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IFP makes £17k pre-tax loss in 2013

The Institute of Financial Planning made a loss before tax of £17,589 in 2013, compared to a pre-tax surplus of £60,828 in 2012.

Its annual results show the IFP branded business made a loss of £20,296 while the subsidiary FPSB UK, which provides professional qualifications, made a profit of £2,706.

The IFP, which operates on a not for profit basis, says the deficit is “disappointing” after four years of profitability. But it says the deficit was well covered by its reserves.

The organisation last year gained 244 new members, taking its total from 1,802 to 2,046 members.

IFP chief executive Steve Gazzard says increased premises costs, and a decision to “continue to invest in service provision and marketing for membership growth”, contributed to the loss.

The professional body, which is based in Bristol, moved to new headquarters in January.

Gazzard says: “Our primary aim for the year was to achieve net membership growth, whilst also seeking to grow the numbers of accredited financial planning firms and to increase the take up of the accredited paraplanner and certified financial planner professional designations. I’m pleased to report that all of this was achieved.”

IFP president Rebecca Taylor adds: “Nick Cann, IFP’s long-standing chief executive, suffered a major stroke in March 2013 following which he has been unable as yet, to return to work.

“This has resulted in a reorganisation of the accountabilities of staff in the IFP and FPSB UK teams and additional costs being incurred as well as workload.

“Steve Gazzard has done a fantastic job in stepping up to cover the chief executive role in Nick’s absence, in very difficult circumstances. I am also very pleased to report that Nick Cann’s recovery continues steadily.”

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. Phil Billingham 20th August 2014 at 1:23 pm

    Irritating. But not fatal

    Onwards and upwards this year then

  2. The key thing here is “The IFP, which operates on a not for profit basis,” They obviously operate good cashflow modelling, as a band of plus or minus these sort of figures year on year means they are keeping budgets under control, but just one or two extra hirings off staff or misalignment can make the difference over sick or maternity/paternity pay and cover can have this sort of effect..

  3. A temporary glitch.

    What is this as a percentage of turnover? A rounding error most likely. With a good positive cash flow thanks to SPS. A ten quid hike in the SPS fee will cover this – no problem.

  4. E L Wisty (an only twin) 20th August 2014 at 3:29 pm

    I agree with the previous comments, as I’m sure that people would be whining if the IFP was making a mint from the membership fees.

    All sounds pretty hunky dory, and delighted to hear that Nick continues to recover.

  5. Well there you go, IFP is a “not for profit” organisation

    Does what is says on the tin !!

  6. Not surprising as IFP does a good job with limited resources with an excellent management team.

    It’s now up to the members and fast establishing ‘super firms’ to spend a little more of their profit, in part generated by association with the IFP brand, to help!

    The not for profit moniker does not mean we can’t empower the IFP to lead the charge on consumer awareness, engage the FCA and FSCS in a greater understanding of the reduced risk IFP members pose.

    Taking the fees from certain consolidators of risk, and we all know who they are, and giving them the use of the IFP brand is not the correct approach, and should be resisted.

    Should be an interesting AGM, and of course only those running perfect businesses will feel able to criticise!

    Excellent that Nick continues his progress.

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