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Financial planning group Fairstone has seen a big rise in turnover but still recorded an operating loss as its growth journey continues.

The Boldon firm, which has a policy of acquiring smaller financial planning companies through its downstream buy out programme, saw its turnover rise from £47.8m in 2017 to £57.5m last year, with EBITDA staying almost unchanged at £2.5m.

The group recorded an operating loss of £95,000, though this was a reduction from the £712,000 it had posted 12 months earlier.

In the accounts, CEO Lee Hartley said that Fairstone “continues to deliver in line with its strategy” and had delivered “strong progress across all areas of the business”.

The company had seen an increase in recurring revenue of 53.6% while total revenue grew 20%. Client numbers increased from 48,000 to 57,000, with five firm joining the buy-out programme in 2018 and a further five in 2019.

Mr Hartley added: “I am delighted to announce that the group continues to make excellent progress against its core strategy and growth plan, with the trading and operational results in 2018 being ahead of forecast.

“In 2018 we delivered strong progress across all areas of the business. Revenue and adjusted EBITDA performance has been substantially ahead of the prior year in each channel and both our advisory and fund management businesses are operating profitably and with a complete absence of cross-subsidisation.

“A combination of organic growth and the success of our unique DBO programme, which reverses the traditional buy and build approach, is continuing to deliver exceptional results and to drive growth, with a series of deals with partner firms being completed at various stages within the financial year.

“Our considered approach, together with our proven business model and the significant financial backing that we have at our disposal, allows the management team and shareholders to look forward to 2019 and beyond in a positive manner.”

As well as its base in South Tyneside, Fairstone has a London office and now employs around 340 regulated advisors and 220 operational staff in 48 locations around the º£½ÇÊÓƵ.

This week Fairstone announced that Yorkshire firm Lofthouse Gate and London’s Mortgage Find had been fully acquired, adding £2.3m gross full income for the firm.