Kingswood has increased its total assets under advice (AUA) by £2.2bn to £7bn in the first half of 2022, according to its interim financial results.
This was largely driven by inorganic growth and positive net flows of its AUA, the consolidator said.
It comes after the company, which has both UK and US operations, completed four acquisitions in the UK during 2021, adding £2.4m annual operating profit and £1.8bn AUA to the group.
A further six UK acquisitions were completed during the first half of 2022 - Allots Financial Services, Joseph R Lamb Financial Advisers, DJ Cooke Life and Pensions, AIM Independent Financial Advisers, Vincent & Co and Smith Pearman and Associates.
Eight UK acquisitions are currently in ‘exclusive due diligence', Kingswood confirmed, comprising a total of £8.7m annual operating profit and £1.9bn assets under management/AUA. These are expected to conclude in the fourth quarter of 2022.
Following record results in 2021, group revenue has further grown by 31% in H1 22 (vs H1 21) and operating profit by 47% increasing by £1.5m to £4.5m.
Group revenue of £80.4m increased by £18.8m, or 31%, compared to H1 21 reflecting the impact of acquisitions and healthy organic growth across both the UK and US, the group said. Wealth planning revenue of £12.9m increased by 55% compared to H1 21, reflecting the impact of Kingswood's recent acquisitions.
Recruitment and technology
The interim results today (15 September) also show outline the consolidator's new approach to recruitment with it highlighting efforts made to "address diversity imbalances across the organisation".
Kingswood noted that despite female financial advisers representing around 15% of the advice community, 60% of its hires this year have been women.
The consolidator is also planning further investment in its technology offerings it said will deliver an "enhanced client experience.
This includes the introduction of a ‘digital fact find' offering and propositions that will provide both face-to-face and digital services.
The firm now manages £9.3bn of client assets, an increase of 37% compared to December 2021.
Kingswood chief executive officer David Lawrence said the firm delivered record levels of revenue and operating profit in all three of its divisions in 2021.
"I am delighted to report further growth in the first half of 2022. Whilst the business continues to build momentum through 2022, revenue and operating profit have been impacted by unfavourable market conditions, mainly from lower than expected capital market activity in the US. Despite this, our business continues to grow organically in both the UK and US and our acquisition strategy continues to progress as planned."
Lawrence added: "Whilst the external environment is less certain in the short-term, the strategy and trajectory of the business continues as planned. We have a strong leadership team that is driving tangible results and realising our ambition to become a leading fully integrated international wealth and investment management business and I would like to thank all colleagues and stakeholders for their effort, focus and commitment."
