The company reported to the Stock Exchange that it “experienced a challenging first six months”.

Revenue did rise, however, to £1.70 million, up 11.8% from £1.52 million in the same period last year. Parent firm European Wealth Group said EFP had added £0.46 million to turnover in the six months under review.

A European Wealth Group statement read: “Whilst the like for like turnover within the financial planning business is disappointing, your Board is confident that the second half of the year should see a recovery in the revenue figures.

“The performance in the first 6 months was impacted by a short term reduction in the amount of new business generated by the financial planners whilst new procedures were being introduced and the ISM and Bells acquisitions were being fully integrated within the existing financial planning business.”

The statement added: “Your board is pleased to note that the amount of revenue that is recurring within EFP has increased to £1.34 million or 79% (H1 2015: £0.98 million or 65%).

“It is the Board's opinion that for any financial planning business to be successful in the future, it is imperative that the amount of recurring revenue is as high as possible thus providing the cash flow to build an appropriate and robust offering to clients providing an added value service for which the client base is willing to pay on-going fees.”

The acquisition of both ISM and Bells over the last 12 months played a significant part in increasing the amount of recurring income, the report stated.

Both acquisitions have now been integrated within EFP’s existing structure with the ISM team moving into the head office in Austin Friars and the financial adviser from Bells being based in our office in Wokingham.