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1 Feb 2022 07:00
1st February 2022
KINGSWOOD HOLDINGS LIMITED
("Kingswood" or the "Company")
Trading Update
Kingswood Holdings Limited (AIM: KWG), the international, fully integrated wealth and investment management group, provides an update on trading for the year ended 31 December 2021.
Subject to audit, the Company expects to report full year revenues of approximately £148.8m (2020: £25.5m) and an operating profit of approximately £6.9m (2020: £0.9m), in line with market expectations.
Highlights
· Record revenues in the year with an increase of 484% on the prior year, through a successful number of acquisitions in the UK and growth in the Investment Banking and RIA/Broker Dealer businesses in the US.
· The Group has £41.3m of cash as at December 2021, an increase of £37.5m since 31 December 2020. This is largely driven by further investment from our private equity partner Pollen Street Capital (£27.9m net of acquisition related payments) and £11.0m cashflow generated from operating activities, mainly in the US (£7.5m of which is timing of the settlement of Investment Banking commission payments).
o In December 2021, Kingswood issued a further 32.6m new £1 convertible preference shares to Pollen Street Capital taking the total investment since 2019 to £77.4m.
· In 2021 Kingswood announced the acquisition of Admiral Wealth Management Ltd, Smythe and Walter Ltd, Money Matters (North-East) Ltd and Metnor Holdings Ltd. It also announced the acquisition of DJ Cooke Ltd in January 2022 and Allotts Financial Services Limited in February 2022 with a further two acquisitions expected to complete in Q1 2022. AUM/A was reported as £6.2bn at the 2021 Interims and this is expected to increase to £8.7bn with the completion of these two acquisitions.
· The Kingswood US Investment Banking business completed over 100 transactions with a total of over $9.0bn capital raised for clients. The Kingswood US wealth management business increased its advisor representatives to 208 by December 2021, with $2.5bn of client assets. A further seven advisors have been recruited in January 2022 who collectively oversee $295m in client assets. Also in January 2022, Kingswood Capital Partners and Skyway Capital Markets LLC announced an exclusive partnership in which the Skyway investment banking team will work closely with Kingswood advisors and their clients to execute M&A transactions.
Gary Wilder, Group CEO of Kingswood, commented: "2021 was a transitional year for Kingswood, delivering record levels of revenue and profit for the Group. We have a strong, well-capitalised balance sheet and with the support of Pollen Street Capital have continued our successful buy, build, grow and integrate strategy in the UK led by our UK CEO David Lawrence and our organic recruitment and partnership growth strategy in the US led by our US CEO Mike Nessim. The US business has delivered exceptional growth in 2021 and we are confident of further accelerated growth on both sides of the Atlantic in 2022. Kingswood remains focused on building its long-term value strategy, centred around vertical complementary growth business lines in the international independent retail wealth and investment management sectors and has both the balance sheet strength and outstanding people to deliver this."
ENDS
For further details, please contact:
Kingswood Holdings Limited | +44 (0)20 7293 0730 |
David Lawrence | www.kingswood-group.com |
finnCap Ltd (Nomad & Broker) | +44 (0)20 7220 0500 |
Stuart Andrews / Simon Hicks / Abigail Kelly |
|
GreenTarget (for Kingswood media) Jamie Brownlee / Alice Gasson / Ellie Basle | +44 (0)20 7324 5498 Jamie.Brownlee@greentarget.co.uk |
About Kingswood
Kingswood Holdings Limited (trading as Kingswood) is an AIM-listed (AIM: KWG) international fully integrated wealth management group with circa £7.9bn of Assets under Advice and Management. It services circa 15,900 clients from a growing network of offices in the UK including Abingdon, Beverley, Conisbrough, Darlington, Derby, Grimsby, Harrogate, Hull, Lincoln, London, Maidstone, Newcastle, Sheffield (2), Worcester and York with overseas offices in Johannesburg, South Africa and Atlanta, New York and San Diego in US.
Kingswood offers a range of trusted investment solutions to its clients, which range from private individuals to some of the UK's largest universities and institutions, including investment advice and management, personal and company pensions and wealth planning. Kingswood is focused on becoming a leading player in the wealth and investment management market through targeted acquisitions in the UK and US, creating a global business through strategic partnerships.
Registered office address: Mont Crevelt House, Bulwer Avenue, St. Sampson, Guernsey, GY2 4LH
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