1043 IFA jobs could be lost

Analysis of the UK’s leading 1356 IFA companies found as many as three quarters will need to reduced their head count. One of the largest firms could see up to 211 jobs lost alone, Plimsoll warns.

It says 9% of the companies surveyed are already running at a loss and companies need to aim for at least £70,000 sales per employee in order to stay competitive.

Of the firms assessed, 164 ‘danger-rated’ companies, need to consolidate immediately and could see 30% of the workforce go as they try to stay in the market.

A further 335 companies need to “tweak” their business to maintain their profitability and improve their stability, the report found.

However, there is better news for the 857 companies currently leading the market with sales per employee figures of well over £120,000. These businesses are well-equipped to see out the next 12 months in good shape and are almost certain to prosper from their weaker competitors’ demise, Plimsoll says.

David Pattison, senior analyst, comments: “The 165 companies we have identified as in danger need to act now if they are to survive. It very important they review their entire business cost base and take action now to significantly reduce their outgoings.

“Whilst job losses are undoubtedly bad news for any company, such decisive action may be called for to guarantee the ultimate survival of the business- even if this means the business is 30 or 50% smaller than it was.”

The special edition of the Plimsoll Analysis exposes all the names, details and financial performance of the UK’s 1356 leading IFA firms. It also includes a future snapshot on each company demonstrating how each might survive this period of consolidation.

Copies of the analysis can be obtained for £350, by calling Clair Sherwood on 01642 626422 or emailing [email protected]

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