Highlights include total client assets of the Group and its associate increasing £4.5billion to £15.1billion.
Commenting on the results, Ian Mattioli MBE, Chief Executive Officer, said:
“The first six months of this financial year saw the Group build momentum, having shown resilience in spite of the economic and political complexities that persisted throughout 2021. During the period, we proactively balanced securing good financial outcomes for our clients with ensuring the long-term sustainability of our business, remaining true to our purpose of putting clients first in all that we do. We are pleased to report further material progress towards our strategic medium-term goals, with total client assets now up 24.4% to a record £15.1bn (31 May 2021: £12.1bn). This also sees the Group pass a significant milestone, delivering on one of our previous strategic goals to manage more than £15bn of client assets.
“Revenue of £49.9m was 69% higher than the equivalent period last year (1H21: £29.5m) driven by positive performances in our pensions consultancy and administration, and investment and asset management operating segments.
“Pleasingly, and in support of improved organic growth trends, the number of new clients on-boarded in the first half and net inflows into the Group's investment and asset management services are ahead of the equivalent period last year. This renewed momentum reflects the success of new business initiatives and strength of existing client referrals, with organic revenue growth in excess of 11% for the period, our strongest performance since 2018. These initiatives, alongside our increasingly diversified service offering, have also generated an increased pipeline of new business enquiries.
“The eight acquisitions completed since 1 June 2020, including our two largest acquisitions to date: Maven and Ludlow, contributed £19.4m (1H21: £2.0m) of revenue in the period. The contributions from these recent acquisitions, organic growth and continued cost management resulted in adjusted EBITDA up 77% to £15.8m (1H21: £8.9m). Profit before tax of £3.3m (1H21 restated: £4.2m) was down 23% driven by increased acquisition-related costs of £2.6m (1H21: £0.1m), while adjusted profit before tax was up 96% to £14.1m (1H21 restated: £7.2m) after adding back acquisition-related costs, amortisation of acquired intangible assets of £3.3m (1H21: £1.3m) and deferred consideration on acquisitions recognised as an expense under IFRS 3 of £4.6m (1H21: £nil).
“We believe the benefits of operating a responsibly integrated business allows us to secure great client outcomes, controlling clients’ costs while delivering strong, sustainable shareholder returns over the long-term. The Board remains committed to growing the dividend, while maintaining an appropriate level of dividend cover. Accordingly, the Board is pleased to announce an increased interim dividend of 8.3p per share (1H21: 7.5p) up 10.7%.
“In addition to the positive contribution from recent acquisitions, the Group generated an increased share of profit from Amati of £0.9m (1H21: £0.4m), whose total funds under management had increased to £1,330.5m (31 May 2021: £1,308.1m) at the period end.
“Clients continue to need long-term advice and strategies more than ever before. We will continue to provide quality solutions, maintaining our focus on client service and continuing to adapt our business model to the changing market, integrating asset management and financial planning to build upon our established reputation for delivering sound advice and consistent investment performance, while providing value for clients.
“We are pleased by our performance in the first half of the financial year, which has seen the Group thrive. We plan to build on this positive momentum, advancing our key strategic initiatives: new business generation, growth through the integration of strategic acquisitions, developing new products and services, reviewing our processes and investing in technology to deliver an improved digital client interface and further operational efficiencies. Our trading outlook for the year remains in line with management's expectations and we believe the Group is well-positioned to grow, both organically and by acquisition. We are committed to delivering our ambitious growth strategy and in doing so create a business that remains responsibly integrated for the benefit of our clients and well-positioned to deliver sustainable shareholder returns”
Read the full report here.
