The cashpile at the financial advisory business owned by celebrity finance guru Eddie Hobbs last year jumped to over €300,000, new figures show.
According to accounts recently filed by Hobbs’ Financial Development and Marketing Ltd, the cash at the firm increased from €243,375 to €304,145 in the 12 months to the end of October 31.
During the same period, the Naas-based firm’s accumulated profits fell from €362,000 to €325,713.
Mr Hobbs yesterday stressed that the drop in accumulated profits does not mean that the company recorded a trading loss for the year but only that he took more out of the business for himself, which he pointed out is subject to 52% tax recovery.
“FDM is a very profitable company and has enjoyed single digit increases in revenues in each of the past couple of years after the crash years of 2009-10,” said Mr Hobbs.
He said that the revenues “are based as a percentage of assets under management across several assets managers, much of it international”.
Mr Hobbs established FDM in the early 90s and he said yesterday “the business is going very well”. He is also managing director.
According to Mr Hobbs, the firm advises on €250m in assets under management, with some asset managers employed by the likes of Goldman Sachs and JP Morgan.
The Cork native said the business “is a very small operation” with a team in place for more than 20 years, stating that he can only take on a small number of private clients every year.
He said his income from his work in the media and writing books is entirely separate from the FDM business, which he pointed out is regulated by the Central Bank.
In the past, Mr Hobbs has presented TV shows such as Rip-off Republic, Show me the Money, and The Consumer Show.
Mr Hobbs said his business model involves the firm taking no investment commission from clients but instead taking a share of the assets under management.
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