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Start-up costs see Paradigm Pensions report first year loss

Paradigm Pensions has recorded a net loss of over £600,000 during its first year of trading.

Accounts filed with Companies House reveal Paradigm Pensions made a net loss of £613,558 in the year to 30 April 2011.

Operating losses for the year were £247,615, while a company director was paid £365,943.

Money Marketing understands this figure comprises the salary and signing-on fee paid to Steve Bee, who left Scottish Life to join the firm in January 2010.

Bee has spearheaded the development of JargonFreeBenefits, the compliance and flexible benefits proposition launched by Paradigm in September last year.

Paradigm Partners director Anthony Morrow says: “The investment we have made in setting up and building Paradigm Pensions is part of our ongoing commitment to delivering the best products and services to advisers and their clients.

“With Steve Bee at the helm and over 100 intermediary firms already signed up as licensees, the long-term success of the business is not in doubt.

“The spread of distribution we are already achieving through licensee firms, coupled with the pricing of our products and supporting proprietary software, will enable us to add over a million employees to the JFB platform by 2017.”

Radcliffe & Newlands chartered financial planner Mel Kenny says: “I really like what Steve Bee does but clearly the business will need to be heading in the direction of profit soon and hopefully it will.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Now that the larger group scheme providers have developed similar software and give it away for free with groups plans, I cant see that part of the company ever making any money…

  2. If Steve Bee really believes in Paradigm you think he’d take a big equity stake rather than fat salary?

  3. Maybee someone should cut and paste some zeros off the end of his salary?

  4. @anonymous – The key feature of this service is that it is independent of the pension. it can cope with all of the employer pensions and there is no need for the employer to change their AE arrangements when the pension provider changes to NEST or any other provider. That is an advantage worth paying for.

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