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UK Wealth Management posts £1.9m loss

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UK Wealth Management has reported a pre-tax loss of £1.9m for 2012 compared with a £145,000 loss in 2011.

The adviser firm attributes the losses to uncertainty around acquisition prospects and increased acquisition risks as a result of the RDR.

It added the RDR had impacted its turnover which fell 5 per cent to £8.8m, down from £9.3m in the previous 12 months.

The highest paid director at the firm was paid £175,000 for the year.

UK Wealth Management chief finance officer Simon Shaw says: “Uncertainty surrounding the impact of the RDR on other firms in the sector made valuing acquisition prospects difficult and significantly increased the downside risk associated with acquisitions. 

“The board is confident of a significant improvement in financial performance in 2013.”

PMI Independent Financial Advisers director John Stewart says: “It is very difficult for acquiring firms to calculate the value of businesses because there is a lot of uncertainty around how long trail will last and that was always the basis for a firm’s value. I think this uncertainy is set to continue for a while because we are still only a few months unto the RDR and we do not know how things will pan out.”

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