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Consolidator's profits up as it eyes more purchases

Consolidator's profits up as it eyes more purchases

Financial planning firm Harwood Wealth Management has posted gross profits of £4.9m for the first half of its year, up 63 per cent on the same period in 2016.

In the six months to the end of April, the company saw its revenue increase by 53 per cent to £7.8m.

Adjusted earnings before interest, tax, depreciation, amortisation and exceptional costs, which the company says it uses to assess its performance, was up 64 per cent to £1.8m.

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Peter Mann, chairman of Harwood Wealth Management, said: “These are strong results reflecting the ongoing success of our strategy to deliver profitable organic and acquisitive growth.

“In line with our strategy we will continue to make acquisitions and have a strong pipeline of potential opportunities.

“The market for financial advice is highly fragmented and with our strong balance sheet and cash reserves the board is confident that the group is well placed to continue its growth journey.”

During the six month period Harwood bought the client portfolios of two IFA businesses and the entire issued share capital of another for a total of £600,000.

In February the company also completed its acquisition of Network Direct Ltd, which Mr Mann said was a “major milestone” for Harwood.

Harwood has said the acquisition accounted for 94 per cent of the company’s growth in assets under influence from £1.7bn to £3.3bn.

The Aim-listed company completed 17 acquisitions in 2016 for a total consideration of £11.6m.

In April it raised a further £10m by issuing new shares to spend on acquisitions.

Chief executive Neil Dunkley said: “We continue to see a strong pipeline of high quality businesses looking to engage with us.

“Whilst we recognise that there have always been competitors in the market looking for acquisitions, we do not sense any change in the number of such competitors.

“As a well-funded business that has a proven expertise in efficiently buying businesses, we are an attractive choice for anyone seeking to sell their business and our increased profile since joining Aim has led to a greater number of potential vendors approaching us directly.”