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Towry agrees £70m financing deal to fund future acquisitions

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 holding company Towry Holdings posted a pre-tax profit of £9.8m for 2013, up 4 per cent from £9.4m in 2012. 

Its annual results, published last week, show revenue remained flat, going from £82.6m to £82.4m.

Assets under administration increased 18 per cent from £4.9bn to £5.8bn, while operating expenses reduced slightly from £71m to £70.8m.

Towry incurred £2m in exceptional regulatory costs compared with £432,000 in 2012. It says they relate to issues raised by the FCA, but declined to specify what these are.

Towry also notes £424,000 in “exceptional settlement costs”, which it says relate to firms acquired “more than five years ago”. 

The accounts say the board conducted a review of internal controls, including compliance controls, last year, which is unconnected to the £2m regulatory costs.  

The company also spent £2.1m on “business transformation”, mainly to upgrade client management systems through a deal signed with Iress in February 2013.

Towry chief executive Rob Devey says: “Since the start of 2013, Towry has acquired six companies, and we continue to have secure financial backing to complete future deals.”

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