Personal Touch Financial Services’ main shareholder injected £12.6m into the network last year, as PTFS suffered a 65 per cent drop in profit.
Speaking to Money Marketing, PTFS chief executive Max Wright says the £12.6m from Lloyds Banking Group’s private equity arm LDC will be used to invest in technology, particularly its back-office administration system, Toolbox.
Despite the cash injection, the network’s accounts show profits fell 65 per cent from £1.1m in 2011 to £399,431 in 2012, which Wright attributes to preparing for the RDR and the Mortgage Market Review.
Turnover grew from £56.1m to £64.9m over the same period.
Appointed representative numbers fell 21 per cent from 733 at the end of 2011 to 576 a year later, while registered individual numbers fell from 1,492 to 1,161.
PTFS set aside £10.7m during 2012, made up of a £9.5m clawback provision, £630,768 to deal with complaints and £618,688 for lease provisions.
DB Financial owner Doug Bennett, an AR of PTFS, says: “Every network has had a tough time over the past few years so, as a member, the fact it is still in profit is reassuring. The management have streamlined the business and we are seeing a lot of improvement in business quality.”