Tilney Bestinvest posts £17.6m* profits in 2015 ahead of transformational acquisitions

Leading UK investment and financial planning group Tilney Bestinvest is pleased to announce that the Group generated a profit of £17.6 million* for the 12-months to 31 December 2015. This represented the first full year of trading since the merger of Tilney and Bestinvest in August 2014.

Despite a weaker year for equity markets, which saw the average level of the FTSE 100 Index some 1.6% lower in 2015 than in the previous year, Tilney Bestinvest saw its AUM rise 4.5% to £9.4 billion (31 December 2014: £9 billion). The Group generated revenues of £69.0 million compared to pro forma full-year revenues of £67.6 million in 2014 from the Tilney and Bestinvest businesses. This resilient performance was underpinned by a combination of £630 million of net new assets, representing 7.2% growth on opening assets, as well as strong relative investment performance across managed portfolios compared to peers (see notes to editors). Some 62% of Tilney Bestinvest’s assets are managed through a combination of bespoke discretionary accounts, a centralised managed portfolio service and its Multi-Asset Portfolio OEIC range.

The year was also one of significant investment in the long-term growth business in the form of hiring, marketing and systems and the creation of a new joint venture with Saga plc which launched at the end of the year. Tilney Bestinvest expanded its adviser headcount by 20% during the year through both recruitment of new financial planners across the UK and a transaction with Webb Holton in the Midlands. Overall staff costs increased 17%, reflecting the expansion programme. The business expects these investments to accelerate organic growth in 2016 and beyond.

Peter Hall, Chief Executive, commented: “In 2015 we made excellent progress towards achieving our strategic vision of becoming the UK’s leading provider of financial planning and investment services. Our investment performance has continued to be very good, organic growth has been strong and we have been investing for the future which will enable us to further enhance the service we provide to clients and accelerate future growth.”

“Our performance in 2015 is a great platform to build on in 2016 with the recently completed acquisitions of Ingenious Asset Management and of the Towry group, which is subject to FCA approval and expected to complete in the second half of the year. Both Tilney Bestinvest and Towry have made strong progress in recent years on a standalone basis but together the combination will be transformational. Together, we will create a market leading UK firm with 240 financial planners and 120 investment managers operating from over 30 locations across the UK, as well as a state-of-the-art online investment platform for self-directed investors. The combined business will support clients with over £20 billion of assets from across the wealth spectrum, with a range of services to meet the needs of clients whether they need expert financial planning, would like us to manage or advise them on their investments or prefer to make their own decisions.”

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*As measured by Earnings before interest, taxation, depreciation & amortisation (EBITDA). The Board regards EBITDA, which excludes non-cash accounting charges and exceptional items, as the most appropriate measure of underlying financial performance.

Notes to Editors

Appendix A – Asset Breakdown at 31 December 2015

Note: Excludes £1.8 bn assets managed by Ingenious Asset Management. The acquisition of IAM completed on 29 April 2016

Appendix B – Competitive Investment Performance (Multi Asset Portfolios)

Source: Lipper. Performance of Tilney Bestinvest’s Multi-Asset Portfolio funds with five year track records versus their Asset Risk Consultants benchmarks.

Press contacts:

Jason Hollands
0207 189 9919 / 07768 661382
jason.hollands@tilneybestinvest.co.uk

Gillian Kyle
0203 818 6846 / 07989 650 604
gillian.kyle@tilneybestinvest.co.uk

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