Evelyn Partners Group Limited third quarter trading update for the three months ended 30 September 2024

Evelyn Partners is pleased to announce a trading update for the three months ended 30 September 2024.

Highlights

• Assets under Management & Advice (AuMA) increased to a record high of £62.7 billion at 30 September rising 12.8% year-on-year (Q3 2023: £55.6 billion).
  
• Gross inflows of new assets in Q3 of £1.9 billion were higher than in each of the previous two quarters and consistent with the same period last year (Q3 2023: £1.9 billion). Year-to-date gross inflows of £5.4 billion are equivalent to an annualised growth rate of 12.2% based on opening assets.
  
  
• Gross outflows of assets of £1.7 billion in Q3 included £353 million relating to the discontinuation of a legacy execution-only service, the effect of which will be one-off in nature in this quarter.
• Inclusive of the above exceptional outflow, net new asset inflows in Q3 remained positive at £0.2 billion in Q3 (Q3 2023: £0.6 billion) continuing a trend of consistent net inflows every quarter since the merger of Tilney and Smith & Williamson in 2020.
  
  
• Group operating income in Q3 of £181.8 million was 11.1% ahead of the same period last year (Q3 2023: £163.6 million), with increases across each of the three operating segments (Financial Services, Professional Services and Fund Solutions).
  
  
• Group operating income for the first nine months of 2024 of £542.6 million is 10.6% ahead of the same period last year.
  
  
• As part of our Professional Services acquisition programme, we completed the acquisition of Haines Watts’ Northern offices on 2 August. 
   

Paul Geddes, Group Chief Executive, commented:

“We’re pleased with this positive third quarter performance, with clear growth across each of our three divisions: Financial Services, Professional Services and Fund Solutions. This resulted in an 11.1% increase in Group operating income in Q3 compared to the same period last year. 

“We continued to see excellent organic growth momentum in the Professional Services business, where we were also delighted to welcome new colleagues from Haines Watts following the acquisition of their business in Leeds, Manchester, and Newcastle in August. The purchase is another demonstration of our Professional Services acquisition programme in action which has seen six transactions completed since the start of 2023. The Professional Services team are actively engaged in discussions about further deals.

“We’re also pleased to see the assets we manage for clients in our Financial Services business reach a record high of £62.7 billion. This reflects a combination of strong new business generation, continued net inflows of new client money and positive markets. It is encouraging to see that gross inflows in the quarter were consistent year-on-year despite the uncertainties around the upcoming Budget. In-line with other wealth managers, gross outflows have been elevated this year but, excluding the one-off impact on flows of a legacy service we discontinued, there was an underlying reduction in outflows in Q3. With inflation easing to 1.7% last month and further interest rate cuts on the horizon we expect the flow environment to continue to improve.

“Speculation about tax rises and potential changes to pensions in the new Government’s upcoming Budget on 30 October has seen very high levels of engagement with clients. While it is unclear at this stage precisely what changes will emerge, as an advice-led business we believe that this will present an opportunity to support even more clients with expert financial planning alongside the management of their investment portfolios, as well as tax advice for both businesses and private clients.”