Evelyn PartnersAug 17 2021

Tilney S&W assets up in strong first half year of enlarged group

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Tilney S&W assets up in strong first half year of enlarged group
Chris Woodhouse, chief executive at Tilney
BySonia Rach

Tilney Smith & Williamson has seen assets under management increase to £54.8bn in its first full half-year results since last year's merger.

In the results for the six months to June 30, Tilney Smith & Williamson reported a 7 per cent increase in its AUM, up from £51.2bn at December 31, 2020. 

This has more than doubled during the same period last year when it was at £25.6bn, prior to the merger with Smith & Williamson.

Tilney first announced the purchase of Smith & Williamson in September 2019, in a deal worth £625m.

However, following the announcement it faced regulatory hurdles and was in discussions with the Financial Conduct Authority in January 2020 to get the proposed takeover approved.

In August, the firm received shareholder approval from Smith & Williamson and in September it completed the purchase and renamed the business.

In the results published today (August 17), Tilney Smith & Williamson reported inflows of £3.2bn, representing 12.5 per cent of opening assets on an annualised basis.

This was up from H1 2020 when it was £1.4bn for Tilney alone. 

Net new business inflows were at £1bn, up from Tilney's £0.4bn last year.

Group operating income also increased 157.5 per cent to £261.9m, with Smith & Williamson contributing £139.1m.

The firm said the financial services segment generated £203.7m of operating income, compared to £101.7m last year.

The professional services segment, and the fund administration segment, both of which were created following the acquisition, generated £51.3m and £6.8m, respectively. 

Chris Woodhouse, chief executive at Tilney, said: “Following on from the merger of Tilney and Smith & Williamson last September, the first half of 2021 has been a positive period for the group, characterised by a combination of sharply rising equity markets and very healthy new business generation in both our financial services and professional services businesses. 

“Alongside strong organic growth, we made further progress with our M&A strategy with the completion of the acquisition of HFS Milbourne which added £376m AUM in the second quarter.”

He added: “We have a strong pipeline of new business opportunities across both financial services and professional services and also have an active hiring programme for additional talent across both divisions.

“Since the merger transaction completed, excellent progress has been made with the integration and we are also ahead of where we expected to be in realising the merger synergies. The design of operating models for central functions is complete and largely implemented.”