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UK Wealth Management reveals £145k loss and £2m hand-out

UK Wealth Management reveals £145k loss and £2m hand-out

Yorkshire-based IFA UK Wealth Management (UKWM) has posted a loss before tax of £145,000 and revealed it received investment of around £2 million from private equity backers Duke Street.

In the year ended 31 December 2011 the firm made a £145,000 loss on ordinary activities before tax compared to a loss of £54,000 in the same period in 2010.

Turnover was up to £9.3 million, from £8.5 million, and UKWM increased its earnings before interest, taxes, depreciation and amortisation to £555,000, up from £429,000 in the equivalent period the previous year.

Revenue per adviser also rose by 12% in the firm's financial planning business.

The £2.2 million invested in the firm by Duke Street was largely to settle liabilities held on the balance sheet at the point of acquisition and also to contribute to the working capital of the group, its financial statement revealed.

Private equity firm Duke Street bought a majority stake in UKWM in March 2011 as part of its plans to create a £10 billion wealth management business.

Duke Street acquired the stake from JC Flowers which acquired the firm in January 2008 for an undisclosed amount. The firm’s partner Miles Cresswell-Turner said Duke Street had plans to make UKWM a major consolidator and a starting point to acquire more small and medium-sized IFA firms over the next five years.

The firm said it made no acquisitions in 2011 and in fact declined on a number of offers.

It was reportedly in takeover talks to buy national IFA LEBC Group before these collapsed and LEBC joined network Tenet.

Lynn Coleman (pictured), chief executive of UKWM, said: 'We engaged with a number of prospective acquisitions in the period, but saw none that met our criteria.

'The group offers a comprehensive range of services for a business of its size and remains in a strong position to benefit from this as organic growth and acquisitions extend its distribution capability and reach. Acquisitions therefore remain an important part of the group's strategy.'

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