Towry has agreed a £70m refinancing deal to reduce its cost of capital and fund future acquisition deals.
The firm has announced the refinancing deal with GE Capital, HSBC and Royal Bank of Scotland, as Towry Holdings posts a pre-tax profit of £9.8m for 2013, up 4 per cent from £9.4m in 2012.
Revenue remained flat, falling slightly from £82.6m to £82.4m.
Assets under administration across the business increased 18 per cent from £4.9bn to £5.8bn, while operating expenses reduced slightly from £70.96m to £70.83m.
Towry states it incurred £2m in exceptional regulatory costs (£432,000 in 2012). It says they relate to addressing issues raised by the FCA. Towry also notes £424,000 in ’exceptional settlement costs’. Thsoe costs relate to settlements at cquired firms.
The account documents add that in 2013 the board conducted a review of the effectiveness of Towry group’s internal control system, including compliance controls.
It also notes a £2.1m “business transformation” cost mainly attributed to costs in upgrading its client management systems through a deal signed with Iress in February 2013.
Towry chief executive Rob Devey says: “This agreement brings us excellent new lending relationships and additional finance, which further strengthens Towry’s strategy of acquiring wealth management firms that we see as a strong fit with the existing business. Since the start of 2013, Towry has acquired six companies, and we continue to have secure financial backing to complete future deals.”
Among Towry’s acquisitions last year was the Bluefin advice business from Axa. Last week it confirmed the acquisition of Baker Tilly’s advice business, after the deal was tipped by Money Marketing.