Foster Denovo profits hit £1.2m

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Foster Denovo Group has recorded post-tax profits of £1.2m for the year 2014, led by its adviser business.

The result represents a marked improvement from 2013, when the group recorded profits of £137,000.

The group profits come off the back of a 5.7 per cent increase in revenues, from £24.97m to £26.4m, while operating expenses fell from £11.6m from £11.2m.

Foster Denovo chief executive Roger Brosch says: “I am pleased with 2014’s results and the progress that has been made following the transition to the post-RDR world. They demonstrate the attractiveness of our client propositions and the quality of our staff and infrastructure.

“These are exciting times for the sector and we have committed to invest heavily in a number of innovative initiatives this year that will enable further organic and acquisitive growth in 2016 and beyond”.

The group’s adviser business contributed £1.3m to the total profits, helping to mitigate losses at auto-enrolment provider Enrolsme and Foster Denovo Events Management, which closed last year.

The firm says non-employee benefits advisers saw productivity increase 11.63 per cent from £161,000 to £179,000, following changes to remuneration models imposed by the Department for Work and Pensions after the RDR.

Fund manager Sequel Investments recorded a profit of £533,597.

Funds under management increased from £115m to £138m, with funds advised upon in pension funds increasing rom £58m to £82m.

Foster Denovo says Sequel will launch new income funds this year in response to pensions freedom, and adds: “The group sees the demand for financial advice increasing, whether through legislative change such ass that leading to pensions freedom and choice or through employers seeking to provide financial education and access to advice in the workplace”.