Smith & Williamson delivers double digit rises in profits and income in first half

  • Written By: Mark Gee
  • Published: Mon, 30 Jan 2017 16:33 GMT

Firm welcomes strong growth as strategic investment programme continues

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30 January 2017 - Smith & Williamson, the accountancy, investment management and tax group, delivered double digit rises in the group’s operating income and adjusted operating profit during the six months to 31 October 2016, underpinned by significant growth in its investment management and banking division as well as its tax and business services division.

  • Group operating income grew to £117.5m, up 10% compared to the equivalent period in the prior year (£106.5m)
  • Adjusted operating profit grew to £17.7m, a 22% rise compared to the equivalent period in the prior year (£14.5m)
  • Double digit growth in adjusted operating profits for each division:
    • investment management and banking up 21%
    • tax and business services increased to £2.4m (£1.0m in 2015)
  • £17.8bn funds under management and advice, growth of 11% (30 April 2016: £16.0bn)
  • Adjusted basic earnings per share of 24.2 pence, a 19% rise compared to the equivalent period in the prior year (20.3 pence).

“We are delighted that both sides of our business delivered so strongly in the first half of the year, despite the uncertainty around the UK referendum, positioning us well for a healthy conclusion to the financial year,” said Kevin Stopps, co-chief executive of Smith & Williamson and managing partner of tax and business services.

“While volatile, we saw higher stock market levels than the equivalent period in the prior year,” said David Cobb, co-chief executive of Smith & Williamson and head of investment management and banking. “We expect further stock market fluidity over the coming months due to likely uncertainty arising from elections in Europe, a new US President and the much anticipated triggering of Article 50 throughout which the firm will continue to guide clients’ business and wealth planning activity.”

“From these results we can see that investments made in recent years are bearing fruit,” added David Cobb. “We have recently broadened the depth and scope of our client offering by launching an investment management business from our Jersey office as well as making a number of strategic senior hires.”

Kevin Stopps continued, “Looking ahead, investing in our people, platform and resources, including strategic acquisitions, for the long term benefit of our clients, remains a priority. We are particularly excited about opportunities to support Britain’s scale-up businesses, our active partnership with the ScaleUp Institute and our family office initiative.”

By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. This briefing does not constitute advice nor a recommendation relating to the acquisition or disposal of investments. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.

Notes to editors
Smith & Williamson is a leading financial and professional services firm providing a comprehensive range of investment management, tax, financial advisory and accountancy services to private clients and their business interests. The firm’s c1,800 people operate from a network of 11 offices: London, Belfast, Birmingham, Bristol, Dublin (City and Sandyford), Glasgow, Guildford, Jersey, Salisbury and Southampton. Smith & Williamson is part of The Tilney Smith & Williamson Group.

Smith & Williamson Holdings Limited

Smith & Williamson LLP

Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. A member of Nexia International.

Smith & Williamson Investment Management LLP

Authorised and regulated by the Financial Conduct Authority.

Smith & Williamson Investment Services Limited

Authorised and regulated by the Financial Conduct Authority.

Smith & Williamson Fund Administration Limited

Authorised and regulated by the Financial Conduct Authority.

The Financial Conduct Authority do not regulate all of the services referred to above.

The word partner is used to refer to a member of Smith & Williamson LLP or Smith & Williamson Investment Management LLP.

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