National IFA LEBC made a £580,000 pre-tax loss for the year ending September 30, 2011 after spending £730,000 on a restructure of the business.
The £580,000 loss compares to a £62,000 profit the previous financial year.
The firm’s accounts show its turnover increased by 8 per cent to £10.2m compared to £9.5m the previous year.
A statement from chief executive Jack McVitie (pictured) says: “At the operating level, the company reports a modest improvement in profitability before exceptional items. However, it remains disappointing and reflects an underlying cost base which is no longer sustainable. Accordingly, the directors have implemented a number of measures to address this.”
The statement went on to say LEBC has returned to profitability in 2012.
In January, LEBC left Sesame for Tenet after 11 years due to “cultural differences” with the network. The accounts reveal Tenet has provided LEBC with a loan facility of up to £1.5m.
Since October 2010, four directors have resigned from LEBC.