Harwood Wealth targets third-party tie-ups post IPO

UK-Currency-Money-Coins-700.jpgHarwood Wealth is looking to grow its DFM and investment management services for third-party firms, as well as continuing on the acquisition trail, as the group reports its first results since its IPO.

Peter Mann, chairman of Harwood Wealth Management Group, says: “There are now some opportunities we can explore, such as exporting some of our capabilities. In the DFM and investment management space we are well-known, so we plan to export our expertise to third parties outside the group.”

In its half year results, published today, profits on an adjusted EBITDA basis rose 8.7 per cent to £1.06m, compared to £0.98m during the same period a year ago.

This period included Harwood’s IPO on AIM in March, which raised £10m before expenses.

Mann says the firm will continue its acquisition spree despite Brexit uncertainties as he is confident in the “popularity” of vertically-integrated business models.

Mann says: “We continue to expand by asset acquisition in like-minded firms. We can do that with a total cash balances of £12.1m compared to £5.2m a year ago.”

Harwood has made 11 acquisitions in the past year for a consideration of £8m, including the recent acquisition of Wellian Investment Solutions.

“Our vertically-integrated acquisition model is becoming very popular in the industry and Brexit will not change our core strategy,” says Mann.

Over the period, assets under influence rose 59 per cent to £1.655bn, from £1.038bn during the first half of 2015. These included £580m in assets under management, up from £256m.

Revenues also increased 36 per cent to £5.11m from £3.77m.