Half of IFA firms in profit fall

clock

Half of IFA firms are facing a drop in profits this year as they focus more on bringing in sales at any cost rather than company fundamentals.

Research from Plimsoll Analysis found 20% of the 1356 IFA firms analysed are currently selling at a loss with profits down for 50% of companies compared to last year. It found while sales in the market continue to grow, although at a slower pace than last year, this buoyancy is distracting some directors from other areas of the business which require urgent attention. Around 17% of companies are in more debt now than they were 12 months ago and 164 companies are currently rated as a high risk of failure in Plimsoll’s updated analysis of the IFA sector. David Pattison, senior analyst o...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

March 2024: Month in review with deputy editor Jenna Brown

March 2024: Month in review with deputy editor Jenna Brown

Take a look at some of the news and feature highlights of the last month

Jenna Brown
clock 28 March 2024 • 5 min read
Wren Sterling adds £265m in client assets in latest deal

Wren Sterling adds £265m in client assets in latest deal

First advisory firm purchase of 2024 for national financial planner

Jenna Brown
clock 28 March 2024 • 1 min read
Consumer Duty Alliance looks to attract advice industry talent

Consumer Duty Alliance looks to attract advice industry talent

New Talent Alliance will be chaired by M&G Wealth Advice MD Tom Hegarty

Isabel Baxter
clock 27 March 2024 • 2 min read