Easter quits Honister as advisory units post losses

Alan Easter, strategy, product and commercial development director at Honister Capital, is leaving the company to pursue other business interests.

Easter's exit comes as the group announces its advisory businesses - Sage Financial Services, Burns-Anderson and Honister Partners (formerly Bates Investment Services) - delivered a combined loss of £710,000 in the six months to 31 March.

Direct-to-consumer proposition Willis Owen made a profit of £1.12m, meaning the group posted an operating profit of £468,000 in the period, from more than £52m worth of income.

In the corresponding period last year, Honister's advisory businesses contributed more than £1m to total group profits of £2.2m.

"During the last six months, we have seen the impact of higher regulatory costs and PI insurance premiums which have been absorbed by the business, " new CEO Richard Pearson says.

"Trading in the advisory business has been particularly challenging during this period. The board has already begun to take steps to improve profitablity and we will see the benefit of those actions as we head into our next financial year."

Meanwhile, the group has appointed Jason Chapman, current product and marketing director and Lynne Smith, client and employee services director, to its executive management team.

Current managing director of advisory, Frank Gorrie, has been appointed to the board.

Honister Capital was launched in June 2009 after acquiring the shares of The Money Portal's advisory businesses: Burns-Anderson, Sage and Willis Owen, as well as the principal assets of Bates Investment Services.