In Focus: Profitable advice business  

Kingswood's revenue soars 488% after string of acquisitions

Kingswood's revenue soars 488% after string of acquisitions

Kingswood saw its revenue soar 488 per cent last year as it benefitted from a string of acquisitions.

The wealth and investment management firm saw total revenue rise to £149mn in the year to December 31, with 87 per cent of revenue in the UK recurring.

The group turned its consolidation efforts to the UK last year after posting a 646 per cent jump revenue in the first half of 2021, which it attributed to acquisitions and growth in the US.

Assets under management for the year jumped to £6.8mn from £5.9mn, and the number of advisers at the firm rose from 64 last year to 70.

Chief executive officer of Kingswood, David Lawrence, said despite the general economic uncertainty, the UK wealth management sector continues to exhibit strong long-term growth characteristics.

“The so-called 'advice gap' represents a significant opportunity for firms to provide accessible advice to clients that are either under-served or in many cases unserved,” he said. 

“The need for financial advice has never been greater and in this sense firms such as Kingswood can help fulfil what I believe to be a societal need.”

Acquisition drive

Last year the group acquired Admiral Wealth Management, Smythe and Walters, Money Matters (North East), and Metnor Holdings (compromising Novus Financial Services and Iboss AM), adding £2.4mn of annual profit and £1.8bn in assets under management overall. 

Then in December it issued £3mn in shares in an effort to "accelerate the next stage" of its growth strategy.

So far in 2022 it has acquired a further five businesses, including Allots Financial Services, Joseph R Lamb Financial Advisers, DJ Cooke Life and Pensions, AiM Independent Financial advisers and Vincent & Co.

Lawrence said a further eight acquisitions are in exclusive due diligence and are due to complete in the third quarter this year.

He said the purchase of Iboss is a “game changer” for the group.

“It offers a stronger central investment proposition, provides an independent open market distribution channel to a growing number of IFA's across the UK and creates exit strategies for wealth management businesses,” he explained.

“All three business development opportunities are gaining traction in 2022.”