Wealth manager European Wealth has reported a pre-tax loss of £1m in 2015, compared to a loss of £0.3m in 2014.
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The company attributed the loss to a cash outflow of £1.07m driven by lower than expected trading volumes and the cost related to making acquisitions and hires.
The company completed three acquisitions in the financial year. This includes the acquisition of Greensnow in July 2015 that added £70m of funds, financial planning clients of Bells Solicitors in September 2015 that added £43m, and XCAP Nominees in November 2015 that added £30m to its portfolio.
However, the group increased its recurring revenue by 63% during the period. Its funds under management too surged 20% to £1.2bn from £1bn a year ago.
Income from trading activities jumped 67% to £7.7m from £4.6m in the prior year. The company said that the growth reflects a full year of trading and organic growth, growth from acquisitions and growth from attracting additional revenue generating staff.
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By GlobalDataThe group’s net assets rose to £17.3m in 2015 from £16.6m in 2014.
European Wealth chairman John Morton said: "The group has continued to pursue its core strategy of taking advantage of the structural changes within the financial services industry both in the United Kingdom and internationally.
"These changes, which are primarily driven by changing regulation, are resulting in increased stress on overheads at a time when the industry is becoming more competitive and margins, particularly in the investment management industry, remain under pressure."
