As part of the study Plimsoll rated each of the UK’s largest 1000 adviser companies into one of five ratings based on their overall financial performance.
While 621 firms were rated as strong, delivering excellent performance, 95 firms were rated as good and 90 were described as mediocre and needing improvement.
Sixty-four firms were rated as being in a weakened financial position and 130 firms’ survival is now in question, according to Plimsoll.
Plimsoll says the 621 firms rated as strong have seen sales increase by 3.6 per cent on average, profit margins sitting at an average of 10.3 per cent and the removal of debt.
Senior analyst David Pattison says: “It was no real surprise to see the high number of companies on the danger list, given the current economic crisis affecting the independent financial advisors industry.
“However we were very surprised to see the high number of excellent businesses making it on to the strong list. I think these firms have really upped their game in these difficult times and they are concrete proof that necessity is the mother of invention.”