Chartered Financial Planner group Fairstone has reported 22% growth in recurring income in 2019 with latest clients numbers rising to nearly 70,000.

The acquisitive firm, in its annual results for 2019, reported today that recurring income in the year rose to £41.5m (£34.1m in 2018), 65% of advisory revenue.

Total client numbers rose 14% in 2019 to 65,000 and have risen further to nearly 70,000 by June this year.

Funds under management in 2019 increased by 12.5% to £8.1bn.

Total revenue in the 2019 financial year increased by 12% to £64m and adjusted EBITDA showed a profit of £6.3m, up £3.8m from the previous year.

The company says half year figures for 2020 show continued momentum with recurring income at a new high of 75% of total advisory revenue.

There are no currently no furloughed staff although earlier in the year, out of 265 operational staff, eight were furloughed for a short period. These included receptionists, administrators,  an events executive and three mortgage advisers unable to do their jobs due to the lockdown. All received 100% of their salaries, the firm said. The majority returned to their full positions in July, with the last member of staff who had been furloughed returning in August.

Newcastle-headquartered Fairstone has 42 offices in the UK and acquired 10 adviser firms in 2019 with nine more firms joining its buy-out programme which usually results in full acquisition within two years.

Fairstone CEO Lee Hartley said: ”The group continues to make excellent progress against its core strategy and growth plan, with the trading and operational results in 2019 being significantly ahead of the previous year.

“In 2019 we delivered strong progress across all areas of the business. Revenue and adjusted EBITDA performance has been substantially ahead of the prior year in each channel and both our advisory and investment management businesses are operating profitably and with a complete absence of cross-subsidisation.

“A combination of organic growth and the success of our unique DBO (Downstream Buy Out) programme, which reverses the traditional buy and build approach, is continuing to deliver exceptional results and to drive growth, with a series of deals with partner firms being completed at various stages within the financial year.”

He said he and the management team were “positive” about the future.