Kingswood revenues surge 646% as wealth buys bear fruit

Kingswood’s total group revenue for the first half of 2021 was £61.5m, a massive 646% increase on the £8.3m recorded in the previous year.

The US division was the biggest driver in growth, with the division reporting revenues jumping from £1.4m in the first half of 2020 to £50.9m. The group attributed this to acquisitions and growth.

Revenues for UK wealth management rose from £4.7m to £8.3m. 

The Pollen Street Capital-backed wealth group made a pre-tax loss of £3.7m, which was largely due to £4.1m of acquisition costs. However, operating profit was £3.1m compared with an operating loss of £1.3m last year.

The results follow the wealth manager’s purchase of Admiral Wealth Management for £4m, which was completed in August. Kingswood said it was in exclusive acquisition discussions with a further nine UK businesses, and three firms outside the UK.

The firm currently has £24.7m in cash, which has been boosted by £20.8m since December due to further investment from Pollen Street Capital.

Total assets under management stand at £6.2bn, with Kingswood’s UK division now managing £4.5bn across its 16 offices.

Group chief executive Gary Wilder (pictured) said: ‘We are now benefiting from our acquisition strategy and successful entry and consolidation of our position in the attractive high growth US market.

‘The second half of 2021 promises to be another busy and exciting period for the Group. With the financial and strategic support of Pollen Street Capital and KPI, Kingswood will continue to capitalise on the consolidation, acquisition and integration opportunities across international wealth and investment management markets.’

Kingswood said in June that it was in acquisition talks with five companies and has made offers to another four as the firm prepares to splash £200m snapping up wealth firms.

Supported with £44.8m in capital from Pollen Street, last year the firm spent around £20m buying Surrey-based firm Regency Investment Management and Hull-headquartered Sterling Trust. It also expanded in the US and overhauled its management team.

Previous buys also included WFI Financial, a Sheffield-based IFA purchased in September 2019 for £14m, and a stake in US-based Manhattan Harbor, which rebranded to Kingswood after the firm increased its stake in the business from 7% to 20%.

In July Kingswood’s chair and non-executive director Kenneth ‘Buzz’ West stepped down following seven years on the firm’s board.

The changes came after a board shake-up in December, when Lloyds Bank veteran David Lawrence joined as UK chief executive, and the group’s chief operating officer left.