James Hay saw profits fall 25 per cent in 2013 from £9m to £6.7m, due to lost revenue on maturing Sipps and £3.1m in IT costs associated with product development.
James Hay parent IFG Group posted the results this morning.
The results say: “Revenue was marginally down on the previous year as the loss of revenue on maturing/expiring SIPPs continued to outpace the timing of the revenue benefit of new business.”
In January 2013 the company launched its platform Sipp proposition, adding Isa and general investment options in March this year.
It says total new Sipp sales of 5,071 exceeded the target of 4,000 a year set when the business was acquired by IFG. The 2012 total was 2,469.
Total assets under administration increased to £15.3bn from £14bn in 2012.
James Hay chief executive Alastair Conway says: “The Modular iSipp outstripped previous years’ Sipp sales and significantly contributed to total gross inflows for the year of £1.2bn, a 63 per cent increase on 2012.
“Adjusted operating profit was impacted by continued investment in the business as we developed the necessary improvements to our infrastructure to support our growth plans.”