European Wealth's assets under management increased by 25% to £1.5bn in the year to the end of December.
The group also announced that it had entered into a subscription and underwriting agreement with Astoria and Kingswood to raise £9.2m.
The group said the fundraising comprised a subscription by Astoria and Kingswood to raise gross proceeds of £6.14m through the issue of 48,003,580 new ordinary shares at 12.8p apiece, and an open offer to shareholders, which was fully underwritten by Astoria and KPI, to raise gross proceeds of approximately a further £3.07m through the issue of up to 24,001,790 shares.
It said the net proceeds of around £8.8m would be used to repay all sums owing under the Kingswood bridge facility, approximately £2.0m of other loans and accrued interest and to settle the potential £1.14m of deferred consideration that was due to be paid out in cash between now and December 2018 to vendors of firms acquired by the group.
It said this would leave the company debt free with working capital flexibility and balance sheet strength to allow it to pursue its stated strategy.
The group said three acquisitions were successfully completed in the year to the end of December:
− In January 2016, the Group acquired the financial planning client list from Phoenix Invest Limited which added £20m of funds under influence, integrated into European Financial Planning
− In September 2016, the Group completed the acquisition of CIMCO Partners Management Limited, changing the name to European Wealth Gibraltar Limited, which manages the G20 Absolute Return fund. This acquisition added US$22m of funds under management
− In October 2016, the Group acquired a book of business and certain related assets from Towry Asset Management, which will bring an estimated £80m-£100m of additional funds under management to the Group
The group said income from trading activities increased by 23% to £9.4m (2015: £7.7m) due to organic growth and growth from acquisitions.
Group recurring revenue increased to £5.3m (2015: £4.8m) and financial Planning recurring revenue increased to 79% (2015: 72%)