High director pay levels denied celebrity consumer advocate, Eddie Hobbs’ financial advisory firm a return to profit last year.
Newly-filed accounts for Hobbs Financial Practice (HFP) show that the company’s losses widened from €48,176 to €69,876. The firm — formerly known as Financial Development and Marketing (FDM) — counts Mr Hobbs and his wife, Mary, as directors. The two shared a pay pot of €589,847 in 2016. That was a slight decline, from €599,266 in 2015. In 2014, the pair paid themselves €559,068 and, in 2013, they shared pay of €652,144.
The loss for 2016 was a consequence of the directors’ decision to give themselves a high level of remuneration — lower pay for the directors would have brought the company into profit. The accounts show that the company is trading to expectations, despite the loss for the year and despite accumulated profits falling 29% to €167,324.
HFP specialises in a broad range of financial advice, including financial planning, pensions, and investment advice.
The company employs nine people, and staff costs — including directors’ salaries — totalled €829,365 last year. HFP’s website shows that clients who opt for the pure-fee only model pay €400, plus Vat, per hour. That model is only applied to detailed financial investigation and is usually used by companies. The firm offers lower fees for more normal work and fees are agreed with clients in advance.
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