Wealth management firm set to break £1bn AUM as organic growth continues

Artorius Wealth today reported increased revenues, assets under management (AUM) and reduced losses for the financial year to April 30, 2019.

An adjusted EBITDA loss of £500,000 compared with a £700,000 loss the prior year.

Reported revenue of £4.5m compares with £3.5m in the previous year period.

And AUM increased by £200m to £883m as at April 30, mainly from client inflows within the firm’s discretionary, advisory and family office offering, as well as superior investment return relative to the peer group as measured by Asset Risk Consultants.

The directors of Artorius, the Manchester-based wealth manager with offices in London and Zurich, said they are pleased with continual progression on turnover and development of the client offering, while maintaining control over administrative expenses.

Artorius was established in 2015 by a group of 30 investors, principally entrepreneurs and financiers. No investor has more than 10% of the equity.

Adjusted EBITDA has improved significantly over the three-year period, while the business continues to invest in client experience, systems and scale.

The group, during financial year 2019, was operational cashflow break-even, and chose to invest further in strategic hires, client experience and operating platforms to help build a high-quality, long-term recurring revenue-based business.

Net revenues were £4.5m, a 29% or £1m increase, reflecting the continued growth in assets under management (AUM) reflecting strong demand for the firm’s personalised services to its clients.

Recurring revenue now accounts for 88% of total revenue.

The directors said 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.

The group is pleased to see organic growth of around £200m per annum for a third successive year.

Administrative costs were £5m, an increase of £900,000 year-on-year, reflecting the relocation of the London office, investment in the family office proposition and IT platforms, plus a number of strategic hires to support the business to meet the group five-year plan.

Reported full-time employment had increased by 10 to 37 employees by the financial year end, with a further eight staff hired subsequently.

During the year the group raised £4.2m of equity for investment into the business to accelerate growth in line with its five-year organic plan.

The capital has been targeted for selective hiring of individuals and teams, as well as further development of the client experience, systems and increased regulatory capital.

The group has also converted £2.3m of loan notes into equity in the next financial year.

This will further support investment within the five-year business plan as well as reducing the interest burden of the group.

Group finance director Ian Bennett said: “Artorius continues to build on its strategy of developing a high-quality, long term wealth management business.

“We are continuing to see strong organic AUM growth by attracting clients and talented staff that like our personalised service that addresses their individual unique circumstances.

“Whilst the industry continues to commoditise products and reduce service levels, we are proud to show that there is another way.”

Chief operating officer Mike Toole said: “We are delighted with the momentum that we have seen over the last three years.

“Artorius’s ability to navigate through complex wealth-planning issues, source the best in breed of investment products and services, and offer an exceptional client experience is proving to be an attractive proposition to recruiting both clients and staff.”