Towry posts a record profit

Wealth advisory firm Towry has reported a 29 per cent increase in discretionary assets under management (AUM) to £4.5bn at the start of this year, up from £3.5bn in the first half of 2010.

A 34 per cent improvement in the firm's earnings before interest, taxes, depreciation and amortisation (Ebitda) margin and 9 per cent increase in revenue was also posted for the first six months of this year.

A new four year revolving credit facility agreement was signed on 30 June 2011.

Andrew Fisher, chief executive of Towry, said: "The first half of 2011 has been a further period of growth for Towry and we look forward to the second half as we retain our ambition and conviction of becoming the leading firm of wealth advisers in the UK.

"Our independent wealth advice and independent investment management services continue to attract new clients, evidenced by the continued increase in total assets under management.

"We continue to support the FSA's Retail Distribution Review and aim to lead the wealth advice industry by delivering on our aims of offering outstanding independent wealth advice and independent investment management services to our clients.

"Our fee-based advice and high level of professionally qualified advisers means that the business is well positioned for RDR compliance ahead of 2013.

"We are confident of producing further new AUM inflow and a strong performance for the financial year as a whole, against a background of increasing market volatility and demands of regulation."

During the first half of this year Towry has been in the high court, challenging IFA firm Raymond James.

Raymond James stands accused of helping former Edward Jones advisers to solicit clients following the latter's takeover by Towry, has confirmed that it changed its recruitment process when it hired advisers from Edward Jones.

During the claims case brought by Towry against seven former Edward Jones advisers and Raymond James, Jason Cherriman, business development consultant for Raymond James, confirmed that the frequently asked questions part of the RJ proposition had been changed for the specific context of EJ advisers.

Mr Cherriman said many EJ advisers had questions about the Raymond James proposition so Raymond James had put a number of measures and checks in place to protect and monitor against potential breaches of contract.