CompaniesOct 15 2012

Moneygate sets sights on 24 acquisitions in next 12 months

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IFA consolidator The Moneygate Group made a loss for the year ending 31 December 2011 of £2.1m and has net liabilities of £109,000, according to its latest accounts, but the group insisted that “this was in-line” with its business plan as it announced plans for a further 24 acquisitions.

In its annual reports on Companies House, the group said that it has the continuing support of its shareholder base. As at September 2011, a £5m facility was made available from one investor group and, of this, only £560,000 has been used to date to provide for working capital.

Between October 2011 and September 2012, Moneygate completed 17 acquisitions. In terms of assets, Moneygate currently has around £1.7bn of client funds under influence within the group, of which around £300m is classed as funds under management.

The business currently has heads of terms agreed under the ‘deferred buyout’ model with a further 24 IFA firms which together represent £23m in turnover, £2.1bn of FUI and around £450m of FUM. Moneygate said in its annual results that it is “hopeful” that all of these deals can be concluded over the next 12 months.

The group also announced that it will be launching two complimentary business lines over the next nine months. The core advisory business will be rebranded Fairstone Financial Management, while a new asset management channel will be branded Marketstar Investment Management and a new self-service channel will be branded Directif Financial Solutions.

The group said that it has walked away from three acquisitions where “significant contingent liabilities” were discovered in connection with historic advice.

Moneygate said it is “proud to state” that there is no exposure within the group linked to the mis-selling of Arch Cru or Keydata and this puts it in a “uniquely advantageous” position.