Kingswood expands further with Joseph Lamb acquisition

Wealth and investment management company Kingswood has exchanged and completed the up-to-£15m acquisition of Joseph R Lamb Independent Financial Advisers, it announced on Monday, which it described as a “long-established” advisory business based in Rayleigh, Essex.

The AIM-traded firm also confirmed the completion of the acquisition of Allots Financial Services (AFS).

It said Joseph Lamb, established in 1970, provides financial advice to more than 1,930 active clients, and currently employs seven advisers, with 18 support staff covering clients primarily in Essex with around £393m assets under administration.

On an underlying basis for the 12 months ended 30 June, Joseph Lamb generated revenue of £3.8m and EBITDA of £1.55m.

Following regulatory approval, the business would be acquired for total cash consideration of up to £15.3m, payable over a two-year period.

Kingswood said £7.65m would be paid at closing, and the balance paid on a deferred basis, some of which would be subject to the achievement of pre-agreed performance targets.

“I have spent four years investigating our options for a possible merger or sale, looking to find a 'partner' that would enable us to take all aspects of our business forward and improve everything for the benefit of clients and staff,” said Joseph Lamb principal Martin Lamb.

“I am confident that Kingswood, as a leading advice business, have the team and culture to be able to do this and I am very excited about being able to deliver better outcomes for everybody.”

Lamb said his firm was “impressed” with Kingswood’s proposition, back office and systems, and the “depth of quality” in its management team.

“This should enable us to work together for everyone's benefit and deliver my ambition of delivering the best possible long-term outcome for all stakeholders and clients.”

On completion, the acquisition would be funded from funds from Kingswood’s recent issue of new convertible preference shares, under the terms of its convertible preference share subscription agreement with HSQ Investment - a wholly-owned indirect subsidiary of funds managed or advised by Pollen Street Capital.

Kingswood said its partnership with Pollen Street had to-date provided growth equity of £77.4m, to support existing and future acquisitions.

“Martin and his team at Joseph Lamb operate a long established and highly regarded business that has had a true client focus over 50 years,” said Kingswood’s UK chief executive officer David Lawrence.

“This acquisition creates a hub in Essex for Kingswood from which to grow and increases our footprint in the south, which is strategically important to us.

“This is our third acquisition of 2022 and we continue to have a strong pipeline of high-quality UK opportunities under negotiation, four of which are in exclusive due diligence as we continue to grow our financial planning and investment management reach across the UK.”

At 1114 GMT, shares in Kingswood Holdings were down 1.96% at 25p.