The loss of financial advisers at Foster Denovo contributed to the company swinging into the red during 2015.
According to the company’s annual report, Foster Denovo made a loss before tax of £1.8m for 2015 compared with a £1.3m profit in 2014.
The report stated this is because during 2015 revenue and productivity fell because the number of financial advisers at Foster Denovo decreased from 76 to 73.
In the report chief executive Roger Brosch said: “The loss of a number of financial advisers at the end of 2014 and DWP-led changes in the way in which employee benefits business is remunerated resulted in the company generating total revenues of £17.7m.
“This reduction in revenue contributed to the loss before tax for the year of £1.85m.”
Revenues in 2014 had been £23.4m and average productivity during the year fell by 11.3 per cent to £208,000.
However it did increase across its non-employee benefits advisers by 7.72 per cent to £190,000.
According to its annual report one of the reasons for the drop in adviser numbers was because some advisers had taken non-advisory roles within the business.
In 2014 the number of advisers at Foster Denovo dropped from 90 to 76, according its annual accounts for that year.
During 2015 Foster Denovo reached a retirement advice referral deal with Friends Life and went into partnership with professional services group Optionis.
In January the national firm made director of compliance Jane McTigue redundant, but confirmed four new advisers had recently joined.
In March Mr Brosch told FTAdviser his company is being forced to acquire firms to find quality IFAs.
He said he was in talks with five or six firms and the business was in a strong balance sheet position to make acquisitions.
