Evelyn Partners delivered record H1 financial performance with a 18.3% increase in adjusted EBITDA

Evelyn Partners is pleased to announce its interim financial results highlights (unaudited) for the six months ended 30 June 2024. During the period, the business generated £3.5 billion of gross inflows, with net flows remaining positive, which alongside positive markets and investment performance drove assets under management (AUM) to a record high of £62.2 billion. Strong growth in operating income combined with a disciplined approach to cost management resulted in a 18.3% increase in adjusted EBITDA to £103.9 million.

Financial Highlights

·         Record AUM of £62.2 billion, up 13.3% year-on-year and 5.2% since 31 December 2023.

·         Gross inflows of £3.5 billion (H1 2023: £3.8 billion), equivalent to an annualised growth rate of 11.8%.

·         Net flows remained positive at £0.5 billion (H1 2023: £1.8 billion), with elevated outflows reflecting the impact of higher interest rates on clients.

·         £2.6 billion increase in AUM (H1 2023: £0.1 billion), attributable to positive market movements and investment performance.

·         Group operating income increased 10.3% to £360.8 million (H1 2023: £327.2 million)

-             23.4% growth in Professional Services operating income reflecting continued strong organic growth alongside the contribution of acquisitions made last year.

-             5.2% growth in Financial Services operating income driven primarily by an increase in average AUM.

·         Adjusted EBITDA¹ increased 18.3% to £103.9 million (H1 2023: £87.8 million), with adjusted EBITDA margin² rising to 28.8% (H1 2023: 26.8%).

Paul Geddes, Group Chief Executive Officer, commented: “We have made a great start to the year supporting our clients in addressing their financial needs and delivering strong financial performance. Healthy top-line growth combined with a disciplined approach to managing our costs, resulted in a 18.3% increase in adjusted EBITDA, which is our key measure for underlying cash profits.

“In Professional Services, we continued to see strong organic growth in fee income and the benefit of the five acquisitions we completed last year coming through. We will build on this over the coming months, with the recently announced acquisition of the Manchester, Leeds and Newcastle offices of Haines Watts which has brought us 150 new colleagues. In our Financial Services business, positive market movements in the first half and resilient new business generation have delivered higher AUM and operating income. 

“Since the merger in 2020, Evelyn Partners has demonstrated the strength and resilience of its business model in challenging market conditions, including during the pandemic and subsequently in an environment of high inflation and interest rates. Despite this we have delivered net inflows of new assets every quarter since the merger. Our Professional Services business has shown consistently strong growth in operating income, offering a broad range of services to private clients and businesses.

“With inflation having settled back and the first interest rate cut made in the UK, there are good grounds to be positive on the medium-term outlook despite the turbulence seen in global equity markets in recent days. Evelyn Partners is well positioned to support clients navigate periods of market volatility and with potential changes to tax and pensions on the horizon we also expect to see strong demand for financial advice in the second half of the year.”