Profits at Paradigm Partners fell by 25 per cent in the run-up to the sale of adviser network Paradigm Financial Advisers to Caerus.
The firm’s results for the year to the end of April 2013, published on Companies House this week, show profits dropped from £2m to £1.5m.
Turnover increased by 11 per cent from £7.7m to £8.6m while administrative expenses rose by 23 per cent from £5.68m to £7m.
Paradigm Financial Advisers made a £1.17m loss in its last financial year before being sold to Caerus in October. As part of the deal, Paradigm wrote off £600,000 in impaired debt.
The firm set aside £496,000 for liabilities at the beginning of the financial year and paid out £213,000. Of this, £184,000 related to a review of Paradigm Financial Advisers’ sales processes.
Paradigm says the amounts were covered by professional indemnity insurance and policy excesses.
A further £130,000 was set aside as at 30 April 2013.