European Wealth slows pre-tax loss as funds soar

European Wealth slows pre-tax loss as funds soar

European Wealth Management Group saw its funds under management and full year revenue increase in 2014, as it edged closer to profit and almost halved the previous year’s pre-tax loss.

The group’s 2014’s results reveal pre-tax losses for 2014 of £203,000, 46 per cent less than the 2013 figure of £378,000. The wealth manager said the negative earnings continue to reflect “ongoing investment into the development of the business”.

Its results also showed that full-year revenue increased 16 per cent to £6.7m from 2013’s £5.8m. Funds under management also grew by 59 per cent to more than £1bn last year.

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Wider group results of parent European Wealth Group Limited, formerly EW Group Limited, group revenue rose substantially to £5.6m from £1.9m. Operating profit fell from £1.6m to £300,000, but the figures are skewed the “reverse” takeover in 2014.

Profit before tax and exceptional items for last year was £22,000 compared to 2013’s £1.56m and the group net asset position was £16.6m in 2014 compared to £8m in 2013.

John Morton, executive chairman of European Wealth, said: “Following the completion of the reverse last May, the group has continued its significant growth trajectory, funds under management and influence up by over 59 per cent in the year and revenues for European Wealth Management Group Limited were up by 16 per cent over the same period.

“We will continue to grow the business through a combination of strategic acquisitions, attracting revenue-generating individuals and organic growth. The investment into our expansion, combined with the one-off costs associated to the reverse, has inevitably placed pressure on our headline numbers in the short-term though I am pleased to report we are now making progress in stabilising those costs.

“Indeed, the board remain firmly of the view that a combination of an increased demand for the services the industry offers together with a continued consolidation can only provide an attractive opportunity for the continued development of the group.”