REG - Kingswood Holdings - Trading update

Kingswood HoldingsAnnouncement

01/02/2022 07:00

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RNS Number : 2803A  Kingswood Holdings Limited  01 February 2022

1(st) February 2022

KINGSWOOD HOLDINGS LIMITED

("Kingswood" or the "Company")

 

Trading Update

 

Kingswood Holdings Limited (AIM: KWG), the international, fully integrated
wealth and investment management group, provides an update on trading for the
year ended 31 December 2021.

 

Subject to audit, the Company expects to report full year revenues of
approximately £148.8m (2020: £25.5m) and an operating profit of
approximately £6.9m (2020: £0.9m), in line with market expectations.

 

Highlights

·      Record revenues in the year with an increase of 484% on the
prior year, through a successful number of acquisitions in the UK and growth
in the Investment Banking and RIA/Broker Dealer businesses in the US.

 

·      The Group has £41.3m of cash as at December 2021, an increase
of £37.5m since 31 December 2020. This is largely driven by further
investment from our private equity partner Pollen Street Capital (£27.9m net
of acquisition related payments) and £11.0m cashflow generated from operating
activities, mainly in the US (£7.5m of which is timing of the settlement of
Investment Banking commission payments).

 

o  In December 2021, Kingswood issued a further 32.6m new £1 convertible
preference shares to Pollen Street Capital taking the total investment since
2019 to £77.4m.

 

·     In 2021 Kingswood announced the acquisition of Admiral Wealth
Management Ltd, Smythe and Walter Ltd, Money Matters (North-East) Ltd and
Metnor Holdings Ltd. It also announced the acquisition of DJ Cooke Ltd in
January 2022 and Allotts Financial Services Limited in February 2022 with a
further two acquisitions expected to complete in Q1 2022. AUM/A was reported
as £6.2bn at the 2021 Interims and this is expected to increase to £8.7bn
with the completion of these two acquisitions.

 

·     The Kingswood US Investment Banking business completed over 100
transactions with a total of over $9.0bn capital raised for clients. The
Kingswood US wealth management business increased its advisor representatives
to 208 by December 2021, with $2.5bn of client assets. A further seven
advisors have been recruited in January 2022 who collectively oversee $295m in
client assets. Also in January 2022, Kingswood Capital Partners and Skyway
Capital Markets LLC announced an exclusive partnership in which the Skyway
investment banking team will work closely with Kingswood advisors and their
clients to execute M&A transactions.

 

Gary Wilder, Group CEO of Kingswood, commented: "2021 was a transitional year
for Kingswood, delivering record levels of revenue and profit for the Group.
We have a strong, well-capitalised balance sheet and with the support of
Pollen Street Capital have continued our successful buy, build, grow and
integrate strategy in the UK led by our UK CEO David Lawrence and our organic
recruitment and partnership growth strategy in the US led by our US CEO Mike
Nessim. The US business has delivered exceptional growth in 2021 and we are
confident of further accelerated growth on both sides of the Atlantic in 2022.
Kingswood remains focused on building its long-term value strategy, centred
around vertical complementary growth business lines in the international
independent retail wealth and investment management sectors and has both the
balance sheet strength and outstanding people to deliver this."

 

ENDS

 

For further details, please contact:

   Kingswood Holdings Limited                           +44 (0)20 7293 0730
   David Lawrence                                       www.kingswood-group.com (http://www.kingswood-group.com/)
   finnCap Ltd (Nomad & Broker)                            +44 (0)20 7220 0500
   Stuart Andrews / Simon Hicks / Abigail Kelly
   GreenTarget (for Kingswood media)                       +44 (0)20 7324 5498

   Jamie Brownlee / Alice Gasson / Ellie Basle             Jamie.Brownlee@greentarget.co.uk
                                                        (mailto:Jamie.Brownlee@greentarget.co.uk)

 

About Kingswood

Kingswood Holdings Limited (trading as Kingswood) is an AIM-listed (AIM: KWG)
international fully integrated wealth management group with circa £7.9bn of
Assets under Advice and Management. It services circa 15,900 clients from a
growing network of offices in the UK including Abingdon,
Beverley, Conisbrough, Darlington, Derby, Grimsby, Harrogate, Hull,
Lincoln, London, Maidstone, Newcastle, Sheffield (2), Worcester and York
with overseas offices in Johannesburg, South Africa and Atlanta, New York
and San Diego in US.

Kingswood offers a range of trusted investment solutions to its clients, which
range from private individuals to some of the UK's largest universities and
institutions, including investment advice and management, personal and company
pensions and wealth planning. Kingswood is focused on becoming a leading
player in the wealth and investment management market through targeted
acquisitions in the UK and US, creating a global business through strategic
partnerships.

Registered office address: Mont Crevelt House, Bulwer Avenue, St. Sampson,
Guernsey, GY2 4LH

 

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