We are pleased to announce an 89% increase in client numbers to 31,452 and a rebound to significant pre-tax profitability of £1.55m in our 2018 Results.
Following the sale of EBS to the Embark Group in mid-2017 the business has been through a period of transition. This has involved integrating into the new parent company infrastructure and material changes to our underlying manufacturing approach. In late 2018, these changes were significantly accelerated with the asset purchase of the Option SIPP from a market competitor, which significantly increased the size and reach of the business.
The integration of EBS (and the Option SIPP) into the Group’s infrastructure has greatly supported an improvement in the cost of operations. This, coupled with outperformance in the distribution of services via our market facing partners, has led to significant improvement in the P&L. As a result, EBS has achieved a pre-tax trading profit of £1.55m, up from a close to break-even position of -£0.01m for the same period in 2017. The business is now one of the largest SIPP operators in the UK by client numbers.
Paul Downing, Director of EBS, says: “The last year was another transitional year for EBS. The acquisition of the Option SIPP product produced a major positive catalyst in the latter part of the year, and we will now see scale benefits coming to the fore as we move forward at pace.”
This position, coupled with a strong balance sheet and regulatory capital coverage ratio, further supports the AKG Financial Strength Rating of B (Strong) attained by EBS in early 2018.
Trading for 2019 continues to show similar progression, with solid underlying client growth, advancement of our technology investments, and good overall profit performance for the year to date.
Phil Smith, Group CEO of the Embark Group, says: “We are very pleased with the step up in performance of EBS and its rapid transition to become a ‘go to’ provider in both the Advised and D2C channels. It has outperformed our growth and profit expectations significantly over the last twelve months. Looking forward, EBS is very well positioned for further growth in this highly positive market.”