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PosSol cuts losses to £100k for 2011

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

The Aegon-owned firm set aside a £2.2m complaints provision, up significantly from £638,000 the previous year. Assets held from partners for any potential liabilities jumped from £436,000 to £2.1m.

The salary of the highest paid director at PosSol, who is not named in the accounts, fell from £501,000 in 2010 to £270,000 in 2011.

A statement in the accounts says: “The improvement in results from a loss before taxation of £1.6m to a loss before tax of £100,000 was 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.

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

PosSol has been hit by a number of senior departures in recent months including the departure of risk and compliance director James McCourt.

This month, Aegon issued a media statement reaffirming its support for PosSol, which has come under fire in recent weeks from advisers over its stance on exit fees.

Pilot Financial Planning director Ian Thomas says: “It makes sense for the larger firms to ensure their financial stability before the RDR because they are going to be under real strain come next year when their revenue streams will have to change.”

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