Falling subscriptions push Apfa to £30k loss

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Falling subscriptions fees from associate members pushed Apfa from profit to a deficit of £30,000 in the year to June 2015.

The trade body’s audited annual report shows it made a £30,080 loss compared to pre-tax profits of £29,253 over the same period in 2014.

Turnover also fell, from £797,842 in the year to June 2014, down to £722,041 last year.

However, staff costs fell – from £441,654 to £390,389 – as headcount dropped from 10 to 9.

The report also shows Apfa paid £70,268 to the Lighthouse Group in rent, while the advice firm had an outstanding balance of £13,333 in subscription fees.

Apfa director general Chris Hannant says: “We are not for profit, we are not there to make a massive surplus but we do aim to be a bit above each year.

“But things happen, support from some of the associate members has dropped off a bit, we keep a close eye on it and adjust our costs accordingly.

“Since I’ve been in the role I’ve noticed associates have dropped off slightly, I expect the effects of the RDR has played into some of the budget of providers.”

Associate members include Schroders, Zurich, Royal London and Aviva.

In 2013 Apfa returned to profit for the first time in two years with a surplus of £117,337 before falling 75 per cent in 2014.