2plan edges closer to profit as turnover soars 55%

2plan Wealth Management's revenue rose 55% in Q1, due to strong take-up of the company's premium fee-based ongoing service agreements.

Turnover for the first three months of the year hit a record £2.49m, according to the firm, up from £1.61m for the same quarter in 2009.

The national IFA says it has yet to turn a profit, but adds at the end of April it was almost £300k ahead of its target to break even by the end of 2011.

Last month returned the highest monthly revenue since the company started in July 2007, with sales for April passing the £1m mark for the first time, 2plan says.

Today's Q1 2010 announcement follows strong annual results for 2009.

Preliminary corporate results for last year showed a record 144% increase in annual turnover of £7.8m, up from £3.2m (2008).

2plan chief executive Chris Smallwood says: ""Following the recent launch of our new personal client agreements we are therefore very encouraged to see that many of our advisers have reported a growing number of clients now opting for our premium fee-based retainer services."

"Given continued economic and political instability many industry commentators had expected the adviser sector to be hit quite hard in the first quarter of this year.

"[But] over the last 18 months we have been undertaking a huge amount of work with relation to how adviser charging and the RDR has been developed and how this is already changing the way that our advisers work with their clients going forward."