REG - Kingswood Holdings - Kingswood half-year Report
15/09/2022 07:00
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RNS Number : 5145Z Kingswood Holdings Limited 15 September 2022
Half-year Report
Kingswood Holdings Limited ("Kingswood") continues to make strong progress
against strategic objectives and is well positioned to accelerate the delivery
of medium-term targets
· Following record results in 2021, revenue has further grown by
31% in H1'22 (vs H1'21) and operating profit by 47% increasing by £1.5m to
£4.5m confirming the resilience of the business with a highly scalable
platform
· UK trading in line with expectations and has completed 6
acquisitions so far in 2022, adding £2.8m annual operating profit and
c.£0.9bn Assets under Management and Advice (AUM/A) to the Group. Kingswood
has also signed Heads of Terms or is in exclusive discussions with a further 8
UK & Ireland businesses, most of which it expects to conclude in this
financial and calendar year
· Kingswood US increased the number of registered representatives
in its Registered Investment Adviser (RIA) and Independent Broker Dealer (IBD)
business by 6% in the first six months of the year, supporting growth in AUM/A
by $0.2bn to c.$2.7bn
· A complementary focus on organic growth is now delivering a
positive trajectory across all operating segments in H1'22
· Kingswood now manages £9.3bn of client assets, an increase of
37% compared to December 2021
Kingswood Holdings Limited (AIM: KWG), the international, fully integrated
wealth and investment management group, is pleased to announce its unaudited
interim financial results for the half year ended 30 June 2022.
David Lawrence, Kingswood Chief Executive Officer, commented: "We delivered
record levels of revenue and operating profit in all 3 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.
We have continued to implement our buy, build and grow strategy in the UK,
successfully completing the acquisition of 6 UK IFA businesses and have a
strong pipeline for future UK acquisitions. I would like to welcome our 6
recently acquired businesses to the Kingswood Group and wish them every
success with us moving forwards. 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.
Whilst the external environment is less certain in the short-term, the
strategy and trajectory of the business continues as planned. We have a
strong leadership team that is driving tangible results and realising our
ambition to become a leading fully integrated international wealth &
investment management business and I would like to thank all colleagues and
stakeholders for their effort, focus and commitment."
Strategic Highlights
· UK AUM/A increased by £2.2bn to £7.1bn in H1'22 largely driven by
inorganic growth and positive net flows of assets under our management and
advice (AUM/A)
· We completed the acquisition of 6 UK IFA businesses in the first
half of the year which have been successfully integrated into the Group's
operations within 4 months
· 8 UK acquisitions are currently in exclusive due diligence,
comprising a total of £8.7m annual operating profit and £1.9bn AUM/A. These
are expected to conclude in the fourth quarter of 2022
· Kingswood places the client at the heart of everything we do and we
are extremely proud to have 4.8 stars out of 5 on VouchedFor, home to the UK's
most trusted advisers
· Technology has been successfully deployed in the business to
improve the client experience and productivity. Following the launch of our
market leading 'Kingswood Go' app in March 2022, over 1,300 clients have now
registered providing them with easier access to their investment portfolio.
Further investments in technology will deliver an enhanced experience for the
client including digital fact finds and new propositions that will provide
both a face to face and a digitally delivered service
· As we build a business more representative of our society, good
progress has been made to address diversity imbalances across the organisation
- 60% of UK adviser hires in 2022 were female compared to an adviser community
where c.15% of our advisers are female
· Kingswood US has continued to grow organically through the
accelerated recruitment of registered representatives, which supported an 8%
increase in AUM/A to $2.7bn
· The US business continues to build on the exceptional growth
experienced in its Investment Banking operating segment during 2021,
recruiting two new high quality IB groups in H1'22 focussed on mid-market
equity capital markets
Financial Highlights
· Group revenue of £80.4m increased by £18.8m, or 31%, compared
to H1'21 reflecting the impact of acquisitions and healthy organic growth
across both the UK and US
· Wealth Planning revenue of £12.9m increased by 55% compared to H1'21
reflecting the impact of our recent acquisitions and organic revenue growth
from higher new volumes of new business. Investment Management revenue of
£3.6m also increased by 55% compared to the prior year due to the acquisition
of IBOSS Asset Management, with positive net inflows also seen in our Fixed
Income business
· US revenue of £63.9m increased by 26% compared to H1'21.
Recurring revenues increased from 7% in 2021 to 13% in H1 2022. The
Registered Investment Adviser (RIA) and Independent Broker Dealer (IBD)
business reported revenue was £8.0m, 189% higher than H1'21, as an increase
in the number of registered representatives by 12 to 223 supported growth in
AUM by $0.2bn to $2.7bn. Investment Banking (IB) revenue of £55.9m
increased by 16% compared to H1'21 reflecting a strong performance in the
first quarter. IB revenue in the second quarter fell by 20% year-over-year as
macro-economic headwinds and market volatility led to a slowdown in capital
market activity, as demonstrated by a fall in the number of IPOs in the
Americas region by 73% compared to H1'21. On a like for like currency basis,
US revenue increased by 17% to $82.7m compared to H1'21
· Operating Expenditure of £15.6m increased by 46% compared to
H1'21 largely reflecting the impact of acquisitions in the UK (£2.9m) and
higher costs in Kingswood US (£1.5m) due to higher legal, compliance and
regulatory costs. Central costs increased by (£0.5m) to £2.8m reflecting
investment to support a growing business and higher professional fees
· Operating Profit of £4.5m was £1.5m higher than H1'21 reflecting
the additional contributions from the recently acquired businesses. The
Kingswood Board believes Operating Profit is the most appropriate indicator to
explain the underlying performance of the Group. The definition of Operating
Profit is profit before finance costs, amortisation and depreciation, gains
and losses, and exceptional costs (business re-positioning and transaction
costs)
· Profit before Tax for the period was a Loss of £1.7m reflecting
a net £6.3m acquisition related deferred consideration release offset by
£1.9m amortisation and depreciation, £1.5m finance (interest related) costs,
£2.8m business re-positioning and transaction costs and a goodwill adjustment
of £6.4m
· The Group had £20.7m of cash as at June 2022, a decrease of
£22.2m since December 2021, largely driven by acquisition related payments in
the UK and timing of the settlement of Investment Banking commission payments
in the US
£'000 (unless otherwise stated) H1'22 H1'21 Change %
Wealth Management 12,864 8,307 55%
Investment Management 3,588 2,312 55%
Kingswood US 63,937 50,922 26%
Total Revenue 80,389 61,541 31%
Recurring Revenue 28% 19% n/a
Kingswood UK (WM + IM) 5,810 2,830 105%
Kingswood US 1,529 2,519 (39)%
Division Operating Profit 7,339 5,349 37%
Central Costs (2,834) (2,294) 24%
Operating Profit 4,505 3,055 47%
£'000 (unless otherwise stated) H1'22 FY'21 Change %
Total Equity 75,608 76,898 (2)%
Total Cash 20,693 42,933 (52)%
Key Metrics
AUM/A (£m) 9,288 6,772 37%
# of UK Advisers 87 70 24%
# of US RIA/IBD reps 223 211 6%
Change of Auditor
During H1 2022 Kingswood Holdings Limited embarked on a tender process to
undertake future audit activity. Our existing auditor BDO LLP ("BDO") did not
participate in this process. BDO LLP ("BDO") have subsequently resigned as the
Group's auditor and the Board has approved the appointment of PKF Littlejohn
("PKF") as the Group's new external auditor. PKF will conduct the audit of
the Group's financial statements for the financial period to 31 December
2022. BDO has submitted to the Company, in accordance with Companies
(Guernsey) Law, 2008, a letter stating its reason for resigning. A copy of
BDO's letter has, in accordance with section 274 of the Companies (Guernsey)
Law, 2008, today been shared with all shareholders on the Company's website,
along with an explanatory letter from Kingswood Holdings Limited.
Outlook
Our near-term target remains to build our UK AUM/A to in excess of £10bn and
£12.5bn globally, and we are building a pipeline to deliver a proforma £20m
Operating Profit through a combination of acquisitions and organic growth.
Whilst external factors continue to impact the business, Kingswood's
resilience has been demonstrated through a solid performance in the first half
of the year. We have made good progress against our UK inorganic growth
strategy and have generated pleasing organic revenue growth across the
Group. The UK business has proven to have sticky, long-term recurring
revenues that are not directly correlated to market performance. In the
second half of the year, we expect further organic growth and positive net
inflows and it remains well positioned as financial markets recover. The
transactional nature of US Investment Banking revenues means that its revenue
and profit will be dependent on the levels of capital market activity.
Looking ahead we remain confident in the success of our ambitious long-term
growth strategy grounded in supporting our clients to protect and grow their
wealth.
Company Registration No. 42316 (Guernsey)
KINGSWOOD HOLDINGS LIMITED
CONSOLIDATED INTERIM UNAUDITED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022
KINGSWOOD HOLDINGS LIMITED
CONTENTS
Page
Financial and Operational Review 1 - 2
Interim Consolidated Statement of Comprehensive Income 3 - 4
Interim Consolidated Statement of Financial Position 5 - 6
Interim Consolidated Statement of Changes in Equity 7 - 8
Interim Consolidated Statement of Cash Flows 9
Notes to the Interim Consolidated Financial Statements 10 - 26
KINGSWOOD HOLDINGS LIMITED
FINANCIAL AND OPERATIONAL REVIEW
FOR THE PERIOD ENDED 30 JUNE 2022
Group Review:
The business has continued to build momentum in 2022 and revenue and operating
profit have grown despite unfavourable market conditions. Our business
continues to grow organically in both the UK and US and our acquisition
strategy continues to progress as planned. We have a strong leadership
team that is driving tangible results and realising our ambition to become a
leading fully integrated International wealth & investment management
business.
Finance Review:
Despite the continued macro-economic uncertainty and volatility, Kingswood has
delivered double-digit revenue and operating profit growth in the first half
of the year. AUM/A is now £9.3bn and we are reporting organic revenue
growth in the business.
We continue to see the benefits of our buy, build and grow strategy,
completing a further 6 acquisitions in 2022 that will continue the growth
trajectory into 2023 and beyond. The Kingswood Board continues to focus on
ensuring that they maintain and deliver a robust Balance Sheet with a view to
ensuring no deferred liability remains uncovered from a funding perspective.
Our focus is to maximise shareholder returns through Operating Profit growth
combined with minimising our weighted average cost of capital.
Group revenue of £80.4m increased by 31% compared to H1'21, with double digit
growth across all operating segments. Wealth Planning revenue increased by 55%
to £12.9m and Investment Management revenue increased by 55% to £3.6m,
driven by £4.5m and £1.1m growth through acquisitions respectively. Organic
revenue growth across the UK segments demonstrates the synergies generated
through our vertically integrated growth strategy.
US revenues of £63.9m increased by 26% compared to H1'21. Recurring revenues
increased from 7% in 2021 to 13% in H1 2022. The Registered Investment Adviser
(RIA) and Independent Broker Dealer (IBD) business reported revenue was
£8.0m, 189% higher than H1'21, as an increase in the number of registered
representatives by 12 to 223 supported growth in AUM by $0.2bn to $2.7bn.
Investment Banking (IB) revenue of £55.9m increased by 16% compared to
H1'21 reflecting a strong performance in the first quarter. IB revenue in
the second quarter fell by 20% year-over-year as macro-economic headwinds and
market volatility led to a slowdown in capital market activity, as
demonstrated by a fall in the number of IPOs in the Americas region by 73%
compared to H1'21.
Operating Profit for the period was £4.5m, an increase of £1.5m compared to
the prior year, reflecting the impact of acquisitions the underlying business
dynamics. An increase in central costs of £0.5m to £2.8m largely reflects an
increase in the central resources required to support a larger business and
one-off professional fees.
Profit before Tax for the period was a Loss of £1.7m reflecting a net £6.3m
acquisition related deferred consideration release offset by £1.9m
amortisation and depreciation, £1.5m finance (interest related) costs, £2.8m
business re-positioning and transaction costs and a goodwill adjustment of
£6.4m.
The Group had £20.7m of cash as at June 2022, a decrease of £22.2m compared
to December 2021. This is largely driven by acquisition related payments and a
timing impact of the settlement of Investment Banking commission payments in
the US. Net Assets as at 30 June 2022 were £75.6m, a decrease of £1.3m
compared to December 2021.
Our near-term target remains to build our UK AUM/A in excess of £10bn and
£12.5bn globally, and we are building a pipeline to deliver a proforma £20m
Operating Profit through a combination of acquisitions and organic growth.
Although we continue to operate within an uncertain macroeconomic environment
looking ahead, we remain confident in the success of our ambitious long-term
growth strategy grounded in supporting our clients to protect and grow their
wealth.
UK Highlights:
Kingswood UK has delivered a solid financial performance in H1'22, with
revenue and operating profit increasing by 55% and 105% year-over year
respectively.
We successfully completed the acquisition of 6 UK IFA businesses, with all
2022 acquisitions now fully integrated into the Group's operations and there
is a healthy pipeline of future acquisition opportunities at various stages of
study and negotiation, including 8 currently in exclusive due diligence
comprising a total of £8.7m annual operating profit and £1.9bn AUM/A. These
transactions are expected to conclude in the fourth quarter of 2022.
Total UK revenue of £16.5m in H1'22, was £5.8m higher compared to the same
period last year and with 86% of revenues being recurring in nature this
provides the strong, annuity style fee stream required to deliver sustainable,
long term returns to our shareholders.
We expect organic growth in both initial and ongoing fees post integration
through accretive assets under influence and, despite the first half of 2022
bringing with it both a decline in global markets and inflationary pressures,
the UK business generated positive organic revenue growth in H1'22. Organic
growth is delivered through agreements with professional introducers who
recommend Kingswood to their clients, digital channels including SEO and
Google ads, a greater share of wallet through adviser-client meetings and
vertical integration.
The Advisory model demonstrated resilience during COVID and remains resilient
in the current period. Clients tend to seek advice in periods of market
volatility and the adviser-client relationship is the stickiest part of the
value chain. Despite a decline in global markets our clients are typically
invested for the long term, with assets tied up in diversified portfolios.
The hard work and dedication of all our staff has enabled us to continually
deliver against our buy, build and grow strategy at pace whilst maintaining
the highest levels of service and experience for our clients, as reflected in
our most recent 'Vouchedfor' rating of 4.8 / 5.0.
US Highlights:
We maintain a robust recruitment pipeline of new advisers, with a particular
focus on developing predictable and recurring revenue streams from the advice
and management of our client assets and the first half of 2022 we further
expanded our US footprint by adding 12 new registered representatives and
growing our AUM/A by $0.2bn. Our brand recognition continues to develop within
the market, and we are seeing increasing levels of referrals from within our
current adviser base. This has enabled us to continually build a strong
pipeline of new advisers and we expect to onboard a further 10 reps managing
c.$300m AUM/A in 2022.
Kingswood US revenue of $82.7m in the first half of the year increased by
$12.0m or 17% compared to the same period last year. Operating profit
decreased by $1.5m to $2.0m compared to H1'21. The decrease in operating
profit has largely been driven by an increase in operating expenses related to
non-recurring professional fees and higher staff commission payments for the
recruitment of reps, which we will begin to see revenue generation from over
H2'22.
In the second half of the year, we expect our financial performance to
continue to be impacted by market movements and capital market activity in the
US. The transactional nature of US Investment Banking revenues means that they
will be dependent on the levels of capital market activity. Through investment
in the business we remain well positioned as financial markets begin to
recover.
We remain confident in the success of our long term growth strategy of
acquiring small to medium size IBD/RIA firms and recruiting independent
financial advisers through a superior wealth management platform, supporting
practice offering and by removing the management and regulatory burden to
enable advisers to focus on growing their client base. In turn this will
continue to increase our levels of recurring revenues and drive improved
margins.
Six months to Six months to Year ended
30 June 2022 30 June 2021 31 Dec 2021
(unaudited) (unaudited) (audited)
Notes £'000 £'000 £'000
Revenue 3 80,389 61,541 149,716
Direct expenses (60,330) (47,824) (120,497)
Gross profit 20,059 13,717 29,219
Operating staff costs (10,283) (7,631) (15,157)
Other operating costs (5,271) (3,031) (7,735)
Total operating costs (15,554) (10,662) (22,892)
Operating profit 4,505 3,055 6,327
Non-operating costs:
Business re-positioning costs (1,202) (407) (1,564)
Finance costs (1,455) (840) (4,927)
Amortisation and depreciation (1,863) (1,117) (2,399)
Acquisition-related items:
Other (losses) / gains 4 - - (3,056)
Remuneration charge (deferred consideration) 10 6,309 (4,145) (7,009)
Goodwill adjustment 8 (6,364) - -
Transaction costs (1,621) (274) (1,836)
Loss before tax (1,691) (3,728) (14,464)
Tax (139) 3 (761)
Loss after tax (1,830) (3,725) (15,225)
Other comprehensive income / (loss)
Items that may not be reclassified to profit or loss
Exchange differences on translation of foreign operations (417) 368 367
Total comprehensive loss (2,247) (3,357) (14,858)
Six months to Six months to Year ended
30 June 2022 30 June 2021 31 Dec 2021
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
- Owners of the parent company (2,545) (4,857) (17,432)
- Non-controlling interests 715 1,132 2,207
Total comprehensive loss is attributable to:
- Owners of the parent company (2,962) (4,489) (17,065)
- Non-controlling interests 715 1,132 2,207
Loss per share:
- Basic loss per share 5 £ (0.01) £ (0.02) £ (0.08)
- Diluted loss per share 5 £ (0.00) £ (0.02) £ (0.08)
The notes on pages 10 - 26 form an integral part of the financial statements.
30 Jun 2022 30 Jun 2021 31 Dec 2021
(unaudited) (unaudited) (audited)
Notes £'000 £'000 £'000
Non-current assets
Property, plant and equipment 6 916 915 941
Right-of-use assets 7 3,071 2,583 2,719
Goodwill and other intangible assets 8 97,231 46,943 80,255
Investments - 20 -
Deferred tax asset - 392 -
101,218 50,853 83,915
Current assets
Short term investments 72 - 65
Trade and other receivables 7,207 5,067 5,749
Cash and cash equivalents 20,693 24,733 42,933
27,972 29,800 48,747
Total assets 129,190 80,653 132,662
Current liabilities
Trade and other payables 18,515 20,077 26,084
Deferred consideration payable 10 14,286 900 7,706
32,801 20,977 33,790
Non-current liabilities
Deferred consideration payable 10 10,304 3,810 14,482
Other non-current liabilities 2,956 9,834 2,915
Deferred tax liability 7,521 1,889 4,577
Total liabilities 53,582 36,510 55,764
Net assets 75,608 44,143 76,898
Equity
Share capital 11 10,846 10,846 10,846
Share premium 11 8,224 8,224 8,224
Preference share capital 12 70,150 37,550 70,150
Other reserves 11,597 (487) 11,041
Foreign exchange reserve 417 (459) (488)
Retained (loss) (27,638) (12,359) (23,800)
Equity attributable to the owners of the Parent Company 73,596 43,315 75,973
Non-controlling interests 2,012 828 925
Total equity 75,608 44,143 76,898
The notes on pages 10 - 26 form an integral part of the financial statements.
The financial statements of Kingswood Holdings Limited (registered number
42316) were approved and authorised for issue by the Board of Directors, and
signed on its behalf by:
Chairman
Date:
KINGSWOOD HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2022
Share capital and share premium Deferred share capital Preference share capital Other reserves Foreign exchange reserve Retained earnings Equity attributable to the owners of the parent Company Non-controlling interests Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2021 19,070 - 37,550 (519) (855) (6,159) 49,087 1,065 50,152
Loss for the period - - - - - 4,857 4,857 (1,132) 3,725
Amounts attributable to NCI - - - - - - - 32 (32)
Elimination of local goodwill on consolidation - - - - - (1,343) 1,343 (1,337) (2,680)
Foreign exchange gain - - - - 368 - 368 - 368
Share based remuneration - - - 60 - - 60 - 60
Balance at 30 June 2021 (unaudited) 19,070 - 37,550 (459) 487 (12,359) 43,315 828 44,143
(Loss) / profit for the period - - - - - (12,575) (12,575) 1,075 (11,500)
Dividends due to NCI - - - - - - - (1,033) (1,033)
Other adjustment - - - - - 1,134 1,134 - 1,134
Issue of preference share capital - - 32,600 - - 32,600 - 32,600
Share based remuneration - - - 34 - - 34 - 34
Preference share capital reserve 11,466 11,466 - 11,466
Foreign exchange loss - - - - (1) - (1) 55 54
Balance at 31 December 2021 (audited) 19,070 - 70,150 11,041 (488) (23,800) 75,973 925 76,898
Share capital and share premium Deferred share capital Preference share capital Other reserves Foreign exchange reserve Retained earnings Equity attributable to the owners of the parent Company Non-controlling interests Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
(Loss) / profit for the period - - - - - (2,545) (2,545) 715 (1,830)
Movement on NCI - - - - - - - 372 372
Consolidation adjustment - - - - - (1,293) (1,293) - (1,293)
Foreign exchange movement - - - - 905 - 905 - 905
Share based remuneration - - - 556 - - 556 - 556
Foreign exchange gain - - - - - - - - -
Balance at 30 June 2022 (unaudited) 19,070 - 70,150 11,597 417 (27,638) 73,596 2,012 75,608
Note 11 provides further details of, and the split between, Share Capital and
Share Premium.
Additional reserves consist of foreign exchange translation, other reserves
including share-based remuneration and expenses charged against reserves.
The notes on pages 10 - 26 form an integral part of the financial statements.
KINGSWOOD HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 JUNE 2022
Period Period Year ended
30 Jun 2022 30 Jun 2021 31 Dec 2021
(unaudited) (unaudited) (audited)
Notes £'000 £'000 £'000
Net cash generated from / (used in) operating activities 13 (8,989) 1,679 1,741
Investing activities
Property, plant and equipment purchased (50) (529) (127)
Acquisition of investments (13,180) - (12,720)
Remuneration charge (deferred consideration) (173) - (738)
Net cash used in investing activities (13,403) (529) (13,585)
Financing activities
Proceeds from issue of shares - 20,000 52,600
Interest paid (11) (12) (58)
Lease payments (454) (304) (650)
Dividends paid to non-controlling interests - - (1,272)
New loans (repaid) / loans received (156) - 18
Net cash (used in)/generated from financing activities (621) 19,684 50,638
Net (decrease)/increase in cash and cash equivalents (23,013) 20,834 38,794
Cash and cash equivalents at beginning of Period 42,933 3,899 3,899
Effect of foreign exchange rates 771 - 240
Cash and cash equivalents at end of Period 20,691 24,733 42,933
Prior period financials have been restated to correctly recognise contingent
deferred consideration payments, linked to the continued employment of the
acquiree's employees, as an operating cash outflow in the Consolidated
Statement of Cash Flows. Previously all deferred consideration payments
related to acquisitions were included in the deferred consideration line
within net cash used in investing activities.
In 30 June 2021, the cash outflow reclassified from investing activities to
operating activities was £3,974,702.
The notes on pages 10 - 26 form an integral part of the financial statements.
KINGSWOOD HOLDINGS LIMITED
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2022
1 Accounting policies
General information
Kingswood Holdings Limited is a company incorporated in Guernsey under The
Companies (Guernsey) Law, 2008. The shares of the Company are traded on the
AIM market of the London Stock Exchange (ticker symbol: KWG). The nature of
the Group's operations and its principal activities are set out in the
Strategic Report. Certain subsidiaries in the Group are subject to the FCA's
regulatory capital requirements and therefore required to monitor their
compliance with credit, market and operational risk requirements, in addition
to performing their own assessment of capital requirements as part of the
ICAAP.
1.1 Basis of accounting
The Group's interim condensed consolidated financial statements are prepared
and presented in accordance with IAS 34 'Interim Financial Reporting'. The
accounting policies adopted by the Group in the preparation of its 2022
interim report are consistent with those disclosed in the annual financial
statements for the year ended 31 December 2021.
The information relating to the six months ended 30 June 2022 and the six
months ended 30 June 2021 do not constitute statutory financial statements and
has not been audited. The interim condensed consolidated financial statements
do not include all the information and disclosures required in the annual
financial statements and should be read in conjunction with the Group's most
recent annual financial statements for the year ended 31 December 2021.
1.2 Changes in significant accounting policies
The Group has applied the same accounting policies and methods of computation
in its interim consolidated financial statements as in its 2021 annual
financial statements.
There are a number of standards and interpretations which have been issued by
the International Accounting Standards Board that are effective for periods
beginning subsequent to 31 December 2022 (the date on which the company's next
annual financial statements will be prepared up to) that the Group has decided
not to adopt early. The Group does not believe these standards and
interpretations will have a material impact on the financial statements once
adopted.
1.3 Significant accounting policies
Going concern
The Directors review the going concern position of the Group on a regular
basis as part of the monthly reporting process which includes consolidated
management accounts and cash flow projections and have, at the time of
approving the financial statements, a reasonable expectation that the Group
has adequate resources to continue in operational existence for the
foreseeable future. Accordingly, the Directors continue to adopt the going
concern basis of accounting in preparing the financial statements.
Revenue recognition
Performance obligations and timing of revenue recognition
The majority of the Group's UK revenue, being investment management fees and
ongoing wealth advisory, is derived from the value of funds under management /
advice, with revenue recognised over the period in which the related service
is rendered. This method reflects the ongoing portfolio servicing required to
ensure the Group's contractual obligations to its clients are met. This also
applies to the Group's US Registered Investment Advisor ("RIA") business.
For certain commission, fee-based and initial wealth advisory income, revenue
is recognised at the point the service is completed. This applies in
particular to the Group's US Independent Broker Dealer ("IBD") services, and
its execution-only UK investment management. There is limited judgement needed
in identifying the point such a service has been provided, owing to the
necessity of evidencing, typically via third-party support, a discharge of
pre-agreed duties.
1 Accounting policies
The US division also has significant Investment Banking operations, where
commission is recognised on successful completion of the underlying
transaction.
Determining the transaction price
Most of the Group's UK revenue is charged as a percentage of the total value
of assets under management or advice. For revenue earned on a commission
basis, such as the US broker dealing business, a set percentage of the trade
value will be charged. In the case of one-off or ad hoc engagements, a fixed
fee may be agreed.
Allocating amounts to performance obligations
Owing to the way in which the Group earns its revenue, which is largely either
percentage-based or fixed for discrete services rendered, there is no
judgement required in determining the allocation of amounts received. Where
clients benefit from the provision of both investment management and wealth
advisory services, the Group is able to separately determine the quantum of
fees payable for each business stream.
Further details on revenue, including disaggregation by operating segment and
the timing of transfer of service(s), are provided in note 3 below.
2 Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group's accounting policies, which are described in
note 1, the Directors are required to make judgements, estimates and
assumptions about the carrying amounts of assets and liabilities that are not
readily apparent from other sources. The estimates and associated assumptions
are based on historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates.
Critical judgements in applying the Group's accounting policies
The following are the critical judgements that the Directors have made in the
process of applying the Group's accounting policies that had the most
significant effect on the amounts recognised in the financial statements.
Assessment of control
Control is considered to exist where an investor has power over an investee,
or else is exposed, and has rights, to variable returns. The Group determines
control to exist where its own direct and implicit voting rights relative to
other investors afford KHL - via its board and senior management - the
practical ability to direct, or as the case may be veto, the actions of its
investees. KHL holds 50.1% of voting rights in MHC and its subsidiaries, as
well as a majority stake in the US division's advisory board when grouped with
affiliated entities. The Group has thus determined that the Company has the
practical ability to direct the relevant activities of MHC and its
subsidiaries, and has consolidated the sub-group as subsidiaries with a 49.9%
non-controlling interest.
Estimates and Assumptions
Intangible assets:
Expected duration of client relationships
The Group makes estimates as to the expected duration of client relationships
to determine the period over which related intangible assets are amortised.
The amortisation period is estimated with reference to historical data on
account closure rates and expectations for the future. During the period,
client relationships were amortised over a 10-20 year period.
2 Critical accounting judgements and key sources of estimation uncertainty
Goodwill
The amount of goodwill initially recognised as a result of a business
combination is dependent on the allocation of the purchase price to the fair
value of the identifiable assets acquired and the liabilities assumed. The
determination of the fair value of the assets and liabilities is based, to a
considerable extent, on management's judgement. Goodwill is reviewed annually
for impairment by comparing the carrying amount of the CGUs to their expected
recoverable amount, estimated on a value-in-use basis.
Share-based remuneration:
Share based payments
The calculation of the fair value of share-based payments requires assumptions
to be made regarding market conditions and future events. These assumptions
are based on historic knowledge and industry standards. Changes to the
assumptions used would materially impact the charge to the Statement of
Comprehensive Income.
Deferred tax:
Recoverability of deferred tax assets
The amount of deferred tax assets recognised requires assumptions to be made
to the financial forecasts that probable sufficient taxable profits will be
available to allow all or part of the asset to be recovered.
Leases:
Estimating the incremental borrowing rate
The Group cannot readily determine the interest rate implicit in leases where
it is the lessee, therefore, it uses its incremental borrowing rate to measure
lease liabilities. This is the rate of interest that the Group would have to
pay to borrow over a similar term, and with a similar security, the funds
necessary to obtain an asset of a similar value to the right-of-use asset in a
similar economic environment.
The incremental borrowing rate therefore reflects what the Group 'would have
to pay', which requires estimation when no observable rates are available or
when they need to be adjusted to reflect the terms and conditions of the lease
(for example, when leases are not in the subsidiary's functional currency).
The Group estimates the incremental borrowing rate using observable inputs
(such as market interest rates) when available and is required to make certain
entity-specific estimates (such as the subsidiary's stand-alone credit
rating).
Deferred consideration:
Payment of deferred consideration
The Group structures acquisitions such that consideration is split between
initial cash or equity settlements and deferred payments. The initial value of
the contingent consideration is determined by EBITDA and/or revenue targets
agreed on the acquisition of each asset. It is subsequently remeasured at its
fair value through the Statement of Comprehensive Income, based on the
Directors' best estimate of amounts payable at a future point in time, as
determined with reference to expected future performance. Forecasts are used
to assist in the assumed settlement amount.
3 Business and geographical segments
Information reported to the Group's Non-Executive Chairman for the purposes of
resource allocation and assessment of segment performance is focused on the
category of customer for each type of activity.
The Group's reportable segments under IFRS 8 are as follows: investment
management, wealth planning and US operations.
The Group has disaggregated revenue into various categories in the following
table which is intended to depict how the nature, amount, timing and
uncertainty of revenue and cash flows are affected by economic date and enable
users to understand the relationship with revenue segment information provided
below.
The following is an analysis of the Group's revenue and results by reportable
segment for the year to 31 December 2021. The table below details a full
year's worth of revenue and results for the principal business and
geographical divisions, which has then reconciled to the results included in
the Statement of Comprehensive Income:
Investment management Wealth planning US operations Group Total
Perioded Ended 30 June 2022
Continuing operations: £'000 £'000 £'000 £'000 £'000
Revenue (disaggregated by timing):
Point in time 465 1,776 55,944 - 58,185
Over time 3,123 11,088 7,993 - 22,204
External sales 3,588 12,864 63,937 - 80,389
Direct expenses (717) (519) (59,094) - (60,330)
Gross profit 2,871 12,345 4,843 - 20,059
Operating profit / (loss) 685 5,125 1,529 (2,834) 4,505
Business re-positioning costs (140) (336) (397) (329) (1,202)
Finance costs (1) (70) (3) (1,381) (1,455)
Amortisation and depreciation - (687) 42 (1,218) (1,863)
Remuneration charge (deferred consideration) - (42) - 6,351 6,309
Transaction costs - - - (1,621) (1,621)
Goodwill adjustment - - - (6,364) (6,364)
Profit / (loss) before tax from continuing operations 544 3,990 1,171 (7,396) (1,691)
Tax - (129) 11 (21) (139)
Profit / (loss) after tax from continuing operations 544 3,861 1,182 (7,417) (1,830)
3 Business and geographical segments
Perioded Ended 30 June 2021 Investment management Wealth planning US operations Group Total
Continuing operations: £'000 £'000 £'000 £'000 £'000
Revenue (disaggregated by timing):
Point in time 513 953 48,162 - 49,628
Over time 1,799 7,354 2,760 - 11,913
External sales 2,312 8,307 50,922 - 61,541
Direct expenses (790) (460) (46,574) - (47,824)
Gross profit 1,522 7,847 4,348 - 13,717
Operating (loss) / profit 56 2,774 2,519 (2,294) 3,055
Business re-positioning costs (76) (112) (184) (35) (407)
Finance costs - (50) 5 (795) (840)
Amortisation and depreciation - (522) (15) (580) (1,117)
Remuneration charge (deferred consideration) - (2,128) - (2,017) (4,145)
Transaction costs - (8) - (266) (274)
Profit / (loss) before tax from continuing operations (20) (46) 2,325 (5,987) (3,728)
Tax - - (40) 43 3
Profit / (loss) after tax from continuing operations (20) 46 2,285 (5,944) (3,725)
3 Business and geographical segments
Year Ended 31 December 2021 Investment management Wealth planning US operations Group Total
(audited) 2021 2021 2021 2021 2021
Continuing operations: £'000 £'000 £'000 £'000 £'000
Revenue (disaggregated by timing):
Point in time 881 2,045 118,396 - 121,322
Over time 3,771 15,169 9,431 23 28,394
External sales 4,652 17,214 127,827 23 149,716
Direct expenses (1,476) (913) (118,108) - (120,497)
Gross profit 3,176 16,301 9,719 23 29,219
Operating (loss) / profit 365 5,779 5,123 (4,940) 6,327
Business re-positioning costs (177) (239) (263) (885) (1,564)
Finance costs - (72) 2 (4,857) (4,927)
Amortisation and depreciation - (1,197) (212) (990) (2,399)
Other gains - - - (3,056) (3,056)
Remuneration charge (deferred consideration) - (3,691) - (3,318) (7,009)
Transaction costs - (4) - (1,832) (1,836)
(Loss) / profit before tax from continuing operations 188 576 4,650 (19,878) (14,464)
Tax - (16) (317) (428) (761)
(Loss) / profit after tax from continuing operations 188 560 4,333 (20,306) (15,225)
4 Other (losses) / gains
Six months to Six months to Year Ended
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Additional payments due on acquired businesses - - (2,983)
Unrealised gain/(loss) on stock - - (73)
- - (3,056)
5 Earnings per share
Six months to Six months to Year ended
30 Jun 2022 30 Jun 2021 31 Dec 2021
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Loss from continuing operations for the purposes of basic loss per share, (2,545) (4,857) (17,432)
being net loss attributable to owners of the Group
Number of shares
Weighted average number of ordinary shares for the purposes of basic loss per 216,920,719 216,920,719 216,920,724
share
Effect of dilutive potential ordinary shares:
Share options 8,580,094 14,979,244 5,702,567
Convertible preference shares in issue 469,263,291 271,687,533 271,986,413
Weighted average number of ordinary shares for the purposes of diluted loss 694,764,104 503,587,496 494,609,704
per share
Continous operations:
Basic loss per share £(0.02) £(0.02) £(0.08)
Diluted loss per share £(0.01) £(0.02) £(0.04)
Total loss:
Basic loss per share £(0.02) £(0.02) £(0.08)
Diluted loss per share £(0.01) £(0.02) £(0.04)
6 Tangible Assets
Fixtures and equipment
£'000
Cost
At 1 January 2021 1,380
Additions 79
At 30 June 2021 1,459
Additions 196
At 31 December 2021 1,655
Additions 147
At 30 June 2022 1,802
Accumulated depreciation
At 1 January 2021 453
Depreciation charged in the Period 91
At 30 June 2021 544
Depreciation charged in the Period 170
At 31 December 2021 714
Acquisitions during the year 42
Depreciation charged in the Period 130
At 30 June 2022 886
Net book value
At 30 June 2022 916
At 31 December 2021 941
At 30 June 2021 915
7 Right-of-use assets
Land and buildings
£'000
Cost
At 1 January 2021 3,569
Prior year reclassification (35)
Additions 65
At 30 June 2021 3,599
Additions 490
At 31 December 2021 4,089
Movement due to FX 8
Additions 742
At 30 June 2022 4,831
Accumulated depreciation
At 1 January 2021 741
Prior year reclassification 35
Depreciation charged in the Period 310
At 30 June 2021 1,016
Depreciation charged in the Period 354
At 31 December 2021 1,370
Depreciation charged in the Period 398
At 30 June 2022 1,768
Net book value
At 30 June 2022 3,071
At 31 December 2021 2,719
At 30 June 2021 2,583
8 Goodwill and other intangible assets
Goodwill Other intangible assets Total
£'000 £'000 £'000
Cost
At 1 January 2021 25,684 27,968 53,652
Additions 35 - 35
At 30 June 2021 - - 53,687
Additions - - -
At 30 June 2021 25,719 27,968 53,687
Additions 19,404 14,647 34,051
Movement due to FX 67 - 67
Disposals (40) - (40)
Impairment
At 31 December 2021 45,150 42,615 87,765
Additions 11,226 13,449 24,675
Movement due to FX - - -
Disposals - - -
Impairment (6,364) (6,364)
At 30 June 2022 50,012 56,064 106,076
Accumulated amortisation
At 1 January 2021 2,279 3,757 6,036
Amortisation charged for the Period - - -
Disposals
Charge for period - 708 708
At 30 June 2021 2,279 4,465 6,744
Disposals
Charge for period - 767 767
At 31 December 2021 2,279 5,232 7,511
Disposals
Charge for period 1,335 1,335
At 30 June 2022 2,279 6,567 8,846
8 Goodwill and other intangible assets (continued)
Net book value
As at 30 June 2022 47,733 49,498 97,231
As at 31 December 2021 42,871 37,384 80,255
As at 30 June 2021 23,440 23,503 46,943
For the half year ended 30 June 2022, the Group recorded a goodwill adjustment
charge of £6.4m in respect of the acquisition of iBoss in 2021 linked to the
reduction of the growth earn-out liability (see note 10).
9 Lease liabilities
The lease liabilities are included in trade and other payables and other
non-current liabilities in the statement of financial position.
Land and buildings
£'000
At 1 January 2021 3,234
Additions 65
Interest expense 92
Lease payments (315)
At 30 June 2021 3,076
Additions 517
Interest expense 16
Lease payments (335)
At 31 December 2021 3,274
Additions 735
Interest expense 95
Lease payments (451)
At 30 June 2022 3,653
The Group recognises a right-of-use asset and a lease liability at the lease
commencement date. The right-of-use asset is initially measured at cost, and
subsequently at cost less any accumulated depreciation and impairment losses
and adjusted for certain re-measurements of the lease liability.
9 Lease liabilities (continued)
The lease liability is initially measured at the present value of the lease
payments that are not paid at the commencement date, discounted using the
Group's incremental borrowing rate.
The lease liability is subsequently increased by the interest cost on the
lease liability and decreased by lease payment made.
The Group has applied judgement to determine the lease term for some lease
contracts in which it is a lessee that includes renewal options. The
assessment of whether the Group is reasonably certain to exercise such options
impacts the lease term, which significantly affects the amount of lease
liabilities and right-of-use assets recognised.
10 Deferred consideration payable
Six Months to Six Months to Year Ended
30 June 2022 30 June 2021 31 December 2021
£'000 £'000 £'000
Deferred consideration payable on acquisitions: 24,590 4,710 22,188
- falling due within one year 14,286 900 7,706
- due after more than one year 10,304 3,810 14,482
The deferred consideration payable on acquisitions is due to be paid in cash.
The deferred consideration liability is contingent on performance requirements
during the deferred consideration period. The value of the contingent
consideration is determined by EBITDA and/or revenue targets agreed on the
acquisition of each asset, as defined under the respective Share or Business
Purchase Agreement. As at the reporting date, the Group is expecting to pay
the full value of its deferred consideration as all acquisitions are on target
to meet the requirements.
Previously all deferred consideration payable on acquisitions was recorded as
a deferred liability and included in the fair value of assets. However, in
circumstances where the payment of deferred consideration is contingent on the
seller remaining within the employment of the Group during the deferred
period, the contingent portion of deferred consideration is not included in
the fair value of consideration paid, rather is treated as remuneration and
accounted for as a charge against profits over the deferred period.
During the year, deferred consideration as remuneration was a credit through
profit or loss of £6,309,121, mainly due to a reduction in growth earn-out
liabilities for the iBoss business (2021: £7,008,600 expense).
11 Share capital
Six months to Six months to Year ended Six months to Six months to Year ended
30 June 2022 30 June 2021 31 Dec 2021 30 June 2022 30 June 2021 31 Dec 2021
(unaudited) (unaudited) (audited) (unaudited) (unaudited) (audited)
Shares Shares Shares £'000 £'000 £'000
Ordinary shares issued:
Fully paid 216,920,719 216,920,719 216,920,719 10,846 10,846 10,846
216,920,719 216,920,719 216,920,719 10,846 10,846 10,846
Share capital and share premium
Number of ordinary shares Par value Share premium Total
'000 £'000 £'000 £'000
At 1 January 2020 216,921 10,846 8,224 19,070
Issued during year - - - -
As at 30 June 2021 216,921 10,846 8,224 19,070
At 31 December 2021 216,921 10,846 8,224 19,070
Issued during year - - - -
At 30 June 2022 216,921 10,846 8,224 19,070
Ordinary shares have a par value of £0.05 per share. They entitle the holder
to participate in dividends, and to share in the proceeds of winding up the
company in proportion to the number of, and amounts paid on, shares held. On a
show of hands, every holder of ordinary shares present at a meeting in person
or by proxy, is entitled to one vote and upon a poll each share is entitled to
one vote.
Kingswood Holdings Limited does not have a limit on the amount of authorised
capital.
As at 31 December 2021, KPI (Nominees) Limited held 143,720,906 Ordinary
Shares, representing 66.3 per cent of ordinary shares in issue at year end.
12 Preference share capital
Six Months to Six Months to Year Ended Six Months to Six Months to Year Ended
30 June 2022 30 June 2021 31 Dec 2021 30 June 2022 30 June 2021 31 Dec 2021
(unaudited) (unaudited) (audited) (unaudited) (unaudited) (audited)
Shares Shares Shares £'000 £'000 £'000
Convertible preference shares issued:
Fully paid 77,428,443 44,828,443 77,428,443 77,428 44,828 77,428
77,428,443 44,828,443 77,428,443 77,428 44,828 77,428
Preference share capital movements are as follows:
Number of shares Par value
'000 £'000
At 1 January 2021 5,728 5,728
Issued during year 39,100 39,100
At 30 June 2021 44,828 44,828
Issued during year 32,600 32,600
At 31 December 2021 77,428 77,428
Issued during year - -
At 30 June 2022 77,428 77,428
Six Months to Six Months to Year Ended
30 June 2022 30 June 2021 31 Dec 2021
(unaudited) (unaudited) (audited)
Equity component 70,150 37,550 70,150
Liability component - 7,469 -
70,150 45,019 70,150
12 Preference share capital (continued)
On 12 September 2019, Kingswood Holdings Limited entered into a subscription
agreement with HSQ INVESTMENT LIMITED, a wholly owned indirect subsidiary of
funds managed and/or advised by Pollen Street, to subscribe for up to 80
million irredeemable convertible preference shares, at a subscription price of
£1 each (the Subscription). Pollen Street is a global, independent
alternative asset investment management company, established in 2013 with
currently £3.2 billion gross AUM across private equity and credit strategies,
focused on the financial and business services sectors, with significant
experience in speciality finance.
All irredeemable convertible preference shares convert into new ordinary
shares at Pollen Street Capital's option at any time from the earlier of an
early conversion trigger or a fundraising, or automatically on 31 December
2023. Preferential dividends on the irredeemable convertible preference shares
accrue daily at a fixed rate of five per cent per annum from the date of
issue. Effective 17 December 2021 onwards, these will be settled via the issue
of additional ordinary shares, thereby extinguishing the liability component.
13 Notes to the cash flow statement
Cash and cash equivalents comprise cash and cash equivalents with an original
maturity of three months or less. The carrying amount of these assets is
approximately equal to their fair value.
Six Months to Six Months to Year Ended
30 June 2022 30 June 2021 31 Dec 2021
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Loss before tax (1,691) (3,728) (14,464)
Depreciation and amortisation 1,863 1,117 2,399
Goodwill adjustment 6,364 - -
Finance costs 1,455 840 4,927
Remuneration charge (deferred consideration) (7,399) 170 234
Share-based payment expense 556 60 94
Other losses / (gains) - - 1,281
Foreign exchange gain 12 4 (6)
Tax paid (139) (40) (318)
Operating cash flows before movements in working capital 1,021 (1,577) (5,853)
(Increase)/decrease in receivables 786 (863) (449)
Increase/(decrease) in payables (10,796) 4,119 8,043
Net cash inflow / (outflow) from operating activities (8,989) 1,679 1,741
14 Financial instruments
The following table states the classification of financial instruments and is
reconciled to the Statement of Financial Position:
30 Jun 2022 30 Jun 2021 31 Dec 2021
Carrying amount Carrying amount Carrying amount
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Financial assets measured at amortised cost
Trade and other receivables 5,846 3,790 4,308
Cash and cash equivalents 20,693 24,733 42,933
Financial liabilities measured at amortised cost
Trade and other payables (16,530) (17,495) (23,826)
Other non-current liabilities (222) - (318)
Lease liability (3,653) (3,076) (3,274)
Preference share liability - (7,469) -
Financial liabilities measured at fair value through profit and loss
Deferred consideration payable (24,590) (4,710) (22,188)
(18,456) (4,227) (2,365)
Financial instruments not measured at fair value includes cash and cash
equivalents, trade and other receivables, trade and other payables, and other
non-current liabilities.
Due to their short-term nature, the carrying value of cash and cash
equivalents, trade and other receivables, and trade and other payables
approximates fair value.
Item Fair value Valuation technique Fair value hierarchy level
£'000
Deferred consideration payable 24,590 Fair value of deferred consideration payable is estimated by discounting the Level 3
future cash flows using the IRR inherent in the company's acquisition price.
15 Related party transactions
Remuneration of key management personnel
The remuneration of the Directors, who are the key management personnel of the
Group, is set out below in aggregate for each of the categories specified in
IAS 24 Related Party Disclosures.
Six months to Six months to Year ended
30 June 2022 30 June 2021 31 Dec 2021
(unaudited) (unaudited) (audited)
2022 2021 2021
£'000 £'000 £'000
Short-term employee benefits 103 371 340
Termination benefits - - -
Share based payments - 34 -
103 405 340
Other related parties
During the period, KHL incurred fees of £58,333 (30 June 2021: £62,500; 31
December 2021: £137,500) from KPI (Nominees) Limited in relation to
Non-Executive Director remuneration. At 30 June 2022, £nil of these fees
remained unpaid (30 June 2021: £37.500; 31 December 2021: £nil).
Fees received from Moor Park Capital Partners LLP, in which Gary Wilder holds
a beneficial interest, relating to property related services provided by KHL
totalled £23,708 for the period ended 30 June 2022 (30 June 2021: £23,708;
31 December 2021: £23,090), of which £nil (30 June 2021: £nil; 31 December
2021: £nil) was outstanding at 30 June 2021.
Fees paid for financial and due diligence services to Kingswood LLP and
Kingswood Corporate Finance Limited, in which Gary Wilder and Jonathan Massing
hold a beneficial interest, totalled £420,807 for the period to 30 June 2022
(30 June 2021: £201,829; 31 December 2021: £384,750), of which £nil (30
June 2021: £5,430; 31 December 2021: £nil) was outstanding at 30 June 2022.
16 Ultimate controlling party
As at the date of approving the financial statements, the ultimate controlling
party of the Group was KPI (Nominees) Limited.
17 Events after the reporting date
Acquisition of Smith Pearman & Associates
On 29th July 2022, Kingswood completed the acquisition of Smith Pearman &
Associates, an independent financial advice company based in Hampshire.
Established for over 35 years, Smith Pearman & Associates look after over
240 clients with over £70m AUA in the Hampshire region. They offer tailored
services to high net-worth individuals with an existing portfolio, or new
investment requirements, based on personal goals and aspirations.
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