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7 Sep 2009 07:00
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News release
7 SeptemberΒ 2009
Merchant Securities plc
Acquisition of Wealth Management Company
Merchant Securities plc (theΒ "Group"), theΒ financial services groupΒ specialising in private client investment management,Β institutional research and trading,Β corporate financeΒ and corporate brokingΒ announcesΒ that it has entered into an unconditional agreementΒ (the "Agreement")Β to acquire Cavendish Young Limited,Β ("Cavendish Young")Β anΒ IndependentΒ FinancialΒ AdviserΒ &Β fee based Wealth ManagementΒ companyΒ based in Belgravia, LondonΒ (the "Acquisition").
Cavendish Young, whichΒ was formed in 1999, managesΒ Β£46Β millionΒ for high net worth individuals and has a total client base ofΒ 2500Β private clients.Β For the year endedΒ 31 March 2009, Cavendish Young made a profit before taxation of Β£2,665Β on turnover of Β£630,342Β and had net assets of Β£229,018Β on that date. The sellers of Cavendish Young are Mark Estcourt, the founder and managing director of the company and his wife TracyΒ Estcourt. Mr Estcourt has entered into aΒ newΒ service agreement with Cavendish Young.Β
The initial consideration for the Acquisition is Β£65,000, of which Β£32,500 was paid on completion, with the balanceΒ payableΒ following agreement ofΒ theΒ completion balance sheet. Further deferred consideration may become payable dependent upon two factors: the future profitability of CavendishΒ YoungΒ in the financial periods ending 31 March 2014, withΒ aΒ potentialΒ deferred considerationΒ in this regard capped atΒ Β£800,000 and the amount of funds which come under theΒ discretionaryΒ management of the GroupΒ over the same period, with an additional potential deferred considerationΒ capped atΒ Β£500,000, giving a maximum potential total consideration of Β£1.3 million.Β
As at 31 July 2009 the GroupΒ hadΒ Β£85Β million under advisory management and a further Β£6.5Β millionΒ underΒ discretionary management. The AcquisitionΒ increases the total funds under Group management to over Β£135Β million andΒ has the potential to increase the funds under the Group's discretionary managementΒ toΒ over Β£50Β million, before any future growth.
Patrick Claridge, Chief Executive of Merchant SecuritiesΒ plc, says:
"This acquisitionΒ fits well withΒ our strategy toΒ increase long term recurringΒ income across our three sectors of private client, institutional and corporate finance and corporate broking business.Β This dealΒ representsΒ a major stepΒ forwardΒ for the private client business,Β increasingΒ totalΒ Group funds under advisoryΒ and discretionaryΒ managementΒ to overΒ Β£135Β million. We will continue to seek appropriate ways of expanding the Group, with anΒ emphasis onΒ increasing longΒ term recurring income andΒ delivering a high-qualityΒ service to ourΒ entireΒ client base."
- Ends -Β
For further information please contact:
|
Merchant Securities plc Patrick Claridge (Chief Executive) Broadgate Roland Cross/Emma Murphy Arden Partners plc Richard Day |
020 7375 9010 020 7726 6111 020 7398 1600 |
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