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PosSol cuts losses to £100k for 2011

Positive Solutions has posted pre-tax losses of £106,000 for 2011, a large reduction on the £1.6m loss reported for 2010.

The Aegon-owned firm also made £2.2m of complaints provision, compared to £638,000 the previous year. Assets held from partners for any potential liability caused increased from £436,000 to £2.1m.

The salary of the highest paid director at PosSol fell from £501,000 in 2010 to £270,000 in 2011.

The firm attributes the reduction in losses to a “profit transformation plan”.

A statement in PosSol’s accounts says: “The improvement in results from a loss before taxation of £1.6m to a loss before tax of £100,000 was as a direct result of the implementation of a profit transformation plan.

“The plan was designed to increase income and reduce costs, whilst remaining compliant and ensuring that our partners continue to receive high quality service.”

The accounts confirm a company share incentive scheme which vested on 30 June 2011 did not deliver any shares to partners or staff because the company did not float or reach a value over £200m.

Former PosSol chief executive Jim Reeve left the firm in February and was replaced by former Burns-Anderson director Peter Coleman (pictured).

The firm has also been hit by a number of senior departures in recent months.

Earlier this month, parent company Aegon issued a media statement reaffirming its support for PosSol after the firm had come under fire from advisers over its stance on exit fees.

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Comments

There are 8 comments at the moment, we would love to hear your opinion too.

  1. Impressive turnaround

  2. Really! is this impressive?

    “The plan was designed to increase income and reduce costs, whilst remaining compliant and ensuring that our partners continue to receive high quality service.”

    I don’t think the accounts will show the plan is working, costs have been reduced, any fool can do this, but when peoples jobs go what effect will that have on the service, they must have been doing something! The T/O is continuing to decrease in line with good advisers leaving and recruitment could not be worse!

    Clever accounting won’t turn this business around.

  3. Feargal, I don’t get what you are saying. They’ve reduced their losses, which is what any good business should do and it looks like the business is being turned around.

    I’m sorry if you have been personally affected by this, however your comments are a bit of an unnecessary snipe!

  4. I think it’s massively impressive when you consider Origen lost £3.5m and Openwork lost £13m!!!!

    My understanding is that they have actually created new job roles to enhance customer service and made cuts in other areas.

    I think Coleman knows what he is doing.

  5. Not positive anymore 12th October 2012 at 4:03 pm

    Jim Reeve was in charge in 2011 – not Coleman. Surely the well dones should be reserved for him and we can judge Pete when he submits accounts for 2012?

  6. At what price. Massive job losses, massive exits. Any fool can do this.

  7. More Positive than Not positive anymore 12th October 2012 at 4:58 pm

    So will you become more positive about Pete if they show further improvement?

  8. Coleman was Commercial Director in 2011 and largely responsible for the turnaround – Jim Reeve obviously knew what he was doing when he brought Coleman on board. In 2012, Coleman has stated PS have made month-on-month profits.

    I think PS will definitely be an RDR Survivor.

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