In its first set of annual results under new CEO Marianne Ismail (pictured) the group posted a £5.9m loss for 2017, which it said was down to one-off restructuring costs. This compares with a £750,000 loss the year before.
As part of the overhaul, the group will now trade under KW Wealth from 2 July.
Ismail said the name change was designed to “frame our new growth plans” as the investment manager looks to win more business in the “fragmented” UK wealth management space that has little brand recognition.
In the year to 31 December 2017, assets under management have edged up only marginally from £1.5bn to £1.7bn.
“The UK market is in a period of major consolidation which offers an opportunity to build a brand, as the market place, particularly in financial planning is fragmented with almost no brand recognition for any competitor,” Ismail said.
Since taking over for ex-chief executive John Morton last September, Ismail has led a major restructuring of the business, cutting out £1.4m of operating costs over the last seven months and extending the firm’s geographical reach in the UK.
It now has hubs in London, Manchester and East Malling in Kent, in addition to its back-office function in Cheltenham and is planning on growing its number of managers and financial planners from 23 to 50 in three years.
The London-based manager said it was now debt free and had ended the year with a net cash position for the first time in its nine-year history.
American acquisitions
Elsewhere the group said it would continue to pursue M&A opportunities as part of its growth strategy.
It had been poised to takeover US broker Newbridge Securities but the deal ultimately fell through earlier this month. The terminated deal is estimated to have cost the firm £490,000.
Like the UK, Ismail said the US wealth management space was undergoing a similar period of fragmentation, making it an ideal target market for recruiting and acquisitions.
“Our M&A strategy remains central to our business,” Ismail said. “We have stringent criteria to ensure that we deliver value accretive acquisitions and with this in mind, the decision was made not to pursue the acquisition of Newbridge Securities in the USA. However, there is a significant market opportunity, given the fragmented nature of the global wealth management industry, and with this in mind we look forward to updating the market on future opportunities at the appropriate time.”
Board reshuffle
In a separate announcement, the investment group said David Hudd would be joining the board as a non-executive director. Hudd is currently the deputy CEO of law firm Hogan Lovells.
There have been a host of changes to the board within the last year. In addition to Morton’s departure, Kishore Gopaul retired last July and COO Simon Ray stepped down in December.
Three members from major shareholders Kingswood and Astoria, who collectively own 48% of the business, have also joined during the period.
