Sesame group boosts profits after Bankhall deal

Sesame Bankhall, the combined IFA network and support services proposition, saw profits jump 66% last year to £5m.

The Resolution-owned distribution giant headed up by Ivan Martin (pictured) generated operating profits of £5m in 2010, compared with £3m the previous year.

Sesame acquired Bankhall and PMS, a mortgage broker services provider, in October 2009 and completed the integration of the businesses in the first half of 2010.

Resolution says the full-year result for 2010 reflects the combined fees generated by these businesses and is after charging £1m of one-off integration costs related to the consolidation of offices.

The 2009 comparative also includes a contribution of £1m from Pantheon which was disposed of in March 2010.

Meanwhile, Friends Provident, acquired by Resolution in 2009, says measures in the RDR mean it is unlikely to market investment products after 2012.

The group says the combination of the investment needed to build RDR-compliant point of sale and operating platforms, plus the the likely margins available and the projected volumes, means "adequate" shareholder return will not be achieved.

Resolution posted a massive increase in profits for 2010 thanks to its acquisition activity.

The firm's IFRS-based operating profit before tax was £275m last year, up from £6m the previous year.

To date, Resolution has acquired Friends Provident for £2.01bn in November 2009, AXA UK Life Business in September 2010 for £2.75bn and BHA in January 2011 for £168m.

Shareholders will now receive a dividend of 12.27p per share, up 15% on the previous year, while the group has also set a 18.85p target for 2011.

Resolution also says it is shifting towards the integration stage of its UK consolidation project, although it will continue to keep an eye out for any opportunities which would be "clearly accretive to the group's project returns".

However, it says it has identified opportunities in the asset management sector, either as a stand-alone consolidation project, or as part of its UK Life Project, if there is the potential for "synergy benefits" with the Friends Life business.

John Tiner, CEO of Resolution Operations, says: "The delivery of cash in 2010 shows early value for shareholders. The non UK businesses are performing well and generating value.

"In the UK our restructuring and strategic repositioning continues. As we deliver operationally these businesses will generate valuable growth and cash rewards for shareholders."