Aifa says it expects to convert a £154,000 pre-tax loss into a profit of the same amount for its current financial year.
The trade body’s accounts for the year to 30 June, published this week, show Aifa made a pre-tax loss of £153,665 in 2011/12, compared to a £194,419 loss the previous year. Turnover, made up of member subscriptions and event income, fell 15 per cent from £1.6m in 2010/11 to £1.4m in 2011/12.
Aifa policy director Chris Hannant has refused to disclose membership numbers, saying only that there has been a “small decline” in annual subscriptions.
He insists the trade body is on track to make a profit in 2012/13.
Hannant says: “This is a look in the rear view mirror as of 30 June. It does not paint the dynamic picture that our costs are considerably down on what they were. We are already past the first quarter and in a position of surplus. We would expect to be in a significant surplus by the end of the year, ballpark to the tune of what we were negative last year.”
Hannant says the lack of a director general, following Stephen Gay’s departure in January, represents a “significant cost saving”. He said the Aifa council will keep the appointment of a director general under review.
The accounts show Aifa has a total of £83,660 in cash reserves and administrative expenses of £1.4m.
Hannant says: “Our auditors signed us off as a going concern and they are confident we have taken the requisite steps to put the business on a sound footing as at 30 June and for the future.”
Essential IFA managing director Peter Herd says: “Aifa is obviously suffering a decline in membership, which may be because it is becoming increasingly irrelevant.”