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Towry posts £9m profit despite £6.8m cost hit

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Towry chief executive Andrew Fisher

Towry has posted a £9.4m pre-tax profit for 2012 despite incurring £6.8m in exceptional costs during the year.

The pre-tax profit rose 14 per cent from £8.3m in 2011. Exceptional costs increased 52 per cent from £4.5m in the previous 12 months.

Towry’s annual accounts reveal the exceptional costs include a Financial Services Compensation Scheme levy of £1.8m and £3m in relation to the closure of its Londonderry, Norwich and Oxford offices.

Towry made 13 staff redundant as a result of the closures.

There is also a cost of £171,000 in litigation costs resulting from the firm’s unsuccessful court case against Raymond James and seven former Edward Jones advisers, as well as £1.4m in professional fees.

Towry’s 2011 accounts revealed the firm has already spent £2.3m in relation to the court case with Raymond James and the EJ advisers.

The accounts show total employees with Towry fell 13 per cent in 2012 to 658, down from 741 in 2011.

The highest paid director received £290,000 including pension contributions in 2012, an increase of 2 per cent from £285,000 the previous year.

Towry chairman Gerald Corbett says: “Towry is well positioned to benefit from ongoing change in the industry and to act as a consolidator using its management expertise, business model and operational infrastructure to transition profitable advisory businesses to the new regulatory environment.”

Chief executive Andrew Fisher says: “Our business has grown significantly over the last few years and our plan is for further significant growth.”

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