2plan edges closer to profit as turnover soars 63%

National IFA 2plan says better than anticipated growth in turnover for the first half of the year means it is on track to hit profitability earlier than expected.

The strong growth also means 2plan Wealth Management's external funding, supplied by 15% shareholders Standard Life, is being accessed at a slower pace than forecast. 2plan has so far taken up £900,000 less than planned.

The IFA's actual turnover for H1 2010 reached £5.7m, up from £3.5m for the same period last year.

This 63% growth follows three months of record business levels in excess of £1m, says the IFA.

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.

Chief executive Chris Smallwood says half year turnover is £308,000 ahead of the company's business plan and puts the firm on target to achieve its end of year goal of reaching £11.8m.

Smallwood attributes the success to "significant" investment in technology and infrastructure.

He says: "Whilst we have only just passed our three year anniversary and have therefore not yet moved into profit, we are already over 40% ahead of target against budgeted loss, with the actual figure being only £557,000 by the end of June.

"Our decision to invest significantly in technology and infrastructure upfront is really proving its worth now. "

2plan has hired eight new recruitment directors in the past six months, bringing the total to 12. It has two more appointments planned for the remainder of the year and a target of 20 by January 2011.