Companies 

Harwood spends £1.8m on three acquisitions

Harwood spends £1.8m on three acquisitions

Harwood Wealth Management is set to pay £1.8m for three advice firms as the company continues its acquisition spree across the UK. 

In a statement today (July 31) the wealth manager announced it had exchanged contracts to purchase Southend on Sea-based Goldwyns Wealth Management Limited and Portsmouth-based Andrew Routley Pension Limited. 

The deals are expected to complete in October and December, with Harwood set to pay £800,000 for Goldwyns and £600,000 for Routley. 

The wealth manager also announced the completed acquisition of Patricia Hodge IFA for £400,000. 

For all three of the deals Harwood will pay 50 per cent of the purchase price on completion and a further two instalments of 25 per cent on the first and second anniversaries of completion, depending on the results. 

Peter Mann, chairman of Harwood Wealth Management, said: "In line with our strategy, we continue to make quality acquisitions and I am pleased to welcome the staff and clients of Goldwyns, Routley and Hodge to Harwood.

"We continue to see a healthy pool of acquisition opportunities ahead of us and, as communicated at the group's interim results, are working on several acquisitions at various stages of progress."

Last month Harwood announced a 74 per cent increase in its pre-tax profits for the first half of the financial year and confirmed it had completed, or was in the final stages of completing, seven acquisitions at an estimated cost of £4.3m. 

Speaking at the time chief executive Alan Durrant said the company had a £7m pot for further acquisitions this year, after agreeing a banking facility to fund further deals at the beginning of May. 

Mr Durrant said he looked for "recurring revenue" in the advice firms purchased by Harwood to ensure the company had "predictability". 

rachel.addison@ft.com 

What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know.