Channel Islands-based wealth management firm Collins Stewart today released its preliminary results. The highlights included:
- A 34% increase in assets under management and administration (AUM) to £7.9bn during 2010, boosted by the acquisitions of Guernsey-based wealth manager Corazon Capital and Andersen Charnley in the UK.
- A 59% increase in Discretionary AUM to £2.7bn during 2010.
- Net organic inflows of £354m, equating to an organic growth rate of 6.0%. There were inflows both from direct private clients and intermediaries, both in the UK and internationally, demonstrating the breadth of the business.
- An increase in revenues of 11% to £48.3m. Recurring revenues, including management fees, now account for 53% of overall revenues (up from 48% in 2009).
- An increase in underlying operating profit of 10% to £11.1m, an operating margin of 23.0%. The profit increase reflects a positive part-year contribution from both acquired businesses and a continued tight rein on controllable costs. However, profits were affected by the increased costs of regulation.
- The acquisition of Corazon has been largely integrated and the integration of Andersen Charnley is progressing well. Both acquisitions are expected to enhance earnings and shareholder value from 2011 onwards as planned.
- CSWM continued to receive external recognition of its independent, client-focused services, winning industry awards based on client votes for discretionary portfolio management and advisory stockbroking.
Grahame Lovett, Head of CSWM Offshore, commented: “2010 was a busy year for both Collins Stewart Wealth Management and the wealth management industry. We expect 2011 to be no different, with many challenges and opportunities ahead. We look forward to making continued progress towards our strategic target of ‘10 by 12’ – the achievement of £10bn of AUM by the end of 2012 – having grown assets from £5.9bn to £7.9bn in 2010.”