Finance firm sees revenues and earnings rise, but assets under management dip

Manchester-based international wealth management firm Artorius Wealth, has seen revenues and earnings rise, but experienced a reduction in assets under management (AUM).

Turnover rose by eight per cent to £8.7m in the year to April, 2024, and a return to EBITDA profitability of £250,000, compared with a £500,000 deficit in 2023, despite more challenging market conditions, which it said demonstrates the operational leverage of the group to convert revenue growth to bottom line profitability.

By remaining focused on a UK regional strategy, the firm has grown AUM by £1bn organically over the past four years, while increasing recurring revenue from £4.8m full year April 2021 to £8.6m for full year April 2024.

Artorius ended its 2024 financial year with an AUM of £1.75bn, down from £1.8bn the previous year, due to client outflows from deleveraging in response to rising interest rates offsetting superior investment returns relative to the peer group as measured by Asset Risk Consultants. 

The group said it remains well capitalised with net assets reported of £5.9m, of which £4.6m was held on deposit.

Recurring revenue increased eight per cent, or £0.6m, from £8m to £8.6m, reflecting the continued growth in average monthly AUM due to strong demand for the personalised service.

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.

Artorius, which was founded in 2015, said new business has been impacted with rising interest rates and increased volatility in world markets, although it is seeing a return to NNA growth as M&A activity improves and interest rates have peaked.

CEO Paddy Lewis said: “The momentum we have seen over the last three years has continued with a strong contribution from our differentiated offering for large complex family situations.

“The investment in our reporting platform and other areas of our infrastructure has significantly improved our ability to deliver an efficient service to our clients, which has resulted in a number of high quality referrals, who we have been busy onboarding this autumn.”

He added: “With our strong investment performance and continued focus on planning at the centre of everything we do, we are confident the business is well positioned to deliver strong profit growth in the next two years.”

Ian Bennett, Group Finance Director, said: “The business continues to see impressive recurring revenue and profit growth which reflects the strong demand for high quality wealth planning and advice for families with complex needs despite industry headwinds.

“We have a strong team which provides award winning client service and have the confidence to scale to £3bn+ AUM and beyond in the medium term.”

He added: “With a strong balance sheet and cash position relative to our peers, we are excited to see long term sustainable growth in the future.”