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Succession aims for profit early next year

Succession says it expects to start making a profit by February 2012, six months ahead of schedule.

The IFA consolidator says most of the firms it has acquired are close to completing the two-year consolidation process.

During that process, Succession holds a 15 per cent stake in the businesses it acquires. If a business successfully completes the transition, which centres around moving to a fee-based model, it is fully integrated and Succession commits to a total buyout.

Firms that do not meet the transition requirements after two years are not integrated and Succession sells off its stake over three years.

Succession director Simon Chamberlain says: “I am confident that Succession will reach profitability by February 2012, which will be six months ahead of our three-year target. We are looking at reaching a significant profit on the back of a £1bn investment. It has taken our competitors a lot longer to reach profitability, if they have at all.”

The consolidator currently has £5bn assets under administration and 32 member firms. It aims to increase membership to 50 firms and assets under administration to £7bn by 2015.

Succession published accounts in April but did not have to give profit figures because it is a recently created company.

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