Paradigm Partners has reported pre-tax profits of £2m for the year ending 30 April, but had to set aside almost £500,000 for redress for advice network Paradigm Financial Advisers.
The group’s accounts, published on Saturday, show Paradigm Partners’ pre-tax profits were up slightly from £1.9m in 2011.
Turnover for the group increased 22 per cent to £7.7m, up from £6m the previous year.
Paradigm Financial Advisers, which has now been acquired by Keith Carby’s Caerus Capital Group, reported a pre-tax loss of £100,000 compared to a profit of £336,000 in 2011.
The loss includes a £164,000 provision for known complaints, alongside a further £332,000 provision by Paradigm Partners for possible future claims.
The firm’s accounts reveal the provision has arisen following FSA inspections of sample case reviews.
The liability for complaints against PFA, which has 370 advisers across 110 firms, remains with Paradigm Partners.
The group’s accounts include Paradigm Pensions, Paradigm Mortgages, corporate wrap Amber and recently-launched investment business Tatton.
Paradigm Pensions, which is headed up by former Scottish Life head of pensions strategy Steve Bee, reported a net loss of £305,329 in 2012. This compares to a net loss of £613,558 in the year to 30 April 2011.
Paradigm Partners director Anthony Morrow says: “The members consider the results for the period to be particularly pleasing against the backdrop of continued weak economic recovery and turbulent markets with strong underlying growth in the core Paradigm Partners business.”