Tough markets are taking their toll on adviser firms with 151 in danger of extinction unless they make significant changes, according to a report by industry analysts Plimsoll Publishing.
The study of the UK’s largest 1368 IFA firms found zero growth, sliding profits and escalating debts have pushed a third to the brink of failure. Numbers for firms in the ‘danger’ zone are stark with profit margins falling to only 1% of sales, and the majority of companies making a loss. Most firms in this area are taking on debt at an alarming rate simply to cover costs, the report found. Plimsoll rated each of IFA firms into one of five financial ratings based on their overall financial performance. Ratings are as follows: Strong 868 ...
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