Lifesearch has cut its losses to £296,000 as it increased the amount it sets aside for possible clawbacks.
In the 12 months to 31 August, the adviser firm improved its position from the £2.1m loss it incurred the previous year.
Turnover in 2012 reached £16m, up 33.3 per cent on £12m in 2011. It set aside £3.9m for potential clawbacks, compared to £2.2m the previous year as it took a “more cautious view” due to business growth.
Staff costs, including salaries, social security and pension costs, increased 15.5 per cent from £5.8m in 2011 to £6.7m in 2012.
The firm had 218 employees at 31 August, including 98 sales advisers, up from a total of 191 and 81 advisers a year earlier.
Highclere Financial Services partner Alan Lakey says: “Lifesearch’s cautious approach to clawback could be because it had a higher lapse rate than normal due to the gender directive and the activity it did in the run up to that. People were rebroking a lot of policies.”