Gross margins at the business rose to 21.5%, up from 19% the previous year. Adviser productivity also rose, up 6%.
Peter Coleman, chief executive of the business which has 850 IFAs as part of its national arm and a further 25 as part of its network, said the turnaround was down to a four-step process to create a sound business.
Coleman, (pictured) who took over at Positive Solutions two years ago, said one of the first things he did was to strengthen the company’s compliance and regulatory position.
“This is the foundation of a successful business,” he said.
He also implemented a cost-cutting drive to put the company in a stronger financial position, which included sacking 25 people in 2011, and cutting admin expenses by 14% last year.
“We had inefficiency in the business and it was a difficult economic cycle,” said Coleman.
He put in place a “profit transformation plan” and new governance procedures where he personally signed off all expenses.
“I treated every penny as if it was our financial advisers’,” said Coleman.
The third step was making sure the business offered a market-leading proposition, said Coleman.
Finally, Coleman has his eye set on growth.
“We want to appeal to more advisers and increase average productivity.
“Two years ago average adviser productivity was £65,000 but, last quarter it had risen to £80,000. Over the next two years we want to get that to £100,000,” he said.
Coleman said he wants Positive Solutions to offer advisers the “John Lewis level of customer service”, and is aiming to increase the number of advisers who are part of its network to between 50 and 100.
Positive Solutions is also planning to open a restricted arm by the end of the year.
Coleman said about one in ten Positive Solution advisers are “seriously considering” taking the restricted route, and the company wants to help facilitate that.
“Our job as a business is to support advisers, not tell them what label they should have. We want to provide a range of propositions for them.”
Coleman is confident about Positive Solutions’ new found profitability, but predicts a “tough year” for financial services.
“If your results in 2012 didn’t show a positive return you will really struggle in 2013.”
