PTFS parent posts £3.3m loss
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Personal Touch Holdings, the parent company of Personal Touch Financial Services, has posted a pre-tax loss of £3.3m for the year ending December 2009.
This compares with a £4.1m loss in 2008.
But its network arm PTFS made a profit before tax of £2.6m for the year, compared with £2.5m in 2008.
Personal Touch Holdings also comprises PT Surveying Limited and PT Debt Solutions and has net liabilities of £3.6m, compared with £1.6m in 2008.
Its turnover for the year was £65.7m, down from £76.4m in 2008.
The network’s turnover was £63.5m, compared with £73.7m in 2008.
It had 965 appointed representatives at the end of 2009, an increase of 3.5% on 2008.
But its number of registered individuals has fallen to 2,010 from 2,118 in 2008, a fall of 5%.
The network had a cash reserve of £2.5m at the end of the year.
The network has a £5.8m provision for clawbacks on indemnity commissions, which represents the expected cost of clawback from product providers.
The accounts for Personal Touch Holdings say: “Whilst the trading result for the year was worse than originally predicted, the group ended the year with cash reserves in excess of £2m, which puts it in a strong position to weather the current turbulent market conditions.”
Throughout 2010, PTFS says it has continued its upward profit trajectory, growing profitability by 5% to the end of August 2010 when compared with the same period last year.
Doug Crawford, chief executive of PTFS, says: “The fact that PTFS is continuing to record profit growth in this market is testament to their ability and dedication to our adviser community. But while this performance is pleasing, it is far more significant that we have achieved this level of growth while retaining our strong cash position.
“We currently have cash reserves of £3.4m and are £4.9m ahead of our minimum capital adequacy requirements. This, coupled with a lack of bank debt, puts us in the enviable position of being protected from unforeseen economic conditions while also being able to react quickly should any acquisition opportunities arise.
“We have made a series of strategic changes within PTFS over the last 12 months, and there will continue to be further changes as we strive to build a better business and a stronger, more supportive community for our members. We are making financial and operational improvements on a daily basis, and the future looks extremely bright.
“With three months to go until the end of our financial year, I am extremely confident that we will see continued growth and record an even stronger performance for 2010.”
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