Tilney profits double over 2017

Tilney Group’s profits doubled from £43m in 2016 to £86.6m for the year to December 2017, boosted by rising assets and fees from financial planning and investment management.



Revenues for the wealth management group grew 68% to £226.5m, up from £135.2m in 2016. Gross new inflows were also up by 62% to a record £3.21bn from £1.98bn.

Tilney’s assets under management (AUM) closed out the period at £24.1bn, increasing 60% year-on-year. Approximately 75% of its AUM is now in discretionary mandates and funds.

Chris Woodhouse (pictured), chief executive officer of Tilney, said 2017 was a “record year” for the firm.

“Importantly, we saw a 62% increase in gross new business, demonstrating our ability to grow organically as well as by acquisitions,” he said.

“With our past acquisitions of Towry and Ingenious Asset Management now fully integrated, our scalable business model delivered a doubling of EBITDA to £86.6 million whilst growing our EBITDA margin up to 43%.”

Elsewhere Tilney mentioned it has invested £15m in a new integrated wealth management technology solution that can support the whole business.

Woodhouse said this has been a strategically important project for the firm and confirmed the new technology will be fully implemented shortly.

More M&A

Tilney also said it will look to augment growth with new hires and potential acquisition opportunities.

The wealth manager has been highly acquisitive in recent years, snapping up two asset managers Ingenious and Towry in 2016.

The firm was rumoured to have put in an eleventh hour bid for rival Smith & Williamson, which was weighing up a merger with Rathbones.

Woodhouse said that increased regulation was putting further pressure on discretionary managers to join forces.

“The wealth management profession has of course had to respond to a considerable amount of new regulation in recent years and that is a particular challenge for such a fragmented profession,” he said.

“Against this backdrop the benefits of scale are becoming increasingly apparent. We will continue to look to accelerate our growth further through both hires of talented financial planners and investment managers who see the attractions of our model as well as exploring potential acquisition opportunities where the fit is right.”


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