An innovative North East business that combines technology with financial services more than doubled its turnover in 2013, while raising profits nearly 50%.
The True Potential group – which includes an investments firm, a wealth management firm and an adviser services firm – is one of the fastest-growing organisations of its kind in the UK, and now employs 155 people.
The company, which has a 10,000 sq ft head office at Newburn Riverside, recorded turnover of £27.5m for the 2013 calender year – up 112% from 2012.
Net profit, meanwhile, soared 47% to £5.3m and the business added over £1bn of new assets on to its wealth platform.
Neil Johnson, senior partner at True Potential LLP, said: “Much of the turnover increase derives from our wealth management advisory business where we have increased adviser numbers by 255% in the year.
“With all distribution there is a time lag between the initial investment in bringing people on board, and the eventual increase in profit as they go through their first full year with us.”
The True Potential group was set up in 2007 by David Harrison and began doing business the following year.
Johnson said the continued success of the group was due to a technology-based business model, which offered advisers a way of working effectively and in a fully compliant manner following the Retail Distribution Review that came into effect on January 1.
This fundamentally altered the financial services profession, raising the level of qualifications people require in order to provide advice while also extending the range of investments a company must have knowledge of, among other measures.
In April 2013, True Potential rolled out version six of its integrated software platform, which brings together a back-office system, a wealth platform, and client servicing tools, aimed at making life significantly easier and better organised for advisers.
Johnson added: “The Financial Conduct Authority wants to see well-organised firms with a clear value proposition for clients. Our technology offers a solution to advisers that enables them to achieve this whilst still working efficiently and profitably.”
The firm, which has added 30 new head office staff, had also performed strongly in adviser services and won a number of awards during 2013.
It was likewise one of only 74 UK companies to appear in the Deloitte Technology Fast 500 EMEA 2013, a ranking of the 500 fastest-growing technology companies across Europe, the Middle East and Africa based on revenue increases.