The merger between adviser trade body Apfa and the Wealth Management Association cost the WMA more than £61,000, accounts show.
The two trade bodies merged earlier this year to create the Personal Investment Management and Financial Advice Association, a move that was supported unanimously in a vote from Apfa members.
Accounts released today show that ‘exceptional costs’ of £61,380 were incurred by the WMA during the merger, including legal fees and professional fees for services such as rebranding. Apfa is due to release its legacy accounts later this year.
Turnover at the WMA increased 4 per cent to £2.2m on the back of an increase in workshops and seminars. Revenue from workshops, seminars and conferences increased by more than £100,000, offsetting a £29,000 fall in membership fees.
The organisation made a loss of £25,150 last year, and would have made a profit of £26,923 this year were it not for the merger costs, which pushed it to a £34,457 loss.
The WMA still has accumulated profits for £1.34m however.
“The cash reserves remain high enough to sustain trading in the immediate future,” the directors note in the accounts.
Travel expenses for WMA staff came in at £26,257, up slightly on the £25,944 in 2016.