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Honister reports £2.2m operating profit

Honister Capital has reported £2.2m in operating profit for the six months to March 31, with more than half coming from its lucrative direct business Willis Owen.

The firm, which comprises Sage Financial Services, Burns-Anderson, Honister Partners and Willis Owen, would not provide pre-tax profit figures but revealed that total revenues across the group were £55.4m for the period.

The advice businesses produced revenues worth £53.9m and made £1m worth of operating profit. Willis Owen produced revenues of £1.5m from which it pocketed £1.2m in profits.

In February, the firm revealed it had made an operating profit of £1.5m between last June and the close of its financial year on September 30, with £1m of its profits coming from the advice businesses and £500,000 from Willis Owen.

Honister, which was formed last June after Money Portal was placed in administration with debts of over £52m, had a positive cash balance of £12.5m as of March 31, of which £2.9m was regulatory capital.

Chief executive Mark Lund says its advisory businesses remain “resilient”, adding that the switch from commission to fees continues at a “manageable” pace.

He says: “This is a very credible performance and one achieved despite the ongoing uncertainty caused by the potential impact of regulatory changes and the changeable economic and political environment. 

“Our advisory business remains resilient in a sector that has seen more than its share of challenges. There are regulatory challenges ahead, including the implementation of the Retail Distribution Review. The switch from commission to fees continues at a pace that is manageable to the business. Our strong capital base allows us to react to these changes and structure the company appropriately, accommodating independent and, if relevant, restricted advisers.

“The performance of Willis Owen is strong. We will continue to ensure that Willis Owen receives the investment it needs to expand and grow.”

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