Jelf Group has increased its profits despite revenues falling in its financial planning arm due to difficult market conditions.
The group has reported a profit before income tax of £4 million for the year ended 30 September 2012, compared to the £3.2 million figure posted for the same period in 2011.
However, Jelf Financial Planning’s revenues fell 5.3% to £7.1 million, compared to £7.5 million for 2011 which the company said was due to difficult market conditions.
Alex Alway, group chief executive at Jelf said: ‘It continues to be a difficult wider environment for investments with all the problems associated with sovereign and private debt. Directly as a result of these trading conditions revenues from financial planning have fallen.’
Despite this, assets under advice on platforms rose to over £490 million in 2012 compared to £450 million in 2011.
Alway also said that the group had implemented changes to the financial planning business to meet retail distribution review (RDR) requirements.
‘We reported in previous years that the steps being taken to ensure the business model for financial planning were suitable for the proposed new regulatory regime (RDR), taking effect within this sector at the start of 2013.
‘We now have a new investment proposition, we have segmented our client base, we have new literature and a new preferred platform provider.’
Jelf Group’s overall revenues also increased in 2012 to £73 million, up from the £72.1 million reported in 2011.
Its insurance broking arm increased its revenues to £46 million this year from the £45 million in 2011, while its employee benefits division’s revenue dipped slightly to £19.8 million in 2012 compared to the £19.9 million reported the previous year.
The group also spent £777,000 on staff related costs for re-organisation of the company.
In October, Jelf Financial Planning’s managing director Martyn Laverick left the firm as it reviewed its management structur, joining Broadstone Pensions & Investments.