Personal Touch Financial Services reported last week a 38 per cent decline in profits after tax for 2011 compared with the year ending December 2010.
The company’s latest financial results, published today for the year ending December 2011, reveal gross profits stood at £9.8m with profits after tax of £1.6m. This latest figure is down from the £2.6m taken in profits on ordinary activities after taxation in 2010.
PTFS chief executive officer Max Wright says: “Since December 2011 we have had to make some brave decisions, such as increasing charges for members for the first time in three years – and it is only as a result of this that we will be able to move forward more rapidly and deliver better results for the future.
“As part of our Vision 2013 strategy, further efficiencies will be made to ensure we have a lean and streamlined business for the new regulatory regime. Our new board is hard at work focusing on ensuring members are given maximum support at a difficult time for many firms and indeed for their clients – as economic problems continue to cause hardship.”
The group’s net assets grew from £12.4m in 2010 to £14.1m in 2011.
The results came hot on the heels of the network’s recent announcement that it was hiking its fees for its appointed representatives.
Mike Fitzgerald, sales director at EMBA, runs nine firms that are all under PTFS as appointed representatives.
He says EMBA is happy with what it currently receives from the network and is sticking with it.
He says: “The FSA has just put its fees up and the networks have had to pay these increased fees. It was a big increase and was not welcome. The networks are trying their best but they’re just having to pay a lot more money.”