Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a758702

European Wealth buys adviser firm for 'significant' pension opportunity

by Dylan Lobo on Jun 25, 2014 at 07:45

European Wealth buys adviser firm for 'significant' pension opportunity

AIM-listed European Wealth has struck a deal to acquire advisory firm Compass Financial Benefits (CFB).

Surrey-based CFB is a family run business fronted by John and Michael Robinson with £31 million in funds under influence. In the year to December 2013, the firm had turnover of £434,230, of which approximately 76% was recurring income, and recorded a pre-tax profit of £154,250.

European Wealth will pay a maximum of three times CFB's retail distribution review compliant recurring income for the 12 months following completion in a deal worth £539,150.

CFB will be relocated and fully integrated into European Wealth's head office in London and both John and Michael Robinson will be appointed associate directors of European Financial Planning, European Wealth's financial planning subsidiary.

European Wealth also announced it had raised around £674,000 through a placing  of 749,303 new 5p ordinary shares at a price of 90p with existing and new investors, alongside some of its employees. The proceeds of the placing will be used to cover part of the CFB purchase and for general working capital purposes.

Commenting on the news, European Wealth executive chairman John Morton (pictured) told the stockmarket: 'We are pleased to have completed our first acquisition since coming onto the market in May.

'Whilst small, it will not only strengthen our presence in the group personal pension scheme market where we see significant opportunities domestically, but also allow us potentially to leverage our investment management services to Compass's clients.'

He added: 'We also see significant scope for improving compass's operating costs whilst at the same time continuing to grow our overall funds under management and influence. We consider our AIM listing as an important mechanism for completing further selective acquisitions as we continue to increase our funds under management and influence.'

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Sponsored Video: Barings on investing in Frontier Markets


From Nigeria to Pakistan and from Kenya to Kuwait, frontier markets are catching investors' attention as never before.

More about this:

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet