Foster Denovo has recorded a pre-tax profit of £246,000 for the year to 31 December 2013, down from £1.3m the previous year.
Turnover increased by 15 per cent year-on-year, from £21.7m to £25m, while the cost of sales rose 20 per cent, from £11m to £13.2m.
Administrative expenses also increased 23 per cent, from £9.4m to £11.6m. Total provision for liabilities and charges stands at £3.7m, up from £3.3m. It includes £2m for complaints provison, unchanged year on year, which the firm expects to recover from PI insurance with excesses being recovered from advisers.
The firm says its events arm will close in 2014 after 2013 saw profits fall as it moved to “the provision of management information to, rather than the raising of sponsorship from, providers of financial products”.
Post-RDR, the FCA has sought to clamp-down on provider payments to advisers for marketing and events under its inducements and conflits of interests paper.
The business says it spent £295,000 on costs relating to transitioning Sequel Investments to a new OEIC structure. The firm acquired the Host Capital Caerus investment OEIC from Caerus Portfolio Management in October 2013, adding the assets to investment subsidiary Sequel.
Chief executive Roger Brosch says: “I am pleased to report that underlying trading remains strong. The industry has gone through real transition, and we have invested heavily during this period. We look forward to continuing to progress the business during 2014 and beyond.”