The Group, formed when Millfield merged with Inter-Alliance Group plc, is the UK’s largest branded independent financial advisory distribution group with around 1,600 advisers.
The merger required large-scale reconstruction of the business over the past year and the Group believes that the improved stock market conditions and a favourable interest rate environment mean it will ‘reap the rewards of the reconstruction’.
In the year ended 31 March, turnover was up 103 per cent to £85 million from £41.9 million in 2004 and gross profit increased 76 per cent to £26 million. On a proforma basis, including 12 months’ results for Inter-Alliance, the Group generated a combined turnover of £123 million. The sale of Lifetime Group Ltd to Norwich Union is expected to result in a gain of at least £4.9 million.
Paul Tebbutt, chief executive of Millfield, said: “Our view has always been that effective implementation of the merged business 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 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. Therefore, we are on schedule to achieve operating profitability from the fourth quarter 2005 onwards,” he added.
