Harwood sees 'strong outlook' after significant growth in full year earnings
Source - SMW
Financial planner and wealth manager Harwood Wealth Management pointed to a 'strong outlook' as it posted significant growth in revenue and adjusted earnings for the year to 31 October 2017. Assets under influence (AUI) were up 81% to £3.8bn (2016: £2.1bn). Revenue was up 123% to £25.9m (2016: £11.6m) with the newly acquired Network Direct contributing £9.8m of this
Harwood achieved a gross margin of 43% (2016: 61%). Gross margin excluding Network Direct (a structurally lower margin business) was 65%.
Profit after tax was £0.7m (2016: £0.1m), with adjusted EBITDA up 59% to £4.3m (2016: £2.7m) and a final dividend of 2.24p declared.
Net cash generated by operations of £3.7m (2016: £2.4m) and total cash balances at the period end of £19.0m (2016: £10.5m)
Seven acquisitions completed during the period for an aggregate consideration of £2.3m
Commenting, Peter Mann, chairman, said: 'Harwood has reported another strong year of progress, driven by both organic growth and the contributions of acquisitions, underpinning the strategy of strong financial services advice revenues, good quality investment performance and increasing assets, and completing further acquisitions.'