The group’s strongest area was its discretionary and advisory business, where assets under management have risen 31% over the last 12 months and 5% over the current six month period, in spite of falls in the major equity indices. Discretionary and Advisory assets under management at the end of the period were £2.1 billion (30 September 2014: £1.6 billion). The group attributed this growth to a greater emphasis on fee generation rather than transactional brokerage
The wealth management division was weaker. Revenues and profits dipped by 10% and 34% respectively compared to the previous six months. The prior period had been exceptionally strong and the group‘s revenue and profits were up 18.5% and 32% respectively over the 6 months to 31 March 2014. The division still managed to register a rise in assets under management of 10.4% to £479m (2014: £434m).
Revenues from the Investment Management division increased 26% to £12.0 million (2014: £9.5 million). This growth reflected additional revenue from the group’s acquisition of Barker Poland Asset Management and the business transferred in by new investment managers and advisers. Non-broking income as a proportion of total income increased to 60% (2014: 57%). The group said more of its client base was converting to discretionary or portfolio-managed mandates. The Structured Investments business also had a strong half-year.
Overall, group revenues increased 22% to £13.3m, with pre-tax profit up from £115,000 to £589,000. The group will pay an interim dividend of 9% or 0.58p per share. Total assets under management and administration at the end of the period increased by 22% to £3.9bn.
