LONDON (Alliance News) - Harwood Wealth Management Group PLC on Wednesday reported a sharp rise in assets during 2018 in a year of "strong" growth driven by acquisitions.
The financial planner and discretionary wealth manager completed nine acquisitions during the year ended October 31.
Harwood's assets under influence at October 31 stood at GBP4.8 billion compared to GBP3.8 billion the year before, a 26% increase. The company's assets under management increased 42% in the same period to GBP1.7 billion from GBP1.2 billion.
The company said this growth was achieved against the "backdrop of an unpredictable market" which was "more volatile" than Harwood has experienced since its listing three years ago.
Harwood's discretionary fund management business, Wellian Investment Solutions, performed "strongly", increasing its assets under management by 56% to GBP977 million.
Harwood's advised investment management unit, IMS Capital, increased its assets under management by 19% to GBP698 million.
"It has been another year of strong growth for the group, with earnings before interest, tax, depreciation and amortisation achieved ahead of the board's expectations set at the start of the year. Our financial success demonstrates the efficacy of Harwood's three-pronged growth strategy and the benefits of building a recognised market position in a fast-consolidating industry," said Chair Peter Mann.
Harwood's pretax profit for the year increased 67% to GBP2.0 million from GBP1.2 million on a revenue increase of 26% to GBP32.7 million from GBP25.9 million.
Each of the company's three divisions - Financial Planning, Investment Management and Network
Services - reported a growth in revenue.
Mann continued: "The group's growth in revenue was driven by the completion of nine acquisitions over the period, as well as the impact of prior year acquisitions.
"Acquisitions are a key part of our strategy. We remain very confident a large pool of opportunities exists, many of which we expect to execute in 2019, continuing to grow the business in scale and capability."
The company increased its dividend 8.0% on the year before to 3.50 pence from 3.24p, in line with its dividend policy.
Mann added: "We are confident in the group's outlook, with Harwood well positioned to deliver further growth."
Shares in Harwood Wealth Management were up 2.0% Wednesday at 147.90 pence each.
