LONDON (Alliance News) - Curtis Banks Group PLC, a pension administration services provider, on Tuesday reported a jump in pretax profit in the first half, bolstered by the effect of continuing operations and acquisitions.
Pretax profit rose to GBP2.1 million in the six months to June 30, compared with GBP1.2 million in the corresponding half the prior year, as revenue grew to GBP7.5 million from GBP4.5 million.
The company said it administered 26,755 self invested personal pension schemes in the half, more than double the 12,472 in the prior year period. The number of self-administered pension schemes rose by 11% to 297. Assets under administration rose to GBP8.4 billion in the half, from GBP4.8 billion in the prior year period.
The first half of the year has developed largely as expected. Due to the acquisition of the Friends Life book of SIPPs part way through this period we expect profits to be second half weighted.
"With the increased regulatory environment for SIPP operators and forthcoming changes to capital adequacy rules we are seeing a continuing consolidation in the industry. We are being regularly approached by SIPP operators looking for an exit for a variety of reasons and we are evaluating opportunities as they come to us," Executive Chairman Chris Banks said in a statement.
"Whilst it is one of our objectives to grow the business by acquisition as well as organically we will only consider acquisitions of high quality books of SIPPs that we know can provide at least the level of operating margins we are currently achieving. The recent admission to AIM has provided us with the resources and ability to consider and fund all levels of acquisition," Banks said.
Curtis Banks listed on AIM in May, when it raised GBP7.5 million before costs. It was focused on absorbing two acquisitions - the SIPP businesses of Pointon York SIPP Solutions Ltd and of Rathbones Pensions and Advisory Services Ltd - completed at the end of 2014 in the first half of 2015. In addition, it completed the acquisition of a client book from Friends Life, now part of FTSE 100 insurer Aviva PLC, in March.
"Due to the acquisition of the Friends Life book of SIPPs part way through this period we expect profits to be second half weighted," Banks said.
"Today's results show the progress made both organically and through acquisition and demonstrate what we believe can be delivered going forward."
Shares in the company were up 0.6% at 238.00 pence on Tuesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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