Towry profits leap by almost half

Towry says it is still on the acquisition trail after announcing a 29 per cent increase in assets under administration, from £3.5bn to £4.5bn, for the first half of 2011.

The firm’s interim results, published this week, show a 47 per cent increase in profits to £9.4m from £6.4m.

The firm saw adviser numbers drop 8 per cent to 192 at June 30 from 208 at December 31, 2010. Following Towry’s acquisition of Edward Jones in 2009, the firm took on 128 EJ advisers in February 2010. It refuses to disclose how many remain with the firm.

Towry says it has signed a new £22m four-year revolving credit facility with RBS. The firm says the agreement is similar to previous debt facilities and does not signal an increased emphasis on acquisitions. However, a spokeswoman says: “We believe there will be opportunities to hire good advisers in the months ahead as a number of businesses put themselves up for sale.”

Chief executive Andrew Fisher says: ’The first half of 2011 has been a further period of growth for Towry and we look forward to the second half as we retain our ambition and conviction of becoming the leading firm of wealth advisers in the UK.”

Towry is claiming £5.8m in damages from seven former EJ advisers and Raymond James over alleged client solicitation. A verdict is expected in October.