• Press Releases

State of the Nation: How are you managing rising costs in your business?

15th February 2023

The external environment is characterised by high inflation which manifests itself in rising fixed and variable costs including wages. Where possible, we have attempted to pass on to our clients some of the increased costs but are mindful of the price elasticity of demand for our services which constrains the amount by which prices can be increased. We value the loyalty shown by our clients during the previous recent challenges and therefore try, where possible to restrict passing the rising costs on to them. As with any business there has to be a combination of methods used to soften the impact of rising costs.

With a view to limiting price increases we are addressing the efficiency of our production function, driving costs down through collaboration, inclusivity and improved systems and processes. For example, we are replacing manual methods with technology enabled methods and seeking offshore solutions to reduce wage costs.

We are investing in digital and more traditional marketing methods to drive sales and seeking to replace less profitable with more profitable work.

By investing in adjacent businesses even during the lockdowns, we have experienced significant and profitable revenue growth in the recent past. We have also continued with our buy-and-build strategy and recently acquired an earnings accretive portfolio of clients which has contributed to improve profitability.

We have seen a significant uplift in AUM in the last few months due to new clients being won with additional funds being invested and market conditions improving, which will add to revenue going forward.

Did you know?

PK Group are also featuring on the Citywire website. Take a look at the article ‘Our service charge is up 120%! How five advisers are handling rising bills‘ by clicking here.

For more information, please don’t hesitate to contact PK Group on +44 (0)20 8334 9953 or via welcome@pkgroup.co.uk

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