James Hay’s adjusted pre-tax profits dipped by almost a third last year as a multi-million platform investment and reduced interest income weighed on the firm’s bottom line.
The preliminary results for IFG Group, the parent company of James Hay and advice firm Saunderson House, reveal year-on-year profits slumped 27 per cent at the platform, from almost £8m to £5.8m. Adjusted profits at Saunderson House, meanwhile, rose 13 per cent, from £4.76m to £5.37m. A James Hay spokeswoman says the adjusated figure excludes “some group costs”.
The non-adjusted pre-tax profit figure for IFG as a whole fell from £5.4m to £4.8m.
James Hay says it invested £4m in its platform proposition in 2014, while profits were also hit by a £1m drop in interest income as a result of “regulatory changes”.
Revenues at James Hay were flat at £37m, while Sipp sales increased from 5,071 to 6,303. This includes 878 new Sipps following the acquisition of Capita’s Sipp book in May.
Saunderson House added 247 new clients during the year, compared to 154 in 2013, with assets under advice rising 16 per cent to £3.7bn.
IFG Group chief executive Paul McNamara says: “2014 marked a fundamental transformation of IFG Group as we exited non-core businesses and continued to invest for growth.
“We are strongly positioned in attractive markets with a strong and liquid balance sheet to support further growth and investment.”