Virtual Net sees profits rise

Virtual Net, a technology based network for IFAs based in Maidstone, has announced further significant progress in its annual report for the year to March 31 2005.

Turnover increased by 44%, gross profit by 62% and a financial profit of 293,000 was made over the 12 months.

The last 12 months at Virtual Net continued with the trend of an increase in turnover over the previous year from 8.1m to 11.7m, an increase of 44% over the 18 month period ended March 31 2004.

The operating profit of 108,000 for the period compares with a loss of 463,000 for the 18 month period ended March 31 2004. This is after 176,000 was allocated in the financial year to the continued cost of future investments, acquisitions and consolidation of the existing business.

Junior Sobowale, CEO of Virtual Net, says: “I am delighted with the progress that we have made and our strong cash and profit position is exactly as planned. We have invested heavily into our organic growth in membership with smart systems; extra skills to ensure a successful launch of our new service offering for advisers that are FSA directly authorised; and research into possible acquisitions or joint ventures to continue our drive for even greater economies of scale.

“Virtual Net is on an aggressive growth strategy and these results will help us further improve upon customer satisfaction across all areas. The industry is changing and Virtual Net and its customers are adapting with that change. Virtual Net will continue to invest in quality support services for our network members, and our FSA Direct customers.

“We need to keep on improving and be smarter in how we deliver easier, more effective compliance, regulatory and technical services to members. I am confident that we can continue to grow as a supplier of first class compliance services to all advisers in the marketplace.

“A lot of other networks and support services will be envious of our strong financial results this year which fully reflect our prudent management of the business”