Origen has reported a £3.5m pre-tax loss for 2011 after the advice firm conducted an internal review of its systems and controls.
The 2011 loss represents a significant drop compared with the previous year, when Origen recorded a pre-tax profit of over £1m.
Origen says review costs of £787,000 have been recognised in the 2011 accounts. It says the project will be completed by 31 December 2012, with further costs likely to be recognised in next year’s accounts. The firm also paid out £634,000 in redundancy costs during 2011.
In a statement published in the firm’s 2011 accounts last week, Origen managing director Mike Kirsch says: “During the year, the board of the company instigated a review of the systems and controls environment within Origen and the suitability of regulated advice given to clients, with the aim of identifying any past failings and embedding best practice within the company.
“Costs of £787,000 have been recognised in the 2011 accounts in respect of the exercise. Further costs not recognised in these financial statements may be incurred as the project progresses and the directors adjust the scope of the work in the light of their assessment of the results of the review.
“Work is expected to be completed and all expenditure incurred by 31 December 2012.”
AWD Chase de Vere head of communications Patrick Connolly says: “National IFAs and networks are going through huge transformations and many appear to be struggling to generate profits during this process.
“I hope, for the sake of the clients, these companies are able to start making money in the next few years.”