- National IFA betters financial targets in challenging year for the industry -
• Profit ahead of full year targets
• Cash balances of c£3.3 million, up from c£2.7 million a year earlier
• Annualised revenue per adviser more than twice the industry average
• Prudent business management and partnership culture help IFA to weather economic downturn
London – May 27, 2009 – Foster Denovo Group plc has reported its financial results for its first full trading year to 31st December 2008. Turnover stood at £20.7 million and gross profit at £8.3 million with profits before taxation of £689,000.
Profitability was ahead of full year targets on annualised revenue per adviser of £190,000 , despite the economic downturn, which had an impact on productivity in the second half of the year. The company also reported cash balances of c£3.3 million, up from c£2.7 a year earlier.
The Board recognises the significance of being ahead of its financial targets in what has been a challenging year for the sector. It also believes that the underlying strength of the Foster Denovo business model, and the on-going focus on excellent client service, positions the business well for the opportunities of 2009 and beyond.
Foster Denovo places significant emphasis on building lasting relationships with clients based on transparency and trust. It also advocates that in challenging economic conditions there is an increased need for independent, objective financial advice and long-term, holistic financial planning.
Clients have increasingly questioned their ability to absorb investment risk over the last 12 months and are keen to develop a fuller understanding of their risk profile. Foster Denovo remains committed to helping clients gain a deeper insight into their financial goals and develop a strategy to achieve them at an acceptable level of risk.
In September 2008, Foster Denovo launched a re-branded Employee Benefits proposition based on a belief in the value of individual financial advice for each member of client organisations. The business continued to invest in proposition development throughout 2008 and will launch a number of new initiatives in the second half of 2009.
Keith Carby, Non-Executive Chairman of Foster Denovo, commented: “This set of results indicates an excellent first full year of trading for Foster Denovo as an independent business, particularly during such a difficult economic period. This is testament to the prudent business management demonstrated, and the strength and experience of the senior team.”
Roger Brosch, CEO, added: “The progress made by the business in its first full year is reflected in the positive financial results which are a credit to everyone involved. The strength of the Foster Denovo partnership model creates an entrepreneurial culture, which is potentially more robust during an economic downturn. People place an increased value on sound and independent financial advice in tougher times, and I firmly believe that the quality of advisers and staff has accelerated the growth of the business to meet that need.
“Whilst we expect pressure on revenue in the year ahead, the past year is proof of our ability to manage our costs in line with the prevailing market conditions. We have continued to focus our energies on developing our client propositions and have invested considerably into the business. We look forward to the remainder of 2009, which will see us introduce some very exciting propositions to our private clients.”
Notes to editors:
About Foster Denovo:
Foster Denovo Group plc is the holding company of Foster Denovo Limited, a national IFA serving corporate and private clients which is authorised and regulated by the Financial Services Authority, and provides advice on employee benefits, wealth management, retirement solutions and private finance.
Foster Denovo was established in 2005 and completed its buyout from the Tenet Group Limited in 2007.
The Foster Denovo Group plc board consists of:
• Keith Carby (Founder and Non-Executive Chairman) formerly Managing Director of Allied Dunbar, founder and former Managing Director of J Rothschild Assurance plc (now St. James’ Place), Chairman and Chief Executive of Inter-Alliance Group plc, and current Chief Executive of Openwork.
• Roger Brosch (Founder and Chief Executive) founder and formerly Distribution Director of Millfield Group plc.
• Mike Cleary (Chief Operating Officer) formerly Chief Operating Officer of Berkeley Independent Advisers and Chief Executive of Berry Birch & Noble Group Services and Berry Birch and Noble Financial Planning.
• André Jordache (Founder, IFA and Non-Executive Director) founder and formerly Non-Executive Director of Millfield Group plc.
• Alan Taylor (Non-Executive Director) formerly Executive Director and responsible for compliance oversight at DBS Financial Management plc, Berkeley Morgan and, latterly, Bankhall Investment Associates.
For further information, interviews and photography, please contact:
Katrina Suppiah/Kate Alexander, Publicité
Tel: + 44 (0)20 8543 6582/+44 (0)20 8543 8481
This press release was distributed by ResponseSource Press Release Wire on behalf of Publicité Ltd in the following categories: Business & Finance, for more information visit https://pressreleasewire.responsesource.com/about.