Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/new-model-adviser/article/a629933
Merchant House cuts 'low profit' IFAs; considers sell-off and delisting
by Alex Steger on Oct 29, 2012 at 08:18
National IFA Merchant House Financial Services, which is based on the remains of collapsed firm Clarkson Hill, is reducing the number of ‘low profit’ advisers in a bid to post a profit as its poor performance continues to impact on its troubled parent company Merchant House Group.
The acquisition of collapsed national IFA Clarkson Hill has continued to haunt Merchant House Group which posted a pre-tax loss of £1.4 million for the first six months of 2012.
The group said it incurred costs of £533,082 in relation to the acquisition of IFA members and commission clawback.
It said it was making progress reducing overheads in the IFA arm and the number of ‘low profit’ advisers.
It said: ‘Merchant House Financial Services has since the beginning of the year made progress in the reduction of its monthly running costs and in reducing the number of low profit advisors.
'This has been implemented during a period, in which as previously mentioned, revenues have increased by approximately 22% over the same period last year.
'The business, in partnership with our regulatory principal, has also made progress in being retail distribution review-ready. This is against a generally accepted opinion that much of the IFA market still has some way to go to be RDR-ready.’
Merchant House Group =chairman James Holmes also said that if the company failed to secure further funding it would consider selling off parts of the business and delisting from the alternative investment market (AIM).
He said: 'The board is also exploring all other options available to it, which may include asset or business disposals, and there is also a risk of cancellation of trading on AIM. The company's shares remain suspended from trading on AIM and shareholders will be updated in due course.'
News sponsored by:
Today's top headlines
- Sunday Papers: Shell warns against commodity market regulation
- Saturday Papers: Backlash to hit scandal-tainted City
- Lights, camera, action! Widows and Helm launch film pension scheme
- High Court judge imposes freezing order on Harlequin bosses' assets
- Tenet scraps five-day Twitter checks with new social media policy
More about this article:
by Himanshu Singh on May 19, 2013 at 03:08