Member Article

Smith & Williamson announces strong interim results

Group registers all-time-highs for operating income, adjusted operating profit, funds under management and earnings per share*

Smith & Williamson, the accountancy, tax and investment management group, with offices in Manchester, delivered continued growth in the six months to 31 October 2014, with a solid performance from the Investment Management and Banking division as well as the Tax and Business Services division. Adjusted operating profits grew evenly across both sides of the business to deliver 14% growth overall, building on the previous year’s performance.

Highlights for the six months ended 31st October 2014 against the comparative period for the previous year, reveal record achievements:

• Operating income of £103.3 million, a 6% rise compared with 2013/14 (£97.3m)
• Adjusted operating profit of £19.1 million, a 14% rise compared with 2013/14 (£16.8m)
• Adjusted basic earnings per share of 28.7 pence, a 16% rise compared with 2013/14 (24.7p)*
• £15.3 billion Funds Under Management for Investment Management and Banking (4% up on 2013/14 £14.7bn)

Double digit growth in adjusted operating profits for each division: Investment Management and Banking up 11%, Tax and Business Services up 10%

“We are delighted to have had a strong first half, putting us in a healthy position for the full 2014/15 year,” commented Andrew McKenna, head of Smith & Williamson’s Manchester office.

“We are in a unique position for a firm of our size, with the skills to manage the financial affairs of private clients and their business interests across investment management, tax and the full range of accountancy services,” he added.

“The success of the firm is based on the strength of our client relationships and the quality of our people. As ever, we are indebted to our clients and professional contacts for their continued support and to the vital contribution made to our success by all our colleagues across the business,” continued Andrew.

He explained: “While as a firm we are cautious about the short-term outlook for the UK economy due to persistently challenging economic conditions in Europe, we believe that changes in the financial services environment help to create opportunities for us. For example, the internationalisation of clients coupled with the importance of the UK and London as a global centre, developments in pensions and the impact of RDR on the wealth management sector – all point to change and hence opportunities.”

“To enhance the delivery of our services to clients, we are increasing our investment in infrastructure to ensure that systems, processes and controls are maintained and strengthened. Similarly, we are investing additional resources in marketing and business development,” commented Andrew.

In relation to Investment Management and Banking, he added:

“Organic growth in funds under management and advice continued to rise ahead of the FTSE Index, increasing to £15.3 billion; this represents a rise of 4%, compared with a 2% upturn in the FTSE WMA Stock Market Balanced Index over the year. Operating profits for the Investment Management and Banking division grew by 11% against the equivalent prior year results.”

On Tax and Business Services, he stated:

“This division is now experiencing better market conditions and while certain weaker pockets remain, we are pleased to report operating profits up by 10%, compared with the equivalent period in the prior year. Our Fund Administration service produced particularly good results and by the end of October 2014 it acted for approximately 130 funds, representing over £4.4 billion of assets.”

*for the first half year to 31st October

This was posted in Bdaily's Members' News section by Smith & Williamson .