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.”