Intrinsic posts £1.3m loss as Ucis complaint costs bite

Restricted network Intrinsic has posted a £1.3m loss mainly due to the cost of dealing with complaints.

The loss for 2014 compares to the £672,000 profit the company made in 2013.

Intrinsic says the biggest factor contributing to the loss was potential exposure to Ucis funds “invested through Sipps in the Brandeaux fund and the Sustainable Growth Group”. £1.7m has been set aside to deal with complaints linked to the investments.

The firm warns that while complaints and redress are at “steady state levels”, regulatory changes could see these increase.

It also says an IT migration project – which will see advisers moved on to new software – carries risk that could “impact on both advice profitability and adviser retention”.

In addition, the Old Mutual Wealth-owned network added 231 new advisers over 2014, taking the total to 930.

Turnover increased by 34 per cent, from £46m to £62m, but overall margin was “marginally reduced” on 2013 due to the acquisition of firms with lower margin business.