AIM-listed adviser sees profits fall amid cost of IPO

AIM-listed adviser sees profits fall amid cost of IPO

Harwood Wealth saw its profits hit by the cost of floating on the Alternative Investment Market last year and by a large number of acquisitions.

The Hampshire-based company made a profit of £371,000 during 2016, down from the £1.15m profit it made the year before.

It said this was because of £336,000 of "exceptional costs" relating to its initial public offering and acquisitions which in 2015 had not existed.

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During 2016 Harwood Wealth made 17 acquisitions, spending a total of £11.7m and pushing its assets under management up by 151 per cent to £693m.

Peter Mann, chairman of Harwood Wealth, said: "It has only been 10 months since we listed and we have made considerable progress, as demonstrated by this strong set of results.

"We listed in order to be able to access capital to facilitate the next stage of our development through acquisitions and it is extremely pleasing to be able to report that we completed 17 acquisitions during the period.

"The various political and macro events of 2016 highlight the need for good quality financial planning which presents us with a fantastic opportunity to grow our business.

"This, coupled with the various structural changes that have been taking place within our industry which result in a numerous potential acquisition targets, leaves us looking to the future with confidence."

Last year Harwood Wealth said its listing on the Aim had allowed it to raise £10m to spend on acquisitions.

In May 2015 the company bought Wellian Investment Solutions to expand its multi-manager offerings and in today's results Harwood Wealth said the acquisition was responsible for growing its AUM by £284m.

The company's revenue increase by 47 per cent to £11.6m.

Harwood Wealth was founded in 2001 under the name Compass Wealth Management by Neil Dunkley who is joint chief executive with Alan Durrant.