Smith & Williamson revenues up 10% ahead of Tilney merger

Top 10 fund management and accounting group Smith & Williamson has reported a 10.3% hike in operating income for the first six months of the 2019/20 financial year, which also saw the firm announce a strategic merger with Tilney Group to create a £1.8bn business.

The interim result show group operating income of £148.7m, up from £134.8m in the same period of the previous year. Adjusted operating profit was £27.5m, an increase of 26.1% over the comparative period in the prior year when it totalled £21.8m.

Funds under management and advice increased by 3.7% to £22.2bn. 

Smith & Williamson announced a proposed merger with Tilney Group in September which is expected to complete in the first quarter of 2020. The merger will create the UK’s leading wealth management and professional services firm for private clients and their business interests.

The merged business, which upon completion will be named Tilney Smith & Williamson, will have over £45bn of assets under management and will retain the accounting division, handling tax, audit, accounting and business advisory services.

Smith & Williamson shareholders will receive £625m, through a combination of cash and shares in the enlarged group, while Smith & Williamson management shareholders will be rolling the majority of their investment into the equity of the enlarged group.

The transaction values the combined business at approximately £1.8bn. The combined business will have revenues of an estimated £500m and earnings before interest, tax, depreciation and amortisation (EBITDA) of £150m.

The merged operation will have an expanded office network across 36 locations in the UK, Ireland and the Channel Islands. It will have approximately 280 investment managers, 260 financial planners and a professional services business with 150 partners and directors.

David Cobb and Kevin Stopps, co-chief executives of Smith & Williamson, said: ‘The first half of the year saw further progress, both in terms of our performance and, strategically, with our proposed merger with Tilney.

‘We are looking forward to completion of the merger and starting to unlock the growth opportunities available to the enlarged group. 

‘We would like to take this opportunity to express our thanks to our colleagues for their professionalism, loyalty and hard work through a particularly intense period for the company and to our clients for their continuing support.’

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