CompaniesJul 23 2014

Ashcourt Rowan on organic growth drive

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A focus on financial planning, focused recruitment and organic growth will mark the next financial year for Ashcourt Rowan, its chief executive has said.

Jonathan Polin said that, after a year of making strategic purchases, such as that of Generali Portfolio Management, which completed in January, as well as board reshuffles to position the senior management for growth, the advisory and wealth management firm was ready to focus on organic growth.

Mr Polin said: “Last year we wanted to get to real profitability and in the second half we achieved that, keeping costs under control and achieving £3.8m underlying Ebitda profitability.

“But we did not grow organically as much as I wanted to, and this has to be the focus this financial year.”

This includes getting new clients for the investment management and financial planning arms, together with a plan to grow its presence in Scotland, either in Glasgow or St Andrews, to boost its existing office in St Andrews.

It will also mean picking up some of the new business that is coming in as a result of the Budget changes - something that Mr Polin has described as “one of the greatest opportunities of a lifetime”.

He said: “It gives advisers and clients access to money that had been ringfenced, and by doing so it will drive wealth management multiples over the next few years. It also means that more people will need financial advice.”

An affinity tie-up with Care UK last year has also given Ashcourt Rowan a door to providing advice for clients and their families, Mr Polin said, and he expects to forge similar partnerships.

The company is still undergoing a management reshuffle and positioning for delivering that advice and wealth management service. On Tuesday, Ashcourt Rowan announced that Richard Sinclair, chief operating officer, has stepped down to assume a senior role at another company in an unrelated industry.

At this time, the group is not looking for a replacement and Mr Sinclair’s responsibilities will be split across the group.

Steve Haines, non-executive director, has also moved to assume an executive role as head of the group’s governance and risk functions, while also having a wider management role within the company, and Hugh Ward, chairman of the board, has been appointed as the new chairman of the Audit Committe.

But even at a more junior level, Mr Polin said he wanted to hire more specialist advisers and wealth managers. Yet he admitted: “I am picky when hiring people. I need to make sure these are rhe right people to sit in front of clients and give them the best advice.”

Analyst view

In a note from City analyst Nplus1 Singer Capital Markets, the team cited Ashcourt Rowan as having a “clear and well-defined path to achieving strategic goals and progress to date has been positive”. Despite acknowledging the effects of RDR as “persisting”, the note suggested Ashcourt Rowan was able to continue with any acquisition strategy, and said as a result, it retained its “buy” recommendation.