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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, published this week, 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 £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 on the court case.

This year’s accounts show the firm’s total number of employees fell 13 per cent to 658 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.

Last month, Towry chief executive Andrew Fisher said the firm plans to significantly grow the business through acquisitions in 2013. 

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.”

Bradbury Hamilton managing director Sheriar Bradbury says: “As long as Towry’s model does not come under any regulatory pressure I think it will continue to post bigger and bigger profits.”

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