Independent financial advice group Sumus is negotiating further acquisitions after lifting pre-tax profit 76 per cent to £1.5 million.

The Bristol-based company increased revenues 96 per cent to £29.8 million in the year to September and says profits and turnover growth reflected the acquisition of Deverill Black & Co, another IFA group, for £750,000 in cash and shares last March. During the year, AIM-quoted Sumus launched The Brunel Funds, its own fund management arm, and attracted £5 million to invest.

Chief executive officer and key shareholder Allan Rosengren says the company, which has £2 million to £3 million cash on top of regulatory requirements and no debt, is seeking out and talking to potential new acquisitions. He concedes that the current turmoil in financial markets makes the short-term outlook uncertain, but argues that customers’ continued need for financial advice for their lifetime needs should secure medium-term prospects.

A 15 to 20 per cent sell-off means that the stock market ‘has to be better value’, maintains Rosengren. ‘These are the best times to make financial plans,’ he suggests. ‘Although this is a challenging time, it will be seen as a blip.’

Broker Arbuthnot, which replaced HB Corporate as Sumus’s independent financial adviser and broker in July, reckons the company can increase profits by a more modest 20 per cent to £1.8 million pre-tax in the current financial year, with £2.2 million on the cards for 2008/09. At 45.5p, up 1p this morning, the shares are 0.5p off Growth Company Investor’s recommendation last February, but should still outperform several sector peers.

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