European Wealth Group’s losses mount after buying spree

Added 22nd June 2016

European Wealth Group slid to a £1m loss for the 2015 calendar year having recorded a £0.3m loss in 2014.

European Wealth Group’s losses mount after buying spree

The loss came despite the firm growing its assets under management by 20% on the 2014 level to £1.2bn.

The group also grew its recurring revenue by 63% compared to a 45% rise in 2014.

Income was up by 67% to £7.7m which the firm said reflects a full year of trading as well as organic growth, acquisitions and growth from attracting additional revenue generating staff.

The £1m loss before tax was mainly a result of lower than expected trading volumes and the costs associated with making acquisitions and hires.

European Wealth completed three acquisitions in the financial year. In July it bought Greensnow which added £70m of funds under influence. In September it acquired the financial planning clients of Bells Solicitors which added £43m, and in November it acquired XCAP Nominees Limited, the client list of Hume Capital plc bringing in £30m.

Chairman John Morton said the group has continued to pursue its core strategy of taking advantage of the structural changes within the financial services industry both in the United Kingdom and internationally.

These changes, which are primarily driven by changing regulation, are resulting in increased stress on overheads at a time when the industry is becoming more competitive and margins, particularly in the investment management industry, remain under pressure, he added.

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Alex Sebastian

News editor

Alex joined Portfolio Adviser in April 2014 and has been a financial journalist since 2008. He has previously held editorial positions at the Financial Times Group and Euromoney Institutional Investor. Alex is NCTJ qualified and has a degree in economics from the University of Sussex.



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