European Wealth Group posts sharp increase in FuM, to raise cash

The wealth manager reported a 25% increase in FuM for the financial year ending on 31 December 2016 to reach £1.5bn and said they had grown to over £1.65bn since.

Turnover increased by 23% to £9.4m from £7.7m, which alongside the group's focus on cost control pushed operating profits into the black to the tune of £346,000.

Losses before tax also declined, from £0.99m to £0.76m.

In parallel, the company announced it had agreed to terms to raise £9.3 of fresh capital which it would use to pay down its loans, leaving it debt free.

European Wealth chief John Morton commented: "European Wealth has had a successful year pursuing its strategy of growth through classic organic growth, selective acquisitions of businesses and the addition of revenue-generating staff resulting in another significant increase in our funds under management.

"Having built a structure which will enable us to continue to develop the business, we are now in a stronger position, bolstered by our new shareholders, to support the continued development of the Group to the benefit of our clients, staff and shareholders".

The company's shares were down by 11.29% to 27.50 as of 1154 BST.