Proactive Investors - Run By Investors For Investors

European Wealth's name change signals new era for the group

Subject to shareholder approval, the holding company will change its name to Kingswood Holdings Limited after the Annual General Meeting later today
Rising investments
The company has formed a new research-led central investment team and is launching new investment mandates including an AIM portfolio and ethical strategies

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.

READ: European Wealth pockets £1.31mln as Astoria Investments increases stake to 18%

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.

READ: European Wealth Group seeing benefits already from recent restructuring

"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.

View full KWG profile View Profile

Kingswood Holdings Limited Timeline

Related Articles

1555371315_shutterstock_744825085.jpg
April 16 2019
The specialty finance company offers revenue-based financing, allowing SaaS (Software as a service) and knowledge-based start-ups to 'pay as they grow'
Money
April 24 2019
Kingswood has a new management team in place to implement the group’s three-year growth strategy.
elephants
April 02 2019
Directors have 'a reasonable degree of certainty' that positive basic earnings per share will be achieved in 2018

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use