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James Hay posts 25 per cent profit drop despite sales boost

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.”



Chris Daems: Mind the auto-enrolment gap

There are a bunch of ‘gaps’ which need to be overcome when it comes to helping employers do what they need to from an automatic enrolment perspective. First, there is the knowledge gap.  The gap between what employers (and some professionals) should know and what they actually know about auto-enrolment and especially how it works […]

Tom Baigrie: ABI and providers need to get their house in order

Attending a conference last week, I listened to provider CEOs say one after another that unless “we get our house in order” the FCA would soon  adopt a tougher approach to its regulation of protection and I was struck by the contrast between the public words and points many of the same tribe recently made […]


Platforms struggle to meet Budget drawdown reforms

A raft of platforms will struggle to be ready in time to offer savers access to the new higher maximum income withdrawal limit set out in the Budget.   In his Budget speech last week, Chancellor George Osborne revealed explosive reforms to pension flexibility which will see people over the age of 55 able to […]

Protection Brief: CI Expert: Rebroking is not churning

Many compliance officers, indeed many advisers, consider rebroking a critical-illness plan to be dangerous, perhaps even tantamount to churning. This view frequently colours their thinking and often results in older plans being retained even though a higher level of protection could be obtained using currently available plans. It can be argued that advisers who fail […]

Value remains within European equities

By Rob Burnett, Neptune European Opportunities Fund

In recent months, investors have become more pessimistic about both the European and the US economic outlook and yet stockmarkets have pushed on to new highs. Some would argue that this is a worrying divergence. We would take the opposite view. This appears to be classic bull market behaviour. A wall of worry has been rebuilt, and stockmarket resilience should be taken as a sign of strength. The market is discounting an improving economic outlook ahead, particularly in the south of Europe.


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