In a pre-close trading update for the first half, the group said that funds under management and influence rose to £820m during the period, from £660m, which reflected, among other things: “reflected the strengthening of the group’s European investment management team.
The firm, which was admitted to AIM in May also recently announced it has bought IFA business, Compass, which added around £31m of funds under influence.
See also: Bolt-on acquisition bolsters European Wealth’s London presence
With the global economic recovery continuing, European Wealth remains optimistic for the remainder of 2014. However, with global markets approaching historic highs, the second half is unlikely to show the same level of organic revenue growth as in the first half. Further, the Group is looking at re-balancing its portfolio strategy to insulate clients against potential market shocks, whether as a result of geopolitical risks or changes in central bank policies.
European Wealth said, the strong market conditions seen in the first six months of the year, have benefitted its trading activities and should result in solid first half revenue growth. The Group is also expected to show a positive EBITDA for the first half, excluding the one-off costs of the admission to AIM it said.
John Morton, Executive Chairman of European Wealth, said in the pre-close statement: “The completion of the AIM admission in May was a major milestone for the Group. This brought immediate benefits with the Compass acquisition and associated fund raising following less than two months later. Such a transaction would have been far harder to execute under our previous ownership structure and underlines our strategy of combining organic growth with targeted acquisitions.
Looking forward
While the group is optimistic for the second half of the year, it does warn that with global market approaching historic highs “the second half is unlikely to show the same level of organic revenue growth as in the first half”.
In light of this, European Wealth says it is looking to: “re-balance its portfolio strategy to insulate clients against potential market shocks, whether as a result of geopolitical risks or changes in central bank policies.”
On the growth side of the things, Morton said: “We continue to review further organic growth and targeted acquisition opportunities that have the ability to widen our geographic reach, broaden our scope of services and access important new client niches in the second half of the year.”
