Financial Planner and wealth manager Kingswood Group, which confirmed it was potentially up for sale earlier this year, has reported a 10% rise in group operating profit to £5m for the first half of 2023.

UK revenue was boosted by organic growth and the acquisition of a number of financial adviser firms, including IFA firm Barry Fleming & Partners. Two further transactions are at an advanced stage, the firm said.

UK & Ireland revenue increased by 41% compared to the same period last year, of which 86% is recurring. UK & I Operating Profit was £7.7m and in line with expectations, the company said. 

Group operating profit was up by 10% to £5m but overall group revenue fell, with revenue at the US operation hit by a downturn in capital markets business.

Total UK and USA group revenue was down 22% (£17.7m) to £62.7m (H1 2022: £80.4m) with Kingswood US seeing a 38% slide in revenue to £39.5m.

UK & Ireland revenue was up 33%, helped by a 30% rise in wealth planning revenue to £16.7m. The group added an additional 16 UK financial advisers in the period to push the total to 116.

Group Assets under Management and Advice (AuM/A) at June were £12bn, up by £1.5bn compared to December 2022, boosted by the acquisitions of Barry Fleming & Partners (BFP) and Moloney Investments Ltd (MMPI) and in the US by the on-boarding of an 9 more registered representatives.

The company has made more than 15 acquisitions since the start of 2021, adding over £3.2bn of assets under management and advice and £11.8m of additional revenue in 2022.

While the UK interim revenue and profit figures showed improvement, the group, which operates in the UK and US, says it continues to face economic headwinds and challenging conditions.

David Lawrence, Kingswood Chief CEO, said: “Despite continued economic and market uncertainties, the group has delivered strong growth year over year, and we continue to build the business into a leading participant in the sector.

"Our business fundamentals remain strong, with positive net asset growth, high levels of recurring revenue and very low adviser, and consequently client, attrition.

“In the US, whilst market conditions have impacted performance, the fundamentals across both the investment banking and alternatives divisions give us confidence that as markets recover an accelerated growth trajectory will re-appear.”

Kingswood Go, a new UK-focused digital finance app and portal, has so far attracted 3,525 clients. The company says the app enables Kingswood to serve smaller clients cost-effectively.

Financial Planning Today has asked for an update on the sale process.