Profits for the network operation were 22% up on the previous year, mirrored by a 20% increase in network turnover. Stonebridge puts this increase in both turnover and profit down to a strong focus during 2010/2011 on protection advice and sales.
Stonebridge Group now houses 37 appointed representative (AR) firms encompassing 107 registered individuals (RI). It believes its strategy of only recruiting highly productive, quality AR firms has helped drive the improvement seen, even at a time when the mortgage market, for example, has not produced the volumes of business witnessed in previous years.
Stonebridge is actively recruiting at present and expects to announce a number of new AR firms in the coming months. The business has been focused on recruiting both existing ARs looking for a new network home plus those advisers who may have previously worked for direct to consumer provider arms but are now opting for independent status.
Stonebridge Group also includes Revolution – the firm’s business solution software system – and a wealth management arm.
Richard Adams, Managing Director of Stonebridge Group, commented:
“Our results for the Stonebridge network operation are particularly pleasing and seem to justify our focus on quality not quantity when it comes to recruiting AR firms. Over the last few years we have seen only too clearly the problems that come when networks are run based purely on AR numbers rather than a focus on recruiting quality firms who are conducting significant levels of business. Our strategy continues to hold true and the results in terms of both turnover and profit increases are clear to see.
"We are not interested in bringing on firms to boost numbers but we want to be able to see a sound firm generating good levels of business. In return we can offer a variety of services and support opportunities whilst ensuring the firm’s compliance needs are fully taken care of with a tight span of control.
“There is no doubt that the strength in our results came from an increasingly focused approach to the protection market which was absolutely vital given that mortgage volumes and activity are nowhere near the levels of a few years’ previous. Having said that, mortgage activity appears to be improving slowly and we fully anticipate that 2011/12 will see a much more fruitful mortgage market for our firms.
"We aim to maintain this approach which has delivered such sound results and fully anticipate announcing a series of new developments, including the recruitment of more AR firms, throughout the rest of the year. Our aim is to maintain this momentum which should ensure we will have another strong set of results not just over the next 12 months but also in the years ahead.”
