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Rowan Dartington in double office launch as profits surge 350%
by Elsa Buchanan on May 09, 2014 at 10:54
Rowan Dartington's restructuring programme and regional expansion is starting to pay dividends, with profit growth of 350% during 2013.
Under the stewardship of Graham Coxell (pictured), now three years into his role as chairman, Rowan Dartington pre-tax profits leapt by £0.55 million to £0.75 million during 2013. The firm has sought to build on its success last year with the launch of two new branches so far in 2014 in Reading and Nottingham, spearheaded by John Scurlock-Davies and David Archer respectively.
It also proved to be a strong year for asset growth, with funds under management rising £181 million over the year to £861 million, of which £360 million is managed on a discretionary basis. This compares to £285 million in 2012 and was buoyed by the firm's 70% stake in adviser firm Stafford House Investments, which outsources £61 million of its £118 million in assets to Rowan Dartington.
The group attributed growth to an increase in management fees as a proportion of total revenues and highlighted an ongoing program to increase the revenues generated on client assets 'with the aim of aligning these with market rates'.
However, the Bristol-based wealth management firm also acknowledged the exit of six from its Signature team in August of last year, including founder Andrew Morris, would likely lead to clients leaving the firm.
‘It is inevitable that some clients may follow the team but the extent of this will not be known until later in 2014 once their restrictive covenants have expired,’ the group noted.
Morris left alongside senior investment manager Joe Dyer to set up Alpha Portfolio Management. They were followed by former colleagues Mark Sevier, head of equity research at Rowan Dartington, and portfolio manager James Gardner.New Reading office head Scurlock-Davies had previously established a Reading office for private bank Coutts, followed by spells at Credit Suisse and UBS.
Archer, meanwhile, will spearhead a new Nottingham office. He joined from Barclays' wealth and investment division in the Midlands. Prior to this, he worked at Ashcourt Rowan and Kleinwort Benson, as director of intermediary sales and intermediary sales manager.
The double office launch follows the decision to open an Exeter office in September 2013, headed by Mike Townsend, who joined from Rathbones.
In April of this year Rowan Dartington acquired online wealth management platform Acordias. At the time, the wealth manager said the buy would allow it to deliver its stockbroking and discretionary fund management capabilities on a global basis.
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