Harwood Wealth Management Group said it continues to pursue its strategy of acquisitive and organic growth, and that 2017 results show very positive progress in revenue, assets under management (AuM) and adjusted EBITDA*.
- Assets under influence (AUI) up 81 per cent to £3.8 billion (2016: £2.1 billion)
- Revenue up 123 per cent to £25.9 million (2016: £11.6 million), with the newly acquired Network Direct contributing £9.8 million of this
- Gross margin of 43 per cent (2016: 61 per cent). Gross margin excluding Network Direct was 65 per cent
- Profit after tax of £0.7 million (2016: £0.1 million)
- Adjusted EBITDA* is up 59 per cent to £4.3 million (2016: £2.7 million)
- Net cash generated by operations of £3.7 million (2016: £2.4 million) and total cash balances at the period end of £19.0 million (2016: £10.5 million)
- Seven acquisitions completed during the period for an aggregate consideration of £2.3 million
- Successful placing in April 2017 raising £10.0 million after expenses to continue the group’s acquisition strategy
*Adjusted EBITDA is earnings before interest, taxation, depreciation, amortisation and exceptional costs. It is a non-IFRS measure which the Group uses to assess its performance and it is also commonly used as a performance measure by market commentators.
Commenting on the results, Chairman Peter Mann said, “Harwood has reported another strong year of progress, driven by both organic growth and the contributions of acquisitions, underpinning the strategy of strong financial services advice revenues, good quality investment performance and increasing assets, and completing further acquisitions.
“The group is highly cash generative, and I am pleased to announce that we are recommending the payment of a final dividend of 2.24 pence per share, subject to shareholder approval at the company Annual General Meeting on the 18 April 2018. The final dividend will be paid on 11 May 2018 to shareholders on the register at the close of business on 27 April 2018.
“Overall, the progress made since the company’s IPO in March 2016 indicates a strong outlook for the next financial year.”