International wealth management firm Kingswood said it has grown assets under management and advice (AUMA) by £3.2bn to £8.1bn ($9.8bn, €9.3bn) after making 10 acquisitions in the UK last year.
According to the group’s FY2022 trading statement, the acquired businesses added 28 advisers, £11.8m in revenue, and £1.7bn in assets under advice (AUA) to the UK business.
The inorganic growth, combined with net inflows, are expected to boost profits to £11m for 2022, an increase of 80% year on year.
The completion of two further acquisitions, Barry Fleming Partners and Moloney Investments, in the first quarter of 2023, has added £700m of AuA and £8.3m of revenue.
Kingswood chief executive David Lawrence told investors to expect more of the same, with the report disclosing that the firm has four potential acquisitions in exclusivity, and a number of others in advanced negotiations.
Despite a strong performance in the UK, Kingswood’s board said the expected operating profit of £8.5m across the business fell below their expectations.
This was due to operating profits in the larger US capital markets business falling by 46% year on year, as quieter activity hit US investment banking revenues.
The trading statement also outlined a large one-off, high-margin US transaction that was expected to be reported in 2022 but will now be recognised in 2023.
In all, total revenues were expected to hit £143.6m, a 3.9% decrease year on year.
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