Wealth management firm boosts revenues and slashes loss

Wealth management specialist Artorius has raised £4.2m of additional equity to support continued investment in the company, which has offices in Manchester, London and Zurich.

The firm managed to raise the funding following its latest annual results for the year to April 30, 2018, which showed a narrowing of its adjusted EBITDA loss of £1.87m for 2017, to £651,766 last year.

Its first published figures revealed an adjusted EBITDA loss of £3.66m for the year to April 30, 2016.

Revenues of £3.5m to April, 2018, compared with £2.1m the previous year. Revenues from the firm’s first year’s figures were £915,742.

Recurring revenue now accounts for 85% of total revenue, which compares with 58% for the prior year.

Administrative costs were £4.1m, an increase of 4% year-on-year, reflecting strategic investment in hiring and IT platforms to grow the business in line with its five-year plan.

The company’s headcount has grown by three to 27 following additional hiring of client-facing staff.

The group said it is currently operational cashflow break-even, but will continue to invest in strategic hires, client experience and operating platforms to build a high-quality long-term recurring revenue-based business.

Assets under management (AUM) increased by £183m to £683m as at April 30, mainly from client inflows within its Discretionary, Advisory and Family Office offering, as well as a top decile investment return relative to the peer group as measured by Asset Risk Consultants.

By October 31, 2018, assets under management had grown to £810m.

Artorius said the new fund-raising has been targeted for selective hiring of individuals and teams, as well as further development of its client experience and systems.

Additionally, the group has received irrevocable agreement from loan note holders to convert £2.1m of remaining loan notes into equity on expiration of a three-year loan note term, that will further support investment over the five-year business plan.

Directors said they are pleased with continual progression on turnover and quality of the recurring income stream, while maintaining control over administrative expenses.

They also added they remain pleased with the quality of the income, and the quality of the client relationships with individuals and families seeking long-term partners in providing wealth planning, family governance and oversight, and investment advice.

Ian Bennett, group finance director, said: “Artorius continues to see strong organic AUM growth by attracting clients that like our long-term approach to delivering solutions unique to their individual circumstances.

“We are reversing the industry trend of providing commoditised products, by developing a personalised proposition built on service and understanding which is resonating with our clients.”