October 24th 2023
Artorius’ growth story continues.
Artorius Wealth Limited reported another year of strong growth with a £280 million (mn) uplift in assets under management (AUM) to £1,780 mn for the year ended 30 April 2023, in a period when new clients and assets have been hard to come by across the industry. By remaining focused on a UK regional strategy, the firm has grown AUM by £1 billion (bn) organically over the last 3 years, whilst increasing recurring revenue from £4.9mn full year April 2021 to £8.0mn for full year April 2023.
The directors are pleased to report a year of strategic progress with continual progression on turnover and development of the client offering, whilst building out scale to manage £2-3bn of AUM within the short-medium term. Adjusted EBITDA has been carefully managed as the business continues to invest in client experience, systems and scale to service large families with complex needs across the UK. The group reported an adjusted EBITDA loss of £(0.5)m to a £0.3m EBITDA profit in the prior year following as series of strategic investments.
Recurring revenue increased 20% or £1.4mn from £6.6mn to £8.0mn, reflecting the continued growth in AUM due to strong demand for the personalised service which puts planning at the core of everything we do for all clients. Transactional revenue fell from £1.0mn to £0.1mn which reflects the business decision to pivot away from certain non-core revenue lines, as well as a tougher transactional environment for credit & private market business experienced since Autumn 2022. The directors remain pleased with the quality of the income and the client relationships with individuals and families seeking long-term, independent partners in providing wealth planning, family governance & oversight, and investment advice.
AUM* increased organically by £280mn to £1,780mn as at 30th April 2023 mainly from client inflows and investment performance within its discretionary, advisory & family office offering, as well as superior investment returns relative to the peer group as measured by Asset Risk Consultants.
Costs were £8.6mn, an increase of 17% or £1.3mn year-on-year reflecting the full year investment in our family office proposition and IT platforms, plus a number of strategic hires to support the business to meet the next phase of growth. Reported FTE had increased by 9 to 66 employees by the financial year end.
AUM* stands at £1.8bn as at 31st October 2023 with offices located in Manchester, Yorkshire & London.
"We are delighted with the momentum that we have seen over the last 3 years. Artorius’ ability to navigate through complex wealth planning issues, source the best in breed of investment solutions and services and meet client requirements across credit structuring and family office reporting. Exceptional client experience, which is our number one focus, is proving to be an attractive attribute for recruiting both clients and staff. Our award-winning business model has received significant investment over the last couple of years, and we will continue to invest to ensure we can remain laser focused on the quality of our service."
Paddy Lewis, CEO
"The business continues to see strong demand for high quality wealth planning and advice from families with complex needs. A £1bn AUM increase over the last 3 years for our UK business reflects the hard work in building a high-quality proposition that resonates with clients looking for a strong client focused wealth management partner. The business is now more robust with the ability to confidently scale to 3bn and beyond in the short-medium term with a platform that can leverage its operational gearing".
Ian Bennett, Group Finance Director
*Assets under management (AUM) (notional) represent all client assets that are managed, advised or influenced through discretionary, advisory and family trust mandates at the period end in GBP equivalent, and weighted at a revenue margin of 0.5% from the underlying recurring mandate fee charging structure. Organic growth & markets represents net new business and investment performance.