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.’