Millfield announces its audited results

Millfield Group, a leading independent financial services advisory group, has revealed its results for the year ended March 31 2005.

The successful integration of the Inter-Alliance Group has created the UKs largest branded independent financial advisory distribution group.

The merger necessitated large-scale reconstruction of the business over the past year and this will create significant cost savings going forward.

With improved stock market conditions, coupled with a favourable interest rate environment, the group is confident that it will reap the rewards of that reconstruction and is on target to achieve operating profitability from the fourth quarter 2005.

Turnover was up 103% to 85mn (2004: 41.9mn).

On a proforma basis, including twelve months results for Inter-Alliance, the group generated combined turnover of 123 mn.

Gross profit was up 76% to 26 mn (2004: 14.8 mn).

Operating loss before goodwill amortisation, impairment losses and exceptional items was 8.9 mn (2004: 9.3 mn loss).

Loss before amortisation and tax was 18.1m (2004: 10.8m loss).

Millfield are on target to achieve operating profitability from the fourth quarter 2005 onwards.

Lifetimes sale to Norwich Union is expected to result in an exceptional gain of at least 4.9m.

Three major business initiatives have been launched.

There has been 26% reduction in the run rate for overhead costs from 49 mn at time of merger to 36m now.

Further annualised savings of 4 mn are expected in fourth quarter of 2005.

Paul Tebbutt, chief executive of Millfield, says: “Our view has always been that effective implementation of the merged businesses will deliver enhanced profitability and growth.

“Our grounds for optimism are based on the fact that we can now focus on working more effectively with our advisers and Principals of our advisory firms to increase turnover, margin, profitability, recruitment and retention in the knowledge that the long term savings market is recovering after several difficult years.

“Improved stock market conditions, the reduction of interest rates and the growth in pensions business in the third and fourth quarters, ahead of key government reforms next year, will boost distribution businesses that have scale in terms of advisers and clients, both of which we now have.

“Therefore, we are on schedule to achieve operating profitability from the fourth quarter 2005 onwards.”