Sesame makes £4m profit as network arm loses £9.3m

Bond bubble bursting?

Sesame Bankhall Group has reported pre-tax profits of £4.1m for 2012 despite its network arm reporting a £9.3m loss largely due to its £6m FCA fine.

The profit is almost double the £2.2m profit reported by SBG for the previous year. The network arm reported a £2.4m loss for 2011.

The network made a complaints provision of £12m for the year whilst paying out £10.6m in claims. 

The highest paid director at the business received £539,000 for the year.

Turnover increased 6 per cent to £180.2m, up from £170.3m in 2011.

Sesame announced in June it had been fined £6m for failing to ensure investment advice was suitable and for failings in the systems and controls that governed the oversight of its appointed representatives.

Sesame had a total of 2,252 registered individuals at the end of 2012, up 1 per cent from 2,222 in 2011.

The firm had a financial surplus of £14.9m, down from £21.9m the previous year, SBG attributers the majority of the drop to the FCA fine.

Sesame chief executive George Higginson says: “In challenging market conditions we have continued to see healthy increases in revenue, adviser productivity and new advisers. Through our multi-million pound investment in technology and a new broader range of services for advisers, we are positioning the group strongly for the future.”