UK wealth manager Evelyn Partners releases its financial results for the first half of 2024.

Evelyn Partners delivered a record financial performance in the first half of 2024, with an 18.3 per cent increase in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) and assets under management (AuM) closing at a high of £62.2 billion ($79.5 billion).

During the period, the business generated £3.5 billion of gross inflows, equivalent to an annualised growth rate of 11.8 per cent, the firm said in a statement. Net flows remained positive at £0.5 billion, compared with £1.8 billion in the first half of 2023, with elevated outflows reflecting the impact of higher interest rates on clients. This, alongside positive markets and investment performance, drove assets under management to a high of £62.2 billion, up 13.3 per cent year-on-year and 5.2 per cent since December 2023, the firm added.

Group operating income increased 10.3 per cent to £360.8 million, from £327.2 million in the first half of 2023. There was 23.4 per cent growth in professional services operating income, reflecting continued strong organic growth alongside the contribution of acquisitions made last year. The firm also recorded 5.2 per cent growth in financial services operating income, driven primarily by an increase in average AuM.

The firm said that strong growth in operating income combined with a disciplined approach to cost management resulted in an 18.3 per cent increase in adjusted EBITDA to £103.9 million, with the adjusted EBITDA margin rising to 28.8 per cent from 26.8 per cent from the first half of 2023.

“We have made a great start to the year supporting our clients in addressing their financial needs and delivering strong financial performance. Healthy top-line growth combined with a disciplined approach to managing our costs, resulted in a 18.3 per cent increase in adjusted EBITDA, which is our key measure for underlying cash profits,” Paul Geddes, group chief executive, said.

“In professional services, we continued to see strong organic growth in fee income and the benefit of the five acquisitions we completed last year coming through. We will build on this over the coming months, with the recently announced acquisition of the Manchester, Leeds and Newcastle offices of Haines Watts which has brought us 150 new colleagues,” he continued. “In our financial services business, positive market movements in the first half and resilient new business generation have delivered higher AuM and operating income.” 

“Since the merger in 2020, Evelyn Partners has demonstrated the strength and resilience of its business model in challenging market conditions, including during the pandemic and subsequently in an environment of high inflation and interest rates,” Geddes said. “Despite this, we have delivered net inflows of new assets every quarter since the merger. Our professional services business has shown consistently strong growth in operating income, offering a broad range of services to private clients and businesses.” 

“With inflation having settled back and the first interest rate cut made in the UK, there are good grounds to be positive on the medium-term outlook despite the turbulence seen in global equity markets in recent days,” Geddes continued. “Evelyn Partners is well positioned to support clients navigate periods of market volatility and, with potential changes to tax and pensions on the horizon, we also expect to see strong demand for financial advice in the second half of the year.”