Investment programme underpins positive momentum across firm’s key divisions
Smith & Williamson, the financial and professional services firm, delivered strong increases in the group’s operating income and adjusted operating profit during the year to 30 April 2017, underpinned by growth across the broad base of the business and accompanied by ongoing investments in people, client services and infrastructure.
Financial highlights for year to 30 April 2017
- group operating income grew to £244.6m, up 9.9% compared with the prior year (2016: £222.5m)
- adjusted operating profit up 12.8% to £40.6m (2016: £36.0m)
- £18.8bn funds under management and advice, growth of 17.5% (30 April 2016: £16.0bn)
- £9.2bn of funds under administration, growth of 39.4% (30 April 2016: £6.6bn)
- adjusted basic earnings per share of 60.2p, a 16.0% rise compared with the prior year (2016: 51.9p).
Investment management and banking
Rising stock markets in the year to 30 April 2017 helped drive the division’s adjusted operating profit growth of 21.2% to £32.0m (2016: £26.4m) in the year. Funds under management and advice grew by 17.5%, comparing favourably with the 15.2% increase in the MSCI WMA Stock Market Balanced Index and the 15.4% increase in the FTSE 100 Index in the year.
David Cobb, co-chief executive of Smith & Williamson and managing partner of investment management and banking said: “The outlook for the coming year is marked by a heightened sense of political and economic uncertainty. While this may impact stock market levels, we believe we are very well positioned to help clients navigate these uncertainties and take advantage of any opportunities that may arise.”
Tax and business services
Double digit growth in adjusted operating profit of 19.3% to £10.5m (2016: £8.8m) was driven by improvements across all business lines, with particular successes in the firms’ private client tax, restructuring and recovery, forensics and fund administration teams. Funds under administration rose 39.4% to £9.2bn in the current year (30 April 2016: £6.6bn), a near doubling in two years (30 April 2015: £5.0bn). Of this, £8.2bn (30 April 2016: £5.7bn) comprised third party funds.
“We are delighted by the momentum in the business, which has been building over the past few years as our significant and ongoing investment programme starts to bear fruit,” said Kevin Stopps, co-chief executive of Smith & Williamson and managing partner of tax and business services. “By continually improving our infrastructure and making key strategic hires to support the broadening of our services, we are well placed to further consolidate our position as a leading independent financial and professional advisor to private clients and their business interests.”
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.