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European Wealth's funds under management rise as organic switch pays off

The wealth group was managing £1.74bn at the end of June

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Emphasis will be on organic growth going forward

European Wealth Group PLC (LON:EWG)  saw funds under management rise strongly over the past six months.

The wealth group was managing £1.74bn of funds at the end of June, compared to £1.5bn six months earlier.

Organic growth through agents was cited as the growth driver especially in fixed interest, where there was a 35% rise to £639mln.

READ: European Wealth names interim boss as chief executive, John Morton to take an agreed leave of absence

Group revenue rose by 18% to £5.2mln, though losses also increased to £831,000 (£523,000) due to higher interest charges and one-off costs of £309,000 following restructuring.

Since the half year, European Wealth has raised £9.3mln through an equity funding and it expects interest charges will fall substantially over the second half of the year.

As an illustration it said excluding finance and other costs profits rose to £138,000 from £22,000.

READ: A 'sigh of relief' at European Wealth now they're back on an even keel after £8.8mln fundraise

Kenneth West, chairman, added the first half had been a period of consolidation as it completed the refinancing and focused more on organic rather than acquired growth.

“With a much stronger balance sheet and new supportive shareholders, the group will be in a position to continue to expand, with a particular focus initially on the institutional capability within the investment management business, European Investment Management (EIM), where we have already built a formidable reputation over the last four years.  

“It is the board's intention to expand its offering through the introduction of an equity service to the institutional marketplace together with exploring the possibility of launching additional institutional style funds using our UCITs structure in Dublin. “

European Wealth is currently without a full-time chief executive following the granting of a leave of absence to John Morton early in September. Marianne Ismail has taken over as the company’s chief executive officer on an interim basis.

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A 'sigh of relief' at European Wealth now they're back on an even keel after...

On the back of their £8.8mln fundraise, John Morton, chief executive of European Wealth Group Limited (LON:EWG) tells Proactive the main strategy behind the injection of cash was to replace a convertible loan they had in place which was due for repayment. ''It got to the stage where we...

on 18/7/17

2 min read