In the group’s interim report, released 26 November, losses after tax of £700,000 in the six months to 30 September 2014 represent a £1.7m drop from the £2.4m shortfall recorded in the same period last year.
The loss reduction was despite the £1.5m spent integrating UK Wealth Management (UKWM), which was acquired on the 3 April.
The acquisition contributed to the group’s discretionary and managed assets rising to by 19% since March to £2.3bn – a year-on-year increase of 40%.
Total AUM hit £5.3bn, a 32.5% surge on the £4bn recorded six months previously, while underlying EBITDA profitability experienced a year-on-year increase of 111% to £1.9m. An N+1 Singer report released on 26 November projected Ashcourt Rowan’s EBITDA to jump 97% over the next year, and a further 36% during the 12 months after that.
Revenue rose by £4.7m (30.9%) from £15.2m to £19.9m year-on-year, while company cash reached £10.1m – a £3.1m increase – in the same period.
Jonathan Polin, group chief executive, said: “The pleasing thing about the results is that there is real improvement across every metric.
“Over the last three years we have been completely changing the business. The exceptional costs of £1.5m [for this period] are the costs of redundancy, contract termination, opening the Leeds office [in June] and integrating UKWM etcetera. Going into the second half of the year we are going to feel the benefit of these synergies.”
The positive results and continued profit growth projected for the second half of the financial year have prompted the Ashcourt Rowan board to announce a dividend policy review in March 2015.
The company is due to add another team to its asset management arm in January 2015, and will also be looking to recruit new financial planning teams.
