Cavanagh Group’s profits before tax plunged by 87 per cent last year from 1.5m to 207,763.
The IFA firm had to write down 571,739 compared with just 50,000 in 2007 while revenue per adviser fell from 273,000 to 233,000.
The firm says its plans to grow organically during 2008 were hit by economic conditions. It says being cautious in its expansion plans and reducing overheads through the redundancy programme ann-ounced last December helped it mitigate the worst effects of the downturn.
Cavanagh expects to remain profitable throughout this year, adding that it will consider acquisitions where it can see “clear benefits”.
Chief executive Andrew Fay says: “The group’s results for the first quarter of the new financial year coupled with the business opportunities available to Cavanagh indicate that the group will remain profitable through 2009.”