Our latest Investing Matters Podcast episode with QuotedData's Edward Marten has just been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksHW..L Regulatory News (HW.)

  • There is currently no data for HW.

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Acquisition

30 Aug 2016 07:00

RNS Number : 3600I
Harwood Wealth Management Group PLC
30 August 2016
 

This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.

Harwood Wealth Management Group Plc

("HWMG" or the "Company")

Acquisition of Network Direct Limited

The Board of HWMG (the "Board"), a leading UK based financial planning and discretionary wealth management group, is pleased to announce the acquisition of Network Direct Limited ("NDL"), a national network of financial advisers based in Wolverhampton, West Midlands for a maximum total consideration of up to £4 million, of which £1 million is payable upon completion (the "Acquisition"). The Acquisition is subject to Financial Conduct Authority ("FCA") approval.

Highlights

· Acquisition of NDL for a total consideration of £4m, of which £1m is payable at completion with the balance payable based on the performance of NDL over the next 5 years

· NDL has a network of 107 financial advisers with assets under influence ("AuI") of £1bn

· Acquisition extends HWMG's reach nationwide

· Aims to focus on revenue synergies from NDL advisers leveraging HWMG's existing investment solutions

· Following completion of the Acquisition HWMG's AuI will be c.£3bn

· NDL is the Company's most significant acquisition to date and demonstrates continued execution of HWMG's strategy

Peter Mann, Chairman of HWMG, said: "We are extremely pleased to be able to announce this key strategic acquisition. We anticipate that the Acquisition will enable us to further leverage our existing investment solutions to the benefit of NDL's advisers and clients, and also that it will enable us to expand our reach across the UK where there is a growing market for the delivery of quality investment management and advice. We welcome the NDL team and advisers to the group, and look forward to working with them to deliver fully integrated investment solutions to their clients."

Background

NDL is a network of financial advisers based in Wolverhampton, West Midlands, with 107 advisers spread across England, Wales, Scotland and Northern Ireland. The acquisition brings an additional c.£1bn AuI. NDL is being sold by its principal shareholders, Willian Wynn, Jenifer Schwartz, Brian Raymond, Richard Simon and Leslie Dennis Lee, together with various other minority shareholders.

Following receipt of FCA approval, the Acquisition will increase the Company's total AuI to approximately £3 billion from the £1.65bn announced at the Company's recent interims.

For the year ended 31 May 2015 NDL reported gross revenue before pay aways of approximately £10.1 million (unaudited) and was broadly break even (£24k loss before tax) (unaudited). The net assets of NDL as at 31 May 2015 were approximately £64k (unaudited). NDL's advisers do not currently have access to a dedicated suite of investment products and, as such, the Board aims to grow the NDL business by extending HWMG's provision of investment and pension advice, management and administration to the clients of NDL. In so doing, the Board intends to provide NDL's advisers with a more efficient investment solution to their existing client base.

NDL's fee model

Adviser firms within NDL's network pay a fee to NDL depending on the number of advisers within their business and the Board believes that this creates a relatively resilient income stream for NDL going forward since the resource required to service the assets remains the same regardless of fluctuations in AuI/AuM.

Consideration

The maximum consideration payable for the Acquisition will be £4 million, based on the performance of NDL over the next 5 years. It is estimated that a further £250k of capital will be injected into NDL by the Company at completion to ensure capital adequacy post-acquisition.

The consideration is to be satisfied through cash. Initial consideration of £1 million has been paid from the Company's existing cash resources. Further deferred consideration of up to £3 million will be payable in cash over the 5 year period following completion, depending on the quantity of the existing AuI which are converted into assets under management ("AuM") over the 5 year period post-completion.

 

 

 

Enquiries:

Harwood Wealth Management Group Plc

Peter Mann, Chairman 07802 288554

www.harwoodwealth.co.uk

 N+1 Singer 020 7496 3000

(Nominated Adviser and Broker)

Alex Price, Aubrey Powell, Alex Laughton-Scott

Victoria Sheridan Consulting 020 8123 3302

Victoria Sheridan 07719 414283

Caroline Villiers 07808 585184

About Harwood Wealth Management Group Plc

HWMG is the parent company of a leading UK based financial planning and discretionary wealth management group focused on the provision of investment and pension advice, management and administration to its clients through a vertically integrated model.

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
ACQPLMMTMBBTTJF
12
Date   Source Headline
9th Mar 20207:30 amRNSSuspension - Harwood Wealth Management Group plc
6th Mar 202012:17 pmRNSCourt Sanction of Scheme of Arrangement
3rd Mar 202011:20 amRNSForm 8.5 (EPT/RI) Harwood Wealth Management
2nd Mar 20201:09 pmRNSForm 8.5 (EPT/RI) Harwood Wealth Management
28th Feb 20208:57 amRNSHolding(s) in Company
26th Feb 20204:47 pmRNSNotice of Court Hearing
26th Feb 202011:03 amRNSForm 8.5 (EPT/RI) Harwood Wealth Management
26th Feb 20209:35 amRNSForm 8.3 - [HARWOOD WEALTH MANAGEMENT GROUP]
25th Feb 202010:40 amRNSForm 8.5 (EPT/RI) Harwood Wealth
25th Feb 20209:15 amRNSForm 8.3 - [HARWOOD WEALTH MANAGEMENT GROUP]
24th Feb 20205:13 pmRNSSatisfaction of FCA condition
21st Feb 202010:15 amRNSForm 8.5 (EPT/RI) Harwood Wealth Management
17th Feb 20207:00 amRNSANNOUNCEMENT REGARDING THE SCHEME TIMETABLE
12th Feb 20202:32 pmRNSResults of the Court Meeting and General Meeting
12th Feb 202012:05 pmRNSForm 8.5 (EPT/RI)
6th Feb 202010:29 amRNSForm 8.5 (EPT/RI) Harwood Wealth Management
5th Feb 202012:03 pmRNSForm 8.5 (EPT/RI) Harwood Wealth Management
5th Feb 202010:09 amRNSForm 8.5 (EPT/RI) Harwood Wealth management
30th Jan 202011:02 amRNSForm 8.5 (EPT/RI) Harwood Wealth Management
27th Jan 20208:51 amRNSForm 8.5 (EPT/RI) Harwood Wealth Management
21st Jan 20209:03 amRNSForm 8.5 (EPT/RI) Harwood Wealth Management
20th Jan 20207:00 amRNSPublication and Posting of the Scheme Document
15th Jan 202012:06 pmRNSForm 8.5 (EPT/RI)
15th Jan 20209:19 amRNSForm 8.3 - Harwood Wealth Management Group PLC
13th Jan 202011:37 amRNSForm 8.5 (EPT/RI) Harwood Wealth Management
13th Jan 20209:09 amRNSForm 8.3 - Harwood Wealth Management Group PLC
9th Jan 202011:53 amRNSForm 8.3 - Hurst Point Topco Limited
9th Jan 202011:53 amRNSForm 8 (OPD) Hurst Point Topco Limited
9th Jan 20207:00 amRNSForm 8 (OPD) Harwood Wealth Management Group PLC
8th Jan 202012:40 pmRNSForm 8.5 (EPT/RI) Harwood Wealth Management
8th Jan 202012:23 pmRNSHolding(s) in Company
8th Jan 20209:38 amRNSForm 8.3 - [HARWOOD WEALTH MANAGEMENT GROUP PLC]
7th Jan 20209:35 amRNSForm 8.5 (EPT/RI) Harwood Wealth Management
6th Jan 20201:40 pmRNSForm 8.5 (EPT/RI) Replacement - Harwood Wealth
6th Jan 202012:39 pmRNSForm 8.5 (EPT/RI) Harwood Wealth Management
3rd Jan 20208:55 amRNSForm 8.5 (EPT/RI) Harwood Wealth Management
30th Dec 201910:13 amRNSForm 8.5 (EPT/RI) Harwood Wealth Management
27th Dec 201910:22 amRNSForm 8.5 (EPT/RI) Harwood Wealth Management Group
24th Dec 201910:46 amRNSForm 8.5 (EPT/RI)
24th Dec 201910:41 amGNWForm 8.3 - [Harwood Wealth Management Group plc] (HH Ltd)
24th Dec 20199:23 amRNSForm 8.3 - Harwood Wealth Management Group plc
23rd Dec 20193:31 pmEQSForm 8.3 - Harwood Wealth Management Group plc
23rd Dec 201911:11 amRNSForm 8.3 - [Harwood Wealth/Hurst Point Topco]
23rd Dec 20197:00 amRNSRecommended cash acquisition of Harwood Wealth
23rd Dec 20197:00 amRNSOffer for Harwood Wealth Management Group PLC
31st Jul 20197:00 amRNSAcquisitions
27th Jun 20197:00 amRNSInterim Results
17th Apr 20194:25 pmRNSResult of AGM
1st Apr 201911:15 amRNSAnnual Report and Accounts and Notice of AGM
11th Feb 201911:59 amRNSAcquisition of Castleton Financial Planning
12

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.