Positive Solutions reports pre-tax losses for 2009 in excess of £7m, due largely to a one-off multi-million pound tax hit.
The Aegon-owned national IFA experienced a total pre-tax loss of £7.36m last year, compared to a profit of £5.7m in 2008, despite profit margins remaining at 18%.
It says it used the strong financial position accrued in 2008 to write off a deferred £5m tax from 2005 linked to the accounting treatment of its now-defunct share option business, Prophitshare.
It also cited "a challenging year" of higher regulatory fees, including £1m paid to the FSCS for the industry's exposure to failed firm Keydata.
However, 2009 turnover also decreased, dropping 15% to £85.1m, due to a depressed housing market and a significant downturn in mortgage related activity, the company says.
Continued stock market volatility was another drag on profits as it led to lower demand for pension and investment advice.
The company also cited the impact of falling interest rates on its cash reserves as adding to losses, as well as one-off costs to develop governance and increasing regulatory compliance controls.
Earlier this year, it began a company-wide past business review and also installed a new training and competence framework which included fresh business checking requirements for new and existing partners.
Positive Solution chief executive Jim Reeve says: "2009 was a challenging year for the industry and for the Positive Solutions business.
"During the next 12 months, we will develop and introduce a range of IFA partner propositions enabling us to satisfy a broader range of advisory business models."
The cornerstone of future plans is a major development programme started last year to create partner and client websites, he says.
"These are being rolled out through 2010 and will form a communication platform enabling our IFA partners to provide a responsive and engaging advice service for their clients."
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First mentioned in Cridland Report
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