TIDMARP
RNS Number : 8138D
Ashcourt Rowan PLC
02 May 2013
Ashcourt Rowan Plc (ARP:LSE):Trading Update
2 May 2013
Delivering underlying profit growth: Ashcourt Rowan plc
announces a trading update for the 12 months ending 31 March
2013
Jonathan Polin, Ashcourt Rowan plc Group Chief Executive
commented: "This has been a year of substantial improvement
delivering underlying EBITDA above estimates and a firm platform
for growth leaving us poised to take advantage of many
opportunities in the sector."
Financial highlights:
-- Second half revenues returning to growth (GBP1.1 million
increase on H1 to GBP17.1 million). As expected, full year revenue
is below the previous year as a result of restructuring and the
facilitated exit of selected managers.
-- Cost savings targets exceeded during first half with further cost reductions in H2.
-- Underlying EBITDA (before exceptionals) 2012/13 ahead of market estimates at GBP2.8 million.
-- Underlying EBITDA margin increases from 2% 2011/12 to double
digit in H2 2012/13, earlier than indications given to investors at
the equity raising in December 2011.
-- Total funds under management and influence total GBP3.7
billion. Discretionary assets under management stable at GBP1.6
billion, with organic growth offsetting expected reduction as a
result of the facilitated exit of selected managers during
2012.
-- Balance sheet remains strong with no debt and cash stable
around level reported in the Interims*, with underlying cash
generation financing Change Management Programme exceptionals.
Figures included in financial highlights are based on unaudited
results and as such are subject to year-end audit adjustment and
include personal pension administration business disposal after
year end.
*which was GBP8.1 million.
Operational highlights
-- Asset management operating platform outsourced to TD Wealth
and is now live with full migration to be completed during May and
early June.
-- Our change management project to modernise the business is on target for completion in June.
-- As recently announced, the agreed sale of subscale pension
administration business to Mattioli Woods plc for up to GBP1.3
million of which GBP700k is upfront, to simplify business and to
focus on core areas. 2012/13 numbers included in financial
highlights above.
-- Investment made in the senior executive team to take the business forward:
o Gaius Jones, former main board director of Towry, joins as the
new CEO of financial planning.
o Asset management significantly strengthened by the arrival of
former Brewin Dolphin senior investment director Harry Burnham in
October, and David Palmer who joined in February from Generali as
the business director.
o New group head of marketing Emily Morris brings recognised
sector experience.
o New heads of Risk and asset management middle office being
added: Niral Parekh, has already joined from E&Y and Kevin
Norman joins in mid May from Rathbones.
Jonathan Polin, Ashcourt Rowan plc Group Chief Executive
commented:
"Over the last twelve months a huge amount of work has been
completed to re-engineer the company to ensure we are fit for
purpose to meet the demands of the new regulatory environment and
to take advantage of the opportunities the dislocation of the
sector affords us.
"We have stabilised the company's financial position, worked to
embed new systems, controls and ICT infrastructure, and revitalised
our investment offering and client proposition in preparation for
the implementation of RDR leaving us strongly placed to grow.
"We have also signed an agreement to outsource the asset
management operations to the TD Wealth platform which comes into
effect for new clients immediately and for existing clients from
the end of May. This move and the sale of our SIPP and SSAS
business to Mattiolli Woods and the integration of our Savoy
business within Ashcourt Rowan Asset Management completed the key
structural changes we needed to make to simplify the business,
reduce the number of regulated entities and allow management to
focus on growing our asset management and financial planning
businesses.
"Despite the huge challenges that we have overcome this year, I
am delighted that the year-end financials are positive and
exceeding expectations. I am especially pleased at the quality of
individuals we have been able to attract to the company, which
bears testament to the regard in which the Group is held amongst
many of our peers in the sector.
"Our focus in 2013/ 2014 will be on delivering growth for the
company, repairing the revenue line following some agreed
departures of assets and managers last year, and growing new
revenue lines organically.
"We intend to publish our full year audited results on Tuesday 2
July 2013."
About Ashcourt Rowan
Ashcourt Rowan provides personalised financial planning and
investment management advice to private and corporate clients,
trusts, pension funds and charities throughout the UK. Its team of
professionally-qualified, highly experienced financial planners and
investment managers offer a service that is underpinned by sound
research and analysis. Its structured approach to financial
planning and investment management, along with clear explanations
of financial products, is designed to help its clients make best
use of their money, to preserve and build their wealth.
The firm is listed on AIM and has 12 offices across the UK. It
is headquartered in the City of London. Further information on
Ashcourt Rowan can be found at www.ashcourtrowan.com.
For further information please contact:
Maitland Ashcourt Rowan
Andrea Coleman/ Daniel Yea Emily Morris, group head of
Tel: 020 7379 5151 marketing
Email: ashcourtrowan@maitland.co.uk Tel: 020 7871 7250
Email: emilymorris@ashcourtrowan.com
Canaccord Genuity Limited
Martin Green/Bruce Garrow
Tel: 020 7523 8350
This information is provided by RNS
The company news service from the London Stock Exchange
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