29th Jun 2016 09:36
LONDON (Alliance News) - Financial planning and wealth management firm Harwood Wealth Management Group PLC on Wednesday said costs related to its recent initial public offering in London pulled down profit in the half year to the end of April, but revenue and funds under management grew.
Harwood, which floated in AIM in March, said its pretax profit for the six months to April 30 was GBP14,000, down from GBP711,000 a year earlier due to exceptional costs related to its listing. Adjusted earnings before interest, taxation, depreciation and amortisation for the half, stripping out the one-offs, grew 8.7% year-on-year to GBP1.1 million from GBP980,000.
Revenue for the company increased 36% to GBP5.1 million from GBP3.8 million, driven by the 11 acquisitions Harwood made during the half. It has made a further two since the period end.
This drove assets under influence to GBP1.66 billion, up 36% year-on-year, while assets under management grew to GBP580.0 million from GBP276.0 million, more than doubling.
Harwood said the UK's vote to leave the European Union has created uncertainty in the wealth management industry, but the sector remains ripe for consolidation and it is considering further acquisitions, including some larger-scale targets.
"The group is profitable, cash generative at an operational level and has a strong balance sheet. Our business strategy is being implemented well, and we are deploying the net proceeds of the IPO towards this," said Chairman Peter Mann.
Harwood shares were untraded on Wednesday, having last traded at 110.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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