11th Dec 2015 08:03
LONDON (Alliance News) - European Wealth Group Ltd on Friday warned that turnover is expected to be behind forecasts, which could hit its earnings before interest, tax, depreciation and amortisation for the second half of 2015.
The wealth manager was EBITDA positive in the first half of its financial year, but had cautioned of a "more challenging" second half of the year.
Funds under management amounted to GBP1.2 million on November 30, the group said, up from GBP1.08 billion on June 30.
Despite the increase in funds under management, European Wealth said progress on attracting new funds has been slower than expected.
"Whilst the cross selling between the divisions of the group are showing a material improvement, many of the new revenue generators are taking longer to build an established client base than we had originally anticipated which together with the subdued trading volumes in global stock markets has resulted in our wealth management division being behind budget," European Wealth said in a statement.
Meanwhile, it is taking longer to complete the acquisition of Xcap Nominees, a deal which was revealed at the end of November, although the delay is expected to be resolved "soon".
"The foundations that have been put in place during the course of 2015 are expected to deliver growth in the next 12 months as the group continues to build on its original strategy of organic growth, acquisition and the attraction of revenue-generating staff," European Wealth said.
By Samuel Agini; [email protected]; @samuelagini
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