Shrinking margins 'fuel IFA consolidation'

According to Plimsoll Analysis, larger companies have been surviving on “wafer thin” margins in recent years with most only making 1.6% or less. It says this compares with an emerging group of about 300 firms that have been reporting sales increases of well over 32% per year and margins as high as 15%. These “niche” market players are being targeted by the larger firms, Plimsoll says, in a bid to diversify and develop their businesses in the current climate. It adds a number of the smaller firms are also keen to be acquired as many have reached a critical point in their development. ...