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Husselbee spends heavily to grow North’s discretionary market share
by Robert St George on Oct 10, 2013 at 08:04
Significantly higher costs as part of a drive into the discretionary market pushed North Investment Partners into the red last year.
North’s turnover increased to £1.22 million from £1.14 million in 2011, according to its accounts for the year ended 31 December 2012, which were released last week. However, this was more than offset by a substantial rise in the company’s overheads.
North’s cost of sales shot from £161,000 in 2011 to £341,000 last year, and its administrative expenses from £826,000 to £1.3 million.
This resulted in North posting a loss of £426,000 for the period, having recorded an operating profit of £150,000 in 2011. The outlay also caused North’s net current assets to dwindle from £215,000 to £85,000 through the year.
Chief executive John Husselbee, who founded North in 2005, told Wealth Manager the bulk of the investment had gone into its Wealth Solutions Service, its white-label discretionary model portfolio offering. He said this had more than doubled in size since January, attracting £100 million, with its number of clients having grown from two to nine.
‘Last year was all about putting in the resources,’ Husselbee (pictured) explained. ‘This year has been all about growth, and it’s been a lot brighter than last.’
He expressed confidence that discretionary services were the future of financial advice following the retail distribution review. ‘We arrived a little early but we’re definitely in the right space,’ said Husselbee.
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