Wealth management firm confident of hitting £3bn AUM soon

Manchester-based international wealth management firm Artorius Wealth, has seen assets under management (AUM) increase in the year to April 30, 2023, but reported an adjusted EBITDA loss, following a series of strategic investments.

The firm recorded a £280m uplift in AUM, to £1.780bn for the reporting period, when new clients and assets have been hard to come by across the industry.

It said by remaining focused on a UK regional strategy, the firm has grown AUM by £1bn organically over the past three years, while increasing recurring revenue from £4.9m full year April 2021 to £8m for full year April 2023.

The directors said they are pleased to report a year of strategic progress with continual progression on turnover and development of the client offering, while building out scale to manage £2-3bn of AUM within the short-medium term.

Adjusted EBITDA has been carefully managed as the business continues to invest in client experience, systems and scale to service large families with complex needs across the UK. The group reported an adjusted EBITDA loss of £500,000, comared with a £300,000 EBITDA profit in the prior year, following as series of strategic investments.

Recurring revenue increased 20% or £1.4m from £6.6m to £8m, reflecting the continued growth in AUM due to strong demand for the personalised service which puts planning at the core of everything the firm does for all clients.

Transactional revenue fell from £1m to £100,000, which reflects the business decision to pivot away from certain non-core revenue lines, as well as a tougher transactional environment for credit and private market business experienced since autumn 2022.

The directors said they remain pleased with the quality of the income and the client relationships with individuals and families seeking long term, independent partners in providing wealth planning, family governance and oversight, and investment advice.

AUM increased organically by £280m to £1.780bn as at April 30, 2023, mainly from client inflows and investment performance within its discretionary, advisory and family office offering, as well as superior investment returns relative to the peer group as measured by Asset Risk Consultants.

Costs were £8.6m, an increase of 17% or £1.3m year-on-year reflecting the full year investment in the family office proposition and IT platforms, plus a number of strategic hires to support the business to meet the next phase of growth. Reported full time employees had increased by nine to 66 by the financial year end.

CEO, Paddy Lewis, said: “Exceptional client experience, which is our number one focus, is proving to be an attractive attribute for recruiting both clients and staff. Our award winning business model has received significant investment over the last couple of years, and we will continue to invest to ensure we can remain laser focused on the quality of our service.”

Ian Bennett, group finance director, said: “The business continues to see strong demand for high quality wealth planning and advice from families with complex needs.

A £1bn AUM increase over the last three years for our UK business reflects the hard work in building a high quality proposition that resonates with clients looking for a strong client-focused wealth management partner.

“The business is now more robust with the ability to confidently scale to £3bn and beyond in the short-medium term with a platform that can leverage its operational gearing.”