwithstanding these matters, the directors have a reasonable expectation that the company shall be able to continue in operational existence for the foreseeable future.”

Financial Limited set aside £2.8m for complaints provision in 2013/14, down from £3.3m a year ago.

The average number of employees in the year to 31 March 2014 was 41, down from 45 the previous year. Total employee expenses was £1.5m, down £1.7m in 2013.


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  1. Employees are down but what about the number of advisers? It would have been nice for the article to have covered that as well

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