Fairstone Group  

Fairstone boasts turnover bump

Fairstone boasts turnover bump

Fairstone Group, the Newcastle-headquartered chartered financial planning consolidator, announced a 50 per cent boost to its turnover in 2017 as it continues to acquire new firms.

In the 12 months to the end of December, the firm's revenue increased to £47.6m, some £14.5m up on the previous year.

Adjusted operating profits (Ebitda) stood at £2.1m, a rise of £1.8m from a year earlier.

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Lee Hartley, chief executive of Fairstone, said the company had focused on delivering "sustainable, responsible growth" in 2017, and that its advisory and investment management businesses were operating profitably and with a "complete absence of cross-subsidisation".

Mr Hartley said Fairstone's growth had been largely supported by significant traction in the group's proprietary downstream buy-out (DBO) programme.

This programme sees smaller companies integrate with Fairstone, which supports their growth before acquiring them at a later date.

Mr Hartley said: "The DBO proposition continues to gain in popularity and has entered into a more mature phase of development demonstrated by the acquisition of five DBO firms in 2017 and an additional two completions early in 2018.

"There is a consistent acquisition programme in place which will see eight to 12 DBO firms being acquired each year."

In addition to the completed acquisitions, 10 firms joined the DBO programme in 2017 with a view to full acquisition within the next two years, the company said today. A further seven firms have also joined the DBO programme in 2018 so far.

A pipeline of more than 45 potential deals are being progressed, Fairstone added.

According to its accounts, available on the Companies House website, by June 2018, the company had 41,000 active clients.

The business cited a revenue mix of 73 per cent related to pensions and investment advice,
with the remaining 27 per cent sourced from corporate clients.

Over the 12 months, Fairstone's funds under management increased by 29 per cent to £5.3bn, while overall funds under advice rose by 97 per cent to £8.1bn.

The accounts show the firm made a post-tax loss of £280,000.