Fairstone Group Achieve 22% Growth in Recurring Income

Fairstone Group, which incorporates one of the UK’s largest Chartered Financial Planning firms, has seen a more than 22% increase in recurring income according to its latest results.

Audited accounts just completed for 2019 show that recurring income has increased to £41.5m, up from £34.1m in 2018, representing 65% of advisory revenue.

Meanwhile total client numbers during this period have risen over 14% to 65,000, while funds under management have increased by 12.5% to £8.1bn. Total revenue for the 2019 financial year has also grown by 12%, to £64m, representing an increase of £6.9m, with adjusted EBITDA showing a profit of £6.3m, up £3.8m from the previous year.

This solid performance across the key metrics of the business is further bolstered by new half year figures for 2020, which show continued momentum. As at the end of June 2020, Fairstone had increased its client base to almost 69,000 and recurring income had also reached a new high, representing 75% of total advisory revenue.

Fairstone is a full-service wealth management house delivering integration-led growth to emerge as a new leader in the UK regulated landscape. With a head office in Newcastle and a significant presence in London, the group operate across 42 locations throughout the UK.

Commenting on the annual results, Fairstone CEO Lee Hartley explained that the focus for 2019 had been to continue to deliver “sustainable, responsible growth” and this had been supported by the group’s proprietary Downstream Buy Out (“DBO”) programme.

Mr Hartley added: “I am pleased to announce that the Group continues to make excellent progress against its core strategy and growth plan, with the trading and operational results in 2019 being significantly ahead of the previous year.

“In 2019 we delivered strong progress across all areas of the business. Revenue and adjusted EBITDA performance has been substantially ahead of the prior year in each channel and both our advisory and investment management businesses are operating profitably and with a complete absence of cross-subsidisation.

“A combination of organic growth and the success of our unique DBO programme, which reverses the traditional buy and build approach, is continuing to deliver exceptional results and to drive growth, with a series of deals with partner firms being completed at various stages within the financial year.

“Our considered approach, together with our proven business model and the significant financial backing that we have at our disposal, allows the management team and shareholders to look forward to 2020 and beyond in a positive manner.”

In addition to 10 completed acquisitions, nine firms joined the DBO programme in 2019 with a view to full acquisition within the next two years, and interest in the proposition remains very high.

You can download a copy of our annual accounts as well as our half year review here

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