A failed attempt to buy rival IFA firm Moores Marr Bradley contributed to sharply reduced six-month profits at Berry Birch & Noble.
Profits plunged to £177,000 for the half-year to July 31 compared with £355,000 for the same period last year, a drop of more than 50 per cent.
Berry Birch & Noble paid £141,000 in professional fees for the aborted attempt to take over Milton Keynes-based Moores Marr Bradley.
The talks broke down in April after the companies had agreed a deal in principle.
BBN, which is listed on the Stock Exchange, says it is still on the lookout for acq uisitions.
Its mortgage division also performed poorly, with business down by 11 per cent. Berry Birch & Noble ref uses to give a figure for the amount of mortgage business written.
Company secretary John Cutting says: "The mortgage operation is the part of the business which has caused the reduction in profitability."
Berry Birch & Noble, with around 50 registered individuals in seven branches, says it is on target to meet its December 31 deadline for dealing with 90 per cent of priority pension review cases. The company would not reveal how many priority cases it has.
Founder directors Derek Berry and David Birch rem ain the biggest sharehold ers with a total stake of 20 per cent.