London-listed Kingswood Holdings, a wealth and investment management group, has released its unaudited interim financial results for the half year ending 30 June 2022.

Following record results in 2021, Kingswood Holdings said its revenue has grown by 31 per cent in the first half of 2022, compared with the same time last year, and operating profit by 47 per cent, increasing by £1.5 million ($1.72 million) to reach £4.5 million.

Wealth Planning revenue of £12.9 million increased by 55 per cent compared with H1 21, reflecting the impact of the firm’s recent acquisitions and organic revenue growth from higher new volumes of new business, Kingswood said in a statement.

Investment Management revenue of £3.6 million also increased by 55 per cent compared with the prior year due to the acquisition of IBOSS Asset Management. The firm has also seen positive net inflows in its fixed income business, it added.

Nevertheless, profit before tax for the period saw a loss of £1.7 million reflecting a net £6.3 million acquisition-related deferred consideration release offset by £1.9 million amortisation and depreciation, £1.5 million finance (interest related) costs, £2.8 million business re-positioning and transaction costs and a goodwill adjustment of £6.4 million.

UK trading was in line with expectations; the firm has completed six acquisitions so far in 2022, adding £2.8 million annual operating profit and about £0.9 billion assets under management and advice to the group, Kingswood said. See details of Kingswood's last acquistion of Smith Pearman and Associates here. 

Kingswood has also signed heads of terms and is in exclusive discussions with a further eight UK and Ireland businesses, most of which it expects to conclude in this financial and calendar year.

Kingswood US has also increased the number of registered representatives in its Registered Investment Adviser and Independent Broker Dealer business by 6 per cent in the first six months of the year, supporting growth in AUM/A by $0.2 billion to about $2.7 billion, the firm added.

A complementary focus on organic growth is now delivering a positive trajectory across all operating segments in H1 22.

Kingswood now manages £9.3 billion of client assets, an increase of 37 per cent compared with December 2021, the firm said.

Welcoming the results, David Lawrence, Kingswood CEO, said: “We delivered record levels of revenue and operating profit in all three of our divisions in 2021 and 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,” he added. 

“We have continued to implement our buy, build and grow strategy in the UK, successfully completing the acquisition of six UK IFA businesses and have a strong pipeline for future UK acquisitions,” he said. 

“Under the leadership of Mike Nessim, we have also continued to expand our US footprint adding 12 new registered representatives and growing our AUM by $0.2 billion,” he stressed. 

“Whilst the external environment is less certain in the short-term, the strategy and trajectory of the business continues as planned,” he added. 

 See a previous interview on the market outlook with Kingswood CIO Rupert Thompson here.