IFA support group Tenet made an overall pre-tax loss of £1.6m for the 12 months to October last year, with development costs for its investment management platform a drag on profits.
However, the firm's overall sales increased from £76.3 to £79.1m, while the Tenet Limited sub-group (including TenetConnect) returned an operating profit of £1.9m.
Tenet cites "market challenges" and development costs for Sinfonia Asset Management as some of the causes for the overall loss to 30 September.
Meanwhile, the firm's cash balances remained largely unchanged at £27.8m.
In the previous year, Tenet announced pre-tax profits of just over £1m on revenues of £76.4m.
Chief executive Simon Hudson says: "The investments in our ongoing transformation restructure, the development of a market-leading technology platform and the provision of substantial support for our subsidiary businesses were comfortably absorbed by our net asset base, but naturally impacted on the group's performance.
"Tenet's financial strength is amongst the best in the IFA sector and allows the group a level of latitude in determining its direction and preserving its standards which some competitors cannot afford.
"We remain one of the pre-eminent and most financially secure distributors of retail financial products in the UK and look forward to responding positively to developments in the market during 2011."
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected