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LONDON (Alliance News) - Wealth management adviser Kingswood Holdings Ltd on Monday reported a narrowed loss in 2018, though the company's core unit registered a decrease in assets under management.
In 2018, Kingswood's pretax loss narrowed to GBP3.8 million from GBP6.1million in 2017. The company's revenue decreased 5.4% to GBP8.8 million from GBP9.3 million the year before.
The company's assets under management & advice in its core business at the end of 2018 stood at about GBP800 million, behind the roughly GBP900 million reported at the end of 2017. Despite the decrease in assets under management & advice, Kingswood said Fixed Income assets in its core business increased by GBP63 million to about GBP700 million.
Kingswood said: "The last couple of years have seen a period of significant management and operational change within the group, with 2018 also impacted by a highly uncertain market environment and weaker investor sentiment resulting in an industry-wide slowdown in net inflows."
The company said its core adjusted loss widened to GBP3.0 million, compared to GBP1.0 million in 2017, on "a number of one-off factors".
A change in accounting method required the reclassification of previously reserved debt and acquisition costs, resulted in a GBP1.0 million negative impact. Senior staff departures cost the firm GBP500,000 and additional restructuring costs had a GBP800,000 negative impact.
Kingswood's administrative expenses increased 20% in 2018 to GBP11.0 million from GBP9.2 million.
"Since Patrick Goulding and I have taken over day-to-day management control at the board's request earlier this year, we have now implemented the significant changes that were originally planned. I am pleased with the future direction of the company and believe a strong foundation is now in place from which to grow the platform and add value for shareholders," said Chief Executive Gary Wilder.
Wilder added: "We have a strong competitive advantage with our integrated Wealth Planning & Investment Management platform. We plan to leverage the platform to its full potential and are looking to expand our current product offering with turn-key opportunities such as mortgages, cash management and lending products, including the launch of Kingswood labelled products in partnership with best in class industry expertise."
Shares in Kingswood were untraded Monday but last closed at 8.25 pence each.
