Assets Under Management (AUM) increased to £51.6 billion at end of Q1 2021, following on from a record year for New Business, Operating Income and Adjusted EBITDA in 2020

11 May 2021
 

Tilney Smith & Williamson is pleased to announce its financial results for the year ended 31 December 2020 as well as an update on AUM and business flows for the first quarter of 2021.

2020 Financial and Business Highlights[1]:

  • Completed the transformational merger of Tilney and Smith & Williamson on 1 September to create a leading integrated wealth management and professional services group
  • Strong organic growth achieved with record gross new business inflows of £3.3 billion (FY 2019: £2.8 billion) representing 12.5% of opening assets and a 6.7% increase in net inflows to £704.1 million (FY 2019: £660.0 million).
  • AUM increased to £51.2 billion at year end (FY 2019: £26.3 billion) including £22.3 billion acquired on 1 September through the merger with Smith & Williamson.
  • Operating income increased by 47.5% to £305.8 million (FY 2019: £207.3 million) inclusive of a four-month contribution from Smith & Williamson as part of the combined Group
  • Adjusted EBITDA[2] increased by 34.8% to £115.4 million (FY 2019: £85.6 million)
  • Implemented a major new technology solution that supports investment managers, trading and provides an in-house, scalable custody and settlement platform that will facilitate future growth
  • Invested in new talent including the strengthening of the Executive leadership team


Q1 2021 Update for the three-months to 31 March 2021:

  • Delivered gross new business inflows of £1.7 billion (Q1 2020: £1.5 billion*), representing 13.1% of opening assets under management on an annualised basis.
  • Net inflows were £489 million (Q1 2020: £109 million*), representing 3.8% of opening assets under management on an annualised basis.
  • Successfully disposed of a range of single asset class non-core pooled funds; this reduced AUM by £522 million
  • Total AUM increased to £51.6 billion at 31 March, excluding £350 million of assets relating to the acquisition of HFS Milbourne which will be added in the second quarter

* Pro forma comparison provided i.e. inclusive of both Tilney and Smith & Williamson flows

Chris Woodhouse, Chief Executive, commented:

“Despite the challenging backdrop of the COVID-19 pandemic for both clients and colleagues, 2020 was a landmark year for the business with completion of the merger of Tilney and Smith & Williamson on 1 September and continued strong organic growth. Our teams adapted incredibly well to the move to remote working and have demonstrated both great personal resilience and a relentless focus on supporting our clients throughout a period of uncertainty.

“The merger has created a business with an unrivalled range of expertise spanning both wealth management and professional services. At a time when the pandemic has caused so much disruption and uncertainty for both individuals and businesses, we are uniquely well-equipped to help clients with both the management of their personal wealth and business interests. The breadth of our services means we can support clients with a wide range of needs including raising capital or restructuring a business, tax advice, putting in place a personal financial plan and managing their investment portfolios.

“Our financial results for 2020, which saw adjusted EBITDA increase to £115.4 million and operating income rise to £305.8 million, reflected just four-months of Smith & Williamson as part of the Group. The full-year benefit of the merger in terms of operating income contribution and cost synergies will be reflected in 2021. On a pro forma basis, had the two business been merged since the start of 2020, rather than since September, we would have generated £505.6 million in operating income and £165.2 million in adjusted EBITDA.

“With an enhanced client offering and a deeper pool of expertise we began 2021 better positioned than ever to support our clients. We have made an encouraging start to the year with £1.7 billion of gross new business in the first quarter and further assets of £350 million to be added in Q2 from our recent acquisition of HFS Milbourne in Guildford. We have also continued to attract new talent in both professional services and financial services and the Board has been strengthened too with the appointment of Bill McNabb, former CEO and Chairman of Vanguard, as a Non-Executive Director. We have made good progress with integration projects and our digital development agenda is gathering pace, which will both improve client experience and support the scalability of the business.”

 

[1] Full-year 2019 figures and opening assets represent Tilney Group Limited unless stated otherwise. Tilney Group Limited changed its name to Tilney Smith & Williamson Limited following completion of the Smith & Williamson transaction on 1 September 2020.

[2] Adjusted Earnings Before Interest, Tax, Depreciation and Amortisation is defined as operating profit of £11.2 million (2019: £17.7 million), adding back merger related exceptional costs of £38.2 million (2019: £10.0 million), other non-recurring costs of £1.3 million (2019: £5.7 million) and amortisation and depreciation totalling £64.7 million (2019: £52.2 million).

About Tilney Smith & Williamson

Tilney Smith & Williamson is the UK’s leading integrated wealth management and professional services group, created by the merger of Tilney and Smith & Williamson on 1 September 2020. With £54.8 billion of assets under management (as at 30 June 2021), it ranks as the third largest UK wealth manager measured by revenues and the eighth largest professional services firm ranked by fee income. The Group currently operates through three principal brands: Tilney, Smith & Williamson and online investment service Bestinvest. It has a network of 28 offices across the UK, as well as the Republic of Ireland and the Channel Islands. Through its operating companies, the Group offers an extensive range of financial and professional services to individuals, family trusts, professional intermediaries, charities and businesses. It is uniquely well-placed to support clients with both their personal financial affairs and their business interests. Tilney Smith & Williamson’s personal wealth management services include financial planning, investment management and advice, online execution-only investing and personal tax advice. For businesses, its wide range of services includes assurance and accounting, business tax advice, employee benefits, forensic advice, fund administration, recovery and restructuring and transaction services.