A Liverpool company that brokers the sale of shares in Everton FC fell to a loss during its latest financial year as it continued to be impacted by restrictions from the Financial Conduct Authority (FCA).
Blankstone Sington asked for restrictions to be placed on its activities in November 2021 following the "loss of several experienced staff who cannot easily be replaced".
The firm contacted the FCA after the departures "caused difficulties for the company to provide its normal standard of service".
READ MORE: Click here to sign up to the BusinessLive North West newsletter
Among the departures was chief executive Neil Turner who left his role in the summer to become investment director at Investec.
Under the voluntary agreement the firm is restricted from disposing of its assets without the written consent of the FCA.
It is also restricted from accepting client money and custody assets from existing clients, and from opening accounts for new clients without permission.
According to newly-filed accounts with Companies House, the company fell to a pre-tax loss of £531,731 for the 12 months to May 31, 2022, after achieving a profit of £63,618 in the prior year.
Its turnover remained static at £3.2m over the same period but its funds under management fell from £472.4m to £401.8m.
A statement signed off by the board said: "It has been another challenging year for the company.
"Turnover was similar to that of last year, but administrative expenditure was significantly higher.
"Significant senior staff departures all at a similar time who were not easily replaceable resulted in dialogue with the regulator, which in turn led to a voluntary withdrawal of permission that prevents the company from taking on new clients and taking any new assets/money in from existing clients.
"The directors have worked tirelessly with the regulator to alleviate the situation.
"Shareholder funds have also reduced, both reflecting the increase costs and a significant contribution to the Defined Benefit Pension Scheme that is closed to accrual.
"The directors are conscious of the cash position and continue to monitor the position carefully."
The company added: "The UK private client investment management industry remains very competitive and subject to influence from both national and international economic and political influences.
"The cost of regulation is a significant factor. Well documented inflationary pressures and economic slowdown in the broader environment together with the restricted permissions mean that the outlook is uncertain.
"Much is dependent on the lifting of the current restrictions. The company has had indications of significant potential new business that would materially enhance the assets administered providing a solid foundation for the future."
READ NEXT:
