Network Openwork has posted its first ever profit reversing the £13 million loss it made in 2011.
The restricted network has announced an unaudited profit of £600,000 for 2012 compared to a pre-tax loss of £13.3 million it made in 2011
The loss in 2011 was in part due to £7 million of exceptional costs incurred through a restructure of the company which saw it reduce staff numbers, retrain remaining staff for the retail distribution review, and change its infrastructure.
In March 2012, Philip Martin, Openwork marketing and propositions director, told New Model Adviser® the network aimed to get out of the red and be profitable within 18 months through lowering its charges to advisers but driving more assets onto its platform and into its funds.
Mary-Anne McIntrye (pictured), chief executive of Openwork said: 'Openwork being profitable for the first time is a hugely significant milestone and is a source of great encouragement for our adviser firms, not only in knowing they are part of a stable network but also of course as shareholders in the business.
'It has been a long journey since Openwork’s launch in 2005 and this marks a turning point in its history as a standalone trading company. We recognise however that 2013 is likely to be extremely challenging and we will continue to use our scale to drive revenue from multiple sources while giving our advisers all the support and tools they need to thrive in difficult market conditions.'
Earlier this week Openwork expanded its distributor-influenced fund (DIF) proposition Omnis Investments by adding four new funds. The network had announced in December 2012 that it would tie its advisers to its DIFs.