By Iain Gilbert
Date: Monday 01 Oct 2018
LONDON (ShareCast) - (Sharecast News) - Wealth management outfit Kingswood has acquired Marchant McKechnie Independent Financial Advisers for a total maximum consideration of £4m.
Kingswood will make an initial cash payment of £1.6m with a deferred sum of up to £2.4m also payable in cash or, at the seller's request, shares in the AIM-listed group, subject to certain revenue metrics being achieved over the next two years.
In its last trading year, the East Yorkshire-based Marchant McKechnie generated an EBITDA of £855,000 and a profit after tax of £499,000.
Kingswood expects the acquisition to be immediately earnings enhancing to the group.
Following the acquisition of Marchant McKechnie, which serves around 700 clients and has about £200m of assets under advice (AUA), Kingswood will have over £200bn AuA and more than 4,000 active clients.
Marianne Ismail, Kingswood Wealth's chief executive, said: "Marchant McKechnie is a strong addition to the group as we look to build a new national brand in the UK wealth market. Marchant McKechnie shares our commitment to delivering high levels of customer service to clients over the long-term."
"The UK wealth market is excessively fragmented, and we believe that there is a substantial market opportunity to build a national brand for quality, independent wealth planning advice and investment management."
As of 1640 BST, Kingswood shares were up 1.54% to 16.50p.
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Currency | UK Pounds |
Share Price | 11.25p |
Change Today | 0.000p |
% Change | 0.00 % |
52 Week High | 22.00 |
52 Week Low | 9.50 |
Volume | 18 |
Shares Issued | 216.92m |
Market Cap | £24.40m |
Value |
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Price Trend |
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Growth |
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No dividends found |
Time | Volume / Share Price |
10:08 | 18 @ 10.60p |
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