PTFS reports £480k profit as AR numbers fall

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Personal Touch Financial Services has reported a pre-tax profit of £483,176 for 2014, level with the previous year.

In its latest accounts, the network reported a turnover of £46.6m, down by 9 per cent from £51m in 2013.

The number of appointed representatives fell by 6 per cent, from 329 at the end of 2013 to 309 at the end of 2014.

The number of registered individuals dropped more sharply, by 12 per cent.

PTFS had 593 RIs at the end of 2014, down from 673 the previous year.

PTFS sales and marketing director David Carrington says the network has had a risk management strategy to reduce its number of ARs over the last few years.

But he says: “The volume of leavers has slowed down and we are now seeing a natural attrition rate for a network, with some ARs retiring or moving to another network. Our plan is to now balance the leavers and joiners and keep the numbers level.”

The network’s complaints provision stood at £362,699 at the end of 2014, having used £256,738 to pay redress over the year.

In 2013, the firm used £107,000 of its complaints provision and set aside a total of £677,188 at the end of the year.

Carrington says the complaints are for a range of issues, and largely relate to mortgage and protection business rather than investments.

In November PTFS announced a new fee structure, introduced in February, based on quality of business. It says that 80 per cent of its members are paying reduced fees as a result.

PTFS chief executive Jane Cross says: “These results continue to show the effectiveness of our quality-based strategy, achieving a safe level of profit from a company with robust financial strength.

“Our approach to safe profit has meant that we can support our members more. It has meant that we are able to continue to subsidise the cost of professional indemnity insurance and reduce membership costs.”