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European Wealth buys book of business from Towry Asset Management

The assets under management (AuM) attributable to these assets were worth £120mln at the end of March.

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Chief executive John Morton said: "This acquisition further strengthens the group's ability to offer integrated investment management and financial planning services across the UK and internationally.”

European Wealth Group Ltd (LON:EWG) is set to buy a profitable book of business from Towry Asset Management Ltd for up to £1mln.

The assets under management (AuM) attributable to these transferring assets were worth around £120mln at the end of March this year and last financial year they made a profit of around £0.2 million.

Clients of these assets are mainly based in South Africa and the deal will further broaden the range of private and corporate clients European handles, it said.

European's chief executive John Morton said: "This acquisition further strengthens the group's ability to offer integrated investment management and financial planning services across the UK and internationally.

"The addition of this book of business will be enhanced by our ability to offer direct international equity investment to our clients."

Separately today the firm said it had raised  £291,100 through an investor share subscription by at 50p a share. The funds will be used to  pay Towry a further £200,000 for the benefit of a loan owing it by a consultant who is transferring to European Wealth.

This is on top of the  £1mln consideration.

Following this, non-exec chairman Kenneth (Buzz) West is beneficially interested in  1.36% of the enlarged capital, while chief operating officer Simon Ray is interested in 1.02%.

European Wealth shares added 0.96% to 52.5p on the day.

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Price: 19.8 GBX

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Market Cap: £42.95 m
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