Wealth management group European Wealth Group Limited (LON:EWG) saw further growth in funds under management and administration (FUMA) in the first half of 2018.
FUMA at the end of June stood at £1.8bn, up from £1.7bn at the end of 2017 and a year earlier.
The group, which is set to change its name to Kingswood Holdings later today, saw revenue decline to £4.8mln in the first half of 2018 from £5.2mln in the same period of 2017. The decline was largely because of a spike in financial planning revenues at the end of the 2016/17 tax year that was not repeated the following year.
The loss before tax deepened to £1.5mln from £800,000 the year before, which the group attributed primarily to the group’s business in Switzerland, plus additional costs associated with restructuring, legal fees and the rebranding of the operational business to KW Wealth.
The restructuring has led to significant cost reductions while a refinancing of the group in May has resulted in the group having a debt-free balance sheet for the first time since the company was admitted to AIM.
"The group has now entered a new phase of development,” said Marianne Ismail, the chief executive of EWG.
"The board and management have established four strategic goals for the group: to deliver strong earnings growth for our shareholders; to achieve continued improvement in the client experience; to build our new brand; and finally, to maintain the highest standards of corporate governance and risk management.
"As we prepare for the future we have restructured and streamlined our investment management team, hired new investment managers and added to our in-house research team. We have also recruited several wealth planners in a very tight market,” she added.
The group said it is keen to grow both organically and dynamically by acquisition in the UK and the US.
"The group has a strong and scalable operating platform with the capacity to support incremental revenue and earnings growth from future acquisitions, delivering improved profitability for the group as a whole. With all the positive changes which have taken place, the board looks to the future with confidence," Ismail said.