The financial planning arm of insurance consultants Jelf Group has reported a small loss for the six months to the end of March, as the company invests in preparing for the Retail Distribution Review (RDR).
The business, which accounts for 10% of the group's total revenues, lost £13,000 in the period on an EBITDA basis, compared with a £100,000 profit in the corresponding period last year.
Revenues were also lower at £3.5m compared with £3.9m in 2011, although Jelf said the underlying recurring income had improved.
It added the numbers were not unexpected as the company undergoes "considerable change" ahead of the RDR, which comes into force on 1 January next year.
It said management had reduced the number of advisers as it re-positions the advice it provides to clients.
Jelf Group has £483m in third-party funds on wrap and discretionary management mandates producing fund-based income. This was marginally down on £500m recorded at this time last year.
It said it advises on an additional £500m of client funds not currently managed in this way.
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