Openwork has posted a profit for the fourth consecutive year, with an increase in revenue despite volatile market conditions and the demands of the Mortgage Market Review (MMR).
The firm made an operating profit of £4.8m in 2015, marking four years since the network posted its first-ever profit in 2012 as a standalone trading company.
Openwork, which grew its revenue by 30% last year, signed an agreement in February that will see Zurich divest its 25% shareholding in the network within four years. By March 2020, Zurich will transfer its shares to Openwork’s other main shareholder, Openwork Partnership LLP, which represents over 600 adviser firms and 3,000 advisers.
In April, Openwork announced that Just Mortgages Direct had transitioned to the network, becoming its largest mortgage-focused appointed representative (AR) firm. Since joining Openwork, Just Mortgages has submitted more than 1,000 cases and is already on a run-rate to deliver in excess of £1bn in mortgage lending annually. Overall, Openwork is on course to surpass £10bn of mortgage lending this year.
Openwork CEO Mark Duckworth said: “It is extremely gratifying to announce results that are broadly consistent with 2014’s strong performance, particularly given the significant challenges associated with the Mortgage Market Review. For that we owe a debt of gratitude to our advisers, who continue to work tirelessly to ensure their clients always receive high quality advice and great outcomes.
“In recent months we have signed a significant shareholder agreement that will result in our advisers owning the network, and welcomed major advice businesses like Just Mortgages into the fold. We have a fantastic base from which to develop the business further and we look forward to enhancing our proposition and infrastructure over the coming months and years while growing our revenue and profits.”
