James Stevenson: “Succession has shown great resilience during one of the most challenging periods on record for financial markets.”
Underlying profits were up 40% to £10.3m at Succession Wealth in 2020 with growth in assets under advice to £7.67bn despite the coronavirus pandemic.
Its unaudited financial results for the year ended 31 December 2020 said underlying profitability, as measured by EBITDA, grew by 40% to £10.3m. It stood at £7.4m in 2019.
Assets under advice grew from £7.47bn in 2019 to £7.67bn during the tumultuous year for financial markets and businesses. It said “taking a multi-asset approach has shielded clients from the worst of the volatility”.
The independent advice business added 552 new clients to its books which now total more than 17,000.
Total revenues were resilient year-on-year at £74.3m (2019: £74.1m), despite market volatility, it added. Recurring revenues, as a percentage, increased to 84%.
Succession said operating expenses fell by 7% to £31m (2019: £33.5m) as it “repositioned the business for growth and delivered synergies from prior year acquisitions”.
Its statutory unaudited operating loss also fell 47% to £3.6m from £6.9m in 2019.
Chief executive James Stevenson said: “Succession has shown great resilience during one of the most challenging periods on record for financial markets. We will continue to invest in organic growth opportunities while also looking at strategic acquisitions with the profile to enhance our scale and future growth potential.
“I would like to thank everyone at Succession for their resilience and dedication as we transitioned to a new way of working. It has been really heartening to see and experience the support people have shown each other. I would also like to thank our clients for their loyalty and support as we enter what we all hope will be a year of greater optimism and opportunity.”
Chief operating officer Wadham Downing added: “2020 represents a step up in our financial performance. The improvement reflects not only the quality of our client-centric business model but targeted investment and management action taken during 2019 to improve efficiencies.
“Operationally, we were also able to transition the company to fully remote working and continued supporting over 17,000 clients without disruption. Our financial planners stayed close to clients while as a business we prioritised the wellbeing of our 600 colleagues across the country.
“As we enter 2021, we are optimistic about the future for Succession. Our business model has proved itself in the toughest of conditions, we have the right strategy in place and we see strong opportunities for growth.”