Directors' Report & Financial Statements - page 5

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THE ALEXANDER BEARD GROUP PLC
CHAIRMAN’S STATEMENT -
FOR THE YEAR ENDED 30 NOVEMBER 2013
The trading year in question was only one month old when the introduction of the regulators Retail Distribution Review
(RDR) and its most significant impact, the ending of commission on investment business came into force.
That and the considerable downward pressure in the economy made for another year of difficult trading that was not
without its positive aspects and the groundwork was laid in a number of areas for the Group’s future growth.
I thought this year it would help shareholders and stakeholders to better understand some of the headline numbers so I
believe the following comparisons bear some scrutiny:
Fees
£440,112
23%
(12%)
Initial commission
£817,803
42%
(53%)
Renewal
£98,104
5%
(5%)
Trail
£583,920
30%
(29%)
Fees, trail and renewals which account for our recurring income totalled 58% (46%) which is a welcome
increase. Commission was still earned from our overseas activities and FCA allows commission to continue on group pension
plans where commission was in place before RDR was introduced.
Division by Division
UK Financial Planning Division
Despite the ending of commissions it was very pleasing to see revenue in this division improve by 11.45% to £861,482
(£772,930). There were no increases or decreases in partner or adviser numbers and no acquisitions during the year in
question.
Expat & Emigration Division
In November 2012 we took the decision not to renew our services contract with our franchised branch in Cyprus branch
due to increasing compliance costs and marginal profitability. This resulted in a reduction of £130K in this Division’s overall
revenue during this financial year. However we replaced this with more profitable fees and commissions from other sources,
including increases in our Australian and other emigration led services and as a result turnover overall only fell to £145,154
(£216,669) but discounting the lost revenue from Cyprus underlying revenues increased by 67%.
Early in the year under review Phil Teague, who joined the company in November 2012, was appointed to the position of
Divisional Director and has now opened the E&E branch premises in Bath.
At the end of last year’s trading Phil was responsible for signing an exclusive contract with both Pickfords and Britannia
International Removals to be their ‘overseas pension transfer’ partner of choice resulting in our services being marketed to
emigrating clients by their salesforces and is proving to be a source of high quality business. Our partnership with TOR FX
continues to be mutually profitable and the number of other UK IFA forms referring QROPS business continues to grow, so all
in all despite a drop in turnover we made steady progress in the areas we want to be in.
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