Wealth manager and Financial Planner Kingswood Holdings has reported a hit to new business from the Coronavirus pandemic but says it is beginning to recover.

In its half year results the company, which acquired Surrey-based Chartered Financial Planner Regency Investments last week, said the pandemic had hurt new business targets.

Remote working had made it more difficult and slower to process new clients in particular, the firm said.

Despite the challenges, the acquisitive group say it remains well financed and plans further growth and acquisitions.

Patrick Goulding, group CFO , said the pandemic had meant it was harder to “engage directly” with clients and this had hit new business activity and sales.

Kingswood staff switched during the lockdown to remote working but this had meant processing new business was slower. Staff have now returned to offices.

He said: "The first half of 2020 was an unusual period. We came into the year on the back of the considerable investment made in people, process and technology since 2018 and strongly positioned to avail of the opportunities ahead.

“It is fair to say we are slightly disappointed with the results achieved, with Covid-19 impacting delivery of our revenue targets.  Whilst in the current environment it is difficult to project expected outcome for the full financial year, Kingswood has completed 3 acquisitions this year which will have a positive impact on FY2020 revenue and EBITDA.”  

He added: “Market volatility in February through April did impact client asset values and recurring fee streams in those months, but these have since recovered. The biggest frustration was an inability to engage directly with clients thus impacting new business activity and sales.

“The industry also suffered from a general slowdown in the ability to get things done, with teams working remotely and what were previously simple tasks requiring much greater co-ordination to complete. The Kingswood team are now back in all offices and returning to some form of normality."

Total revenue for the period was £ 8.25 million, up 96% increase on the previous year mainly due to recent acquisitions. Some 84% of the group's revenue is from recurring fees.

Operating EBITDA for the period to 30 June was £ 0.14m, an increase of £0.48 million over the six months to 30 June 2019.

Net equity at 30 June was £39.93 million and the company, funded by private equity firm Pollen Street Capital, has no debt.

Buzz West, Kingswood Group chairman said: "It has been a challenging and disruptive year so far with some uncertainty still ahead.  I feel thankful the Kingswood family have managed well through these challenges and are healthy, safe and adjusting to a new normal.”

The company has acquired numerous financial adviser and Financial Planning firms over the past few years and, while not part of the latest figures, in late June the firm acquired Sterling Trust, an IFA with headquarters in Hull and 22 financial advisers advising/managing £1.2 billion AUA/AUM and servicing over 5,000 clients.

The company says “an extensive pipeline of potential UK M&A opportunities is under evaluation” and a further three transactions are currently being considered including “opportunities” in key preferred markets across the Midlands, Scotland and the South West.