Adviser purchase adds £20mn to 7IM's revenue

Adviser purchase adds £20mn to 7IM's revenue
7IM’s chief executive, Dean Proctor

7IM’s profits before tax climbed 83 per cent last year, with recent adviser and wealth manager acquisitions playing a key role in the firm's performance.

In annual results published today (May 24), 7IM saw profits hit £9.5mn in 2021, compared to £5.2mn a year earlier.

In addition, revenue increased by 31.6 per cent in 2021, climbing to £92.3mn from £70.1mn in 2020.

Of the investment platform's £92mn revenue, £20mn came from London IFA Partners Wealth Management, which 7IM bought in October 2020 alongside Find a Wealth Manager.

The previous year, revenue from PWM had totalled just £4mn, less than a quarter of the revenue the advice firm added to 7IM in 2021.

When the platform provider's acquisition of PWM closed, 7IM made it clear advisers would stay whole-of-market and independent with no incentive for them to use 7IM products.

7IM said the integration of these acquisitions - which operate as independent companies - were “key contributor[s]” to its performance last year.

Find a Wealth Manager made up a significantly lesser £982,000 of the firm's overall revenue last year.

“Despite all the change and challenges of last year, I’m immensely proud that, as a firm, we have been able to continue to deliver on our strategic initiatives,” said 7IM’s chief executive, Dean Proctor.

“Our focus at 7IM remains the same as when 7IM was first founded 20 years ago – and that is to put our clients’ interests at the heart of everything we do.”

The company’s assets under management grew £2.7bn during 2021, to £21bn.

Cost of sales increased by around 70 per cent, from £15.1mn to £25.6mn, while overhead costs climbed £7.3mn, to £57mn.

The firm had 28 of its own funds at the end of 2021, the same number it ended 2020 on. The net asset value of these funds sat at £5.2bn in December, around £70mn less than they were valued at the end of 2020.

This year, Proctor said the platform will focus on investing in its people, technology and digital services, as well as its sustainability endeavours, which saw the launch of its ‘Responsible Wealth Model Portfolios’ in December.