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Consolidator grows platform assets 26% on back of acquisitions

Succession says there are “compelling reasons” for acquired firms to recommend clients place investments on the Succession platform.

Sprouting-Money-Growth-Emerging-Currency-700.jpgConsolidator Succession has argued that acquired advisers should put assets on its own platform, as its in-house solution grew its funds under management by 26 per cent last year.

£2.9bn now sits on Succession’s platform, according to its 2016 results, while profit before tax in the platform business, Succession Advisory Services, was £2.3m, a 44 per cent increase on 2015.

The results show turnover from the investment platform business and associated membership fees was £9.9m, up from £7.7m in 2015.

The results statement, filed by Succession Holdings, highlighted the role the platform will play in the future of Succession’s vertically integrated business model.

The statement adds: “The platform has been developed and is maintained in such a way that its features and benefits are aligned with the group’s wealth management proposition and, as such, there are compelling reasons for acquired firms – while acting in accordance with the ‘client best interests’ requirement – to recommend their clients place their investments on the Succession platform.”

Succession says it expects platform operating profits to increase as member numbers and platform assets grow.

Succession’s platform is a white-labelled offering from IFDL, the parent company of Ascentric.

Turnover in Succession’s advisory business increased by 58 per cent from £16.7m in 2015 to £26.4m in 2016. Operating profit before amortisation charges and parent company running costs was £1.5m, an increase from £1m in 2015.

During 2016, the number of financial planners at Succession increased from 82 to 112. As at the end of the first half of 2017 it now has 143 advisers working for it.

Succession acquired 14 firms in 2016 for a combined cost of £16.7m.

At group level, operating profit before goodwill and intangible asset amortisation was £2.3m, up from £1.3m in 2015. Group turnover was £36.3m, which was a 49 per cent increase on the 2015 result of £24.5m.

The latest updates

Succession today also provided an update on its performance in the first half of 2017.

It says funds under management have increased to £5.5bn, which is a compound annual growth of 34 per cent since its advisory business launched in January 2014.

It has acquired nine firms so far in 2017.

Succession Holdings executive chairman Ray Pierce says: “Succession has achieved outstanding H1 2017 performance following its excellent financial results in 2016. With the support of our committed shareholders, we continue to execute our long-term strategy of creating the UK’s largest privately-owned wealth management business.”

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