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Perspective defers payouts to acquired firms as Paul Hogarth injects £2m

Consolidator Perspective has been forced to defer payments to some acquired firms with the group’s executive chairman Paul Hogarth putting a £2m cash injection into the business.

Paradigm and Bankhall founder Hogarth has invested £2m of his own money into Perspective over the last 12 months in the form of a loan. Perspective says it may look to secure further private equity investment.

Perspective has also agreed with five advice firms it has acquired to defer the payments owed under the acquisition terms. The company declined to provide details of negotiated terms and declined to name the acquired firms involved. The advice firms will receive interest on the deferred amounts. 

Perspective abandoned plans to raise £28m through a float on the Alternative Investment Market in August. It had planned to use the cash for operating capital, future acquisitions and to service a loan finance facility from Lloyds Bank.

Money Marketing last week revealed that group operations director Peter Craddock and finance director Phil Carr had left the business. Craddock has since joined the FCA’s regulatory decisions committee.

The firm also announced it would no longer be pursuing its previous acquisition strategy which has seen it acquire over 30 firms since launch in 2009. 

Last week Perspective posted an update on Companies House which announced managing director Damian Keeling had stepped down. Perspective says Keeling remains with the business and said the update was an administrative error. 

Perspective executive chairman Paul Hogarth says: “To ensure the continued success of the business over the next five years it was felt a number of changes to future strategy and the senior management team needed to be made. My personal commitment is testament to my belief and support of those changes.”

Philip J Milton & Co. director Philip Milton says: “Were I an acquired firm this would not fill me with a great deal of confidence.”

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There are 2 comments at the moment, we would love to hear your opinion too.

  1. According to this article, Perspective has had to borrow more funds, failed to float and possibly seek further private equity investment in a 12 month period that has seen increased FS production and recurring income boosted by stronger fund values. If I were one of the owners that was waiting on monies promised in return for my business, I’d be very interested in Perspective’s plans for the next 5 years and exactly what trading conditions they are basing their projections on.

  2. Oh dear dear dear 🙁

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