Sandringham Financial Partners took on £1 million of additional debt in 2016 to fund its growth plans, its accounts show.
The size of the company’s liabilities are revealed in its full year results for 2016, which have just been filed with Companies House.
In total, the Yorkshire-based network had net liabilities of £5,208,678 – an increase on the £4,193,144 the previous year.
However, it also increased staff numbers by 26 to 30 and its net current assets stood at £564,857 – an increase of £264,384 on the previous year.
The liabilities increased on the back additional debt the company has taken on. The results show that Sandringham received loans from a shareholder in its parent company, as well as a close family member of this shareholder.
The present value of Sandringham’s loans at the end of the year was £4,961,975. Notional interest of £220,052 was charged on this amount.
The results make clear though that the network has the continued support of its backers, and that these loans did not have to be repaid in the near future.
The financial statement say: “The financial backer has confirmed their continuing support to the company, in particular there is a formal agreement in place that the amounts owed from the company are not due to be repaid until five years from the date of the loans has passed.”
Chief executive Tim Sargrisson said in June last year that the network was on track to meet its target for adviser recruitment. At the time Sargrisson said Sandringham has “just shy of 150 advisers” and expected to have 160 in place by the end of the year. It currently has around 170 advisers and hopes to secure 250 in total.
Sandringham was launched in 2012 with financial backing from Ken Davy, chairman of SimplyBiz.
Sandringham offers a restricted advice model. It uses the end-to-end proposition powered by Verbatim Asset Management, the investment arm of SimplyBiz – and asks all advisers to use the same systems and processes as part of its de-risking process.