INSIDE THE DEAL
Tilney Smith & Williamson breaks records following 2020 merger
Tilney Smith & Williamson recorded an increase in assets under management (AuM) in Q1 2021 to hit £51.6bn ($72.9bn) following a record year for new business, operating income and adjusted EBITDA in 2020. Patrick Brusnahan writes
The merger between Tilney and Smith & Williamson completed on 1 September 2020. This led to strong results in the year.
New business inflows totalled £3.3bn over the year, compared to £2.8bn in 2019. AuM also increased by year-end, totalling £51.2bn.
In addition, operating income increased by 47.5% year-on-year to hit £305.8m and EBITDA grew by 34.8% to reach £115.4m over the same time period.
Tilney Smith & Williamson for Q1 2021
In the three months to 31 March 2021, new business totalled £1.7bn, up for £1.5bn in Q1 2020.
Net inflows were $489m, a huge rise year-on-year from £109m.
Furthermore, total AuM increased to £51.6bn, excluding £350m of assets relating to the snapping up of HFS Melbourne. This will be added in Q2 2021.
Chris Woodhouse, Chief Executive, commented: “Despite the challenging backdrop of the COVID-19 pandemic for both clients and colleagues, 2020 was a landmark year for the business with completion of the merger of Tilney and Smith & Williamson on 1 September and continued strong organic growth. Our teams adapted incredibly well to the move to remote working and have demonstrated both great personal resilience and a relentless focus on supporting our clients throughout a period of uncertainty.
“The merger has created a business with an unrivalled range of expertise spanning both wealth management and professional services. At a time when the pandemic has caused so much disruption and uncertainty for both individuals and businesses, we are uniquely well-equipped to help clients with both the management of their personal wealth and business interests. The breadth of our services means we can support clients with a wide range of needs including raising capital or restructuring a business, tax advice, putting in place a personal financial plan and managing their investment portfolios.
“Our financial results for 2020, which saw adjusted EBITDA increase to £115.4 million and operating income rise to £305.8 million, reflected just four-months of Smith & Williamson as part of the Group. The full-year benefit of the merger in terms of operating income contribution and cost synergies will be reflected in 2021. On a pro forma basis, had the two business been merged since the start of 2020, rather than since September, we would have generated £505.6 million in operating income and £165.2 million in adjusted EBITDA.”
The merger was completed in September 2020. At the time, Tilney Smith & Williamson group CEO Chris Woodhouse said that the two companies are “highly complementary to one another”.
Woodhouse stated: “Together they bring an incredible pool of talented professionals with a strong ethos of delivering exceptional service to their clients. This is a great foundation for the future.”
In terms of revenues, the merged group is said to be the third-largest wealth manager in the UK.
It is said to be the UK’s fourth largest wealth management firm by AuM.
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