When compared with 2021, which saw a staggering 488% rise in revenue, achieving 31% growth in the first half of 2022 might seem less of an achievement for Kingswood. But, in light of the market conditions, adding £18.8m is definitely not something to sniff at.
For the six months to 30 June 2022, Kingswood reported group revenue of £80.4m, while operating profit climbed to £4.5m, an increase of 47%.
Across the group, assets under management and advice jumped by £2.2bn to reach £7.1bn in the first half of the year, largely driven by inorganic growth.
At the end of H1 2022, the group had cash reserves of £20.7m, down from £22.2m in December last year due to acquisition-related payments in the UK and timing of the settlement of investment banking commission payments in the US.
David Lawrence, Kingswood chief executive, commented: “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.”
Kingswood has completed six UK acquisitions so far in 2022, and is in exclusive talks with eight further UK- and Ireland-based businesses, which are expected to be concluded this year.
Lawrence said: “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.”
See also: Kingswood buying spree continues as it inks fifth IFA deal this year
He added: “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 $0.2bn.”
Across the pond, US revenue increased by 26% to £63.9m, compared to the first half of 2021, while recurring revenues rose from 7% in 2021 to 13% in H1 2022.
The group as a whole now manages £9.3bn of client assets, an increase of 37% compared to December 2021.
Looking ahead, Lawrence said: “Whilst the external environment is less certain in the short term, the strategy and trajectory of the business continues as planned.”
