41.8% increase in pre-tax profitability for our SSAS business

By Abbie Knight

News

Jun 04, 2019

We are pleased to announce the financial results for our subsidiary, Rowanmoor Executive Pensions Limited (‘Rowanmoor’). Rowanmoor trades as the specialist Small self-administered scheme (SSAS) administration business of our Group and is the UK market leader in the provision of SSAS.

During 2018 Rowanmoor has progressively evolved its operations, continuing to focus its capabilities on its two primary products: a Full SSAS service and Defined Benefit SSAS service. This has resulted in the controlled attrition of several marginal service activities. The business has also cemented its capabilities for manufacturing SSAS on behalf of its sister companies EBS Pensions Limited and Embark Services Limited, using the capabilities it has established over 20 years’ as the administrator of the Standard Life SSAS.

Looking forward, the Rowanmoor business continues to have an appetite for organic growth and views SSAS as a long-term viable service offering across multiple distribution channels - whether regulated or not by the Financial Conduct Authority (FCA).

The continued development of the business has resulted in a trading profit of £1.16m before tax adjustments, a material increase from the £0.82m pre-tax performance reported in 2017. Coupled with a strong balance sheet, this further supports the AKG Financial Strength Rating of B (Strong) the business attained in 2017.

Trading for 2019 continues to show solid progression along similar lines to 2018.

Dave King, Managing Director of Rowanmoor, said:

“We are very pleased to report a further material improvement in the performance of our operations this year. We remain the market leader in SSAS provision and as such we will continue to focus our efforts on ensuring SSAS plays an enduring role in the UK pensions market, while safely delivering results for our stakeholders.”

Phil Smith, CEO of the Embark Group, said:

“The market for SSAS-based pensions is complex, and does not enjoy the growth rates seen in either the SIPP or Platform space, with estimated average net market growth of <2% in 2018. The business is now perfectly set to dominate both organically and inorganically as we look forward - this is not a market for cottage industry players.”