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Openwork posts £321k profit as 2Plan losses hit £3.8m

Openwork adviser numbers fall 7 per cent to 2,114 from 2,261.

Restricted network Openwork has reported pre-tax profits of £321,000 for the year ending 31 December 2012 while its IFA arm 2Plan posted a £3.8m loss.

The firms’ accounts show Openwork has turned round a £13.3m loss for 2011 while 2Plan’s losses have fallen further from a loss of £2.6m the previous year.

Openwork paid out £2m in complaints redress during the year, compared to a total payment of £1.8m in the previous year.

The network made a £13.3m loss in 2011, largely due to a £6.1m writedown of company assets and spending around £7m on RDR preparation.

Adviser numbers fell 7 per cent to 2,114 from 2,261 in 2011.

Revenues rose 7 per cent to £180m from £169m the previous year. Net cash flows into Openwork’s Omnis investment proposition, a joint venture with Octopus Investments, fell 16 per cent to £5.6m from £6.7m in the previous year.

Openwork chief executive Mary-Anne MacIntyre says: “This is confirmation that Openwork has posted its first profit. It is also evidence of strong performance of underlying advisers and the changes made to the infrastructure of the business.”

2Plan, which reports separately to Openwork, attributed its losses to investment ahead of the RDR, the conversion of the business from a national into a network and changes to its recruitment structure.

The loss also includes a £1.6m charge made as a result of share options awarded to directors as part of its acquisition by Openwork.

Total 2Plan adviser numbers rose 5 per cent to 271 from 258 the previous year. The firm made £196,000 in provisions over the year.

PMI Independent Financial Advisers director John Stewart says: ”It is good to see a large adviser business posting good figures. It is also possibly evidence to support the view that restricted businesses will find it easier to post profits.”

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