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Edward Jones deal provides £13m profit for Towry

Towry Law made £12.9m profit on its acquisition of Edward Jones, which it paid just £1 for in October 2009.

According to Towry Law’s annual report for 2009, Edward Jones brought on board £24.8m but Towry Law spent £11.9m restructuring Edward Jones, leaving a profit of £12.9m.

Towry saw underlying earnings before interest, taxes, depreciation and amortisation of £10.3m in 2009 and made a pre-tax profit of £17.1m, including the £12.9m from Edward Jones.

This compares with EBITDA of £5.1m in 2008 and a pre-tax loss of £10.7m.

In January, Towry Law received a £30m cash injection from US investment firm Asset Management Finance in order to fund further expansion in the IFA market.

Towry has transferred 100 per cent of the share capital in Towry Law to TL JerseyCo Holdco Limited, based in Jersey.

Towry Law says TL JerseyCo Holdco Limited is now the intermediate parent of the company.

A Towry Law spokesman says: “The change to the capital structure, as clearly outlined in the report and accounts, was simply a restructuring of the holding company structure above Towry Law Holdings. This was primarily undertaken to facilitate the investment by AMF in the company.

“As a result of this investment, Towry Law’s overall capital strength has seen further improvement.”

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