Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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 Mark Barnett - part 2: why I'm not buying Lloyds

Mark Barnett - part 2: why I'm not buying Lloyds

In the second part of our exclusive video interview, Barnett explains why he has no intention of buying Lloyds, and where he sees the greatest income opportunities.

Play Wealth managers reveal the best investment ideas of the year

Wealth managers reveal the best investment ideas of the year

From robotics to impact investing, wealth managers share the best ideas they have heard this year.

Play Baillie Gifford's Earnshaw on Xi Jinping's 'new era'

Baillie Gifford's Earnshaw on Xi Jinping's 'new era'

Sophie Earnshaw talks through what Xi Jinping's 'new era' means for investors. and why Chinese tech offers some of best growth stocks in the world.

Read More
Your Business: Cover Star Club

Profile: JM Finn on why the future is with financial planners

Profile: JM Finn on why the future is with financial planners

There is a lot of work on pension consolidation and Sipps have been a big driver there, says JM Finn chief executive

Wealth Manager on Twitter