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Harwood's revenue jumps 123% as major advice buy bears fruit

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Harwood's revenue jumps 123% as major advice buy bears fruit

Harwood Wealth Management revenue has surged on the back of its acquisition of Network Direct. 

Harwood, which completed the purchase of national network in February 2017 for an aggregate consideration of £0.9 million, said revenue jumped by 123% in the 12 months to 31 October to stand at £25.9 million. Network Direct contributed to £9.8 million of this. 

Wolverhampton-based Network Direct was the standout in the seven acquisitions made by the firm over the year, adding some £1 billion in assets under influence (AUI) to the firm. Overall AUI rose 81% to £3.8 billion over the year.

'The scale of the acquisition was unprecedented for the group, and National Direct's services provided to a network of appointed representatives have brought a new strategic dimension to Harwood, upon which we can build,' joint chief executives Neil Dunkley and Alan Durrant (pictured) said in a statement. 

'We now have access to a far greater number of financial advisers, to whom we can speak about the investment solutions that we can offer - via them - to their clients. Building these relationships also positions us well should some of these financial advisers wish to sell their businesses in future.'

Meanwhile the firm's discretionary fund management business, Wellian Investment Solutions, performed strongly with assets under management rising from £284 million to £627 million, fuelled by the win of mandates from third party businesses.

The group's performance translated to an increase in pretax profit from £0.1 million to £0.7 million, with the group recommending a final dividend of 2.24p. 

The firm remains well-placed to make further acquisitions after raising £10 million from a placing in April 2017. 

'As ever, there are uncertainties ahead, with Brexit and its potential ramifications on the financial services sector a particularly difficult area to predict,' chair Peter Mann said. 

'However, uncertainty tends to drive the need for financial advice, and as we look to the year ahead and beyond, we remain confident that our simple, proven strategy will continue to provide plentiful opportunity for profitable organic and acquisitive growth.'

 

 

 

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