Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Quadruple hire powers near tripling in Vestra profits

Quadruple hire powers near tripling in Vestra profits

Vestra Wealth’s new hires and growing economies of scale have helped power a near-threefold rise in profits.

Founder David Scott said four individuals joined over the last year, bringing with them ‘several hundred million’ and contributing to an increase in profits from £1.98 million to £5.1 million over the financial year ended in April.

Vestra has also benefited from reducing its cost base, with Scott (pictured) attributing much of the increase in profit to a fall in operational expenses. ‘Once you start to achieve critical mass you get proper margin profit,’ he explained. 

As it reported on its financial performance, Vestra pointed to the challenging conditions. However, in a filing to Companies House, the firm appeared to have navigated these smoothly, highlighting growth in its client bank ‘at a good price’ and a lift in assets from £2.2 billion to £2.6 billion.

Scott said that for companies looking to buy in assets, both client books and wealth firms currently look fully priced, and Vestra believes it is more efficient to grow through key hires.

‘We have deliberately not gone down the acquisition route – we are not ruling it out [but] the new business growth has been quite significant.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter