For the year ended 31 December, 2016, the financial planning and investment group Tilney has announced record AUM, revenues and profits.
Results highlights include:
- 138% increase AUM to £22.4bn (2015: £9.4bn);
- completion of the acquisitions of Ingenious Asset Management (April 2016) and the Towry Group (July 2016);
- 209% increase in run-rate revenues to £213.1m (2015: £69.0m);
- 268% increase in run-rate EBITDA to £64.7m (2015: £17.6m);
- 19% increase in run-rate EBITDA as a percentage of revenues to 30.4% (2015: 25.5%);
- increase in number of advisers from 146 to 328 at year end;
- increase in gross new money per adviser from £9.8 million to £10.0 million.
The group also said that it had started a £15m investment programme in new technology and systems to enhance client experience.
Chief Financial Officer Wadham Downing said: “2016 was a record breaking year for Tilney with the landmark acquisitions of Towry and Ingenious Asset Management, and strong investment returns for our clients, propelling our assets under management 138% higher to £22.4 billion. This has had a transformational effect on our turnover and earnings both on a reported and run-rate basis. Had both businesses been owned by Tilney for the entirety of 2016, then adding on those earlier months on a pro forma basis EBITDA would have been £65 million – a threefold increase on 2015.
“As integration synergies flow through and we bring the combined businesses onto one back office system, this will enable us to continue to grow not only our EBIDTA, but also demonstrate operational leverage through growing EBITDA margins up from the record 30.4% level the business achieved in 2016.”
Chief Executive Officer Peter Hall added: “In addition to the successful delivery and integration of two major acquisitions in 2016, the year also saw an acceleration of organic growth in the original Tilney Bestinvest business. The gross new money per adviser of £10 million demonstrates the strong organic growth achieved at the same time as the Towry and Ingenious integrations were taking place.
“With a team of 328 advisers and a local office presence in 30 towns and cities across the UK, Tilney is now in a very strong position for the future. Our strategic vision is to become the UK‘s leading wealth management business with a dual expert approach that offers clients a highly professional and personalised service across both financial planning and investment management.
“After a landmark year in 2016 we have also had a great start to 2017. We have completed the restructuring of the business and Towry integration, launched a new ‘best of both’ client service proposition and are investing heavily in new technology solutions to enhance client experience. We have also initiated a major marketing campaign to raise our profile under the new Tilney branding and have an active recruitment programme for additional advisers. With these foundations in place, I am confident that we are exceptionally well positioned to deliver a great service to both existing and new clients right across the UK, whatever their financial needs.”
