acquisition strategy

Strong 2022 results for Foster Denovo show benefit of acquisition strategy following Crestline investment

Summary of 2022 activity and results:

  • £100 million investment by Crestline Investors secured
  • First tranche of acquisitions completed and practices of 17 self-employed advisers (Partners) acquired
  • £3.9 million growth in EBITDA takes total to £5.3 million
  • Group revenues of £27.1 million
  • Assets under management grow to £1.2 billion, a 9% increase on 2021 across the Dynamic Portfolios and Sequel Investments

Foster Denovo Group Limited, the parent company of national financial advisory business Foster Denovo Limited and investment management company Sequel Investments Limited, has posted its audited financial results for 2022 and they show strong growth across the whole Group.

The Group puts the near fourfold growth in EBITDA – reporting £5.3 million, an increase of £3.9 million over 2021 – down to the successful execution of the first part of its acquisition strategy. The Group deployed funds from the investment by Crestline to acquire the practices of 17 self-employed advisers (Partners). This strategy has been further boosted with the announcement of the acquisition of Wade Financial Services on 27 September 2023, helping to cement the Group’s foothold as a major national advice brand and allowing the Group to create a regional hub in the North East.

As well as growing EBITDA, the Group also grew revenue to £27.1 million, making 2022 the sixth consecutive year of continued growth. This was achieved despite the adverse equity and bond markets in the year.

As well as organic and growth through acquisitions, the firm continued to recruit advisers and enhance the client offering, attracting funds inflow into the Dynamic Portfolios with assets under management growing to £0.55 billion, an increase of 38% over the year.

Commenting on the results, Roger Brosch, CEO of Foster Denovo said: “2022 was a pivotal year for the Group. We completed our first external investment into the business and immediately put the funds to work resulting in spectacular growth in EBITDA. The acquisition strategy has continued in 2023 with the recent announcement of Wade Financial Services. Before the year is out, we will be announcing the next firm which will be joining the Foster Denovo Group. Our growth strategy is really starting to get into its stride, so watch this space.”

Philip Davies, CFO of Foster Denovo, added: “It was particularly pleasing to see Foster Denovo continue to go from strength to strength in the face of the challenging market conditions in 2022. I am delighted to see the strategy that Crestline invested in succeed in the first year.”

Read more on the publication below: Financial Planning Today