Financial services firm Moneygate grows turnover 62% to £13.5m

Boldon-based financial firm Moneygate now manages £1.25bn of funds, new figures show

L-R David Thomas of NEL, Dean Richards, director of rugby at Newcastle Falcons and Lee Hartley, chief executive officer at Moneygate Group
L-R David Thomas of NEL, Dean Richards, director of rugby at Newcastle Falcons and Lee Hartley, chief executive officer at Moneygate Group

Financial services firm Moneygate Group has grown turnover 62% to £13.5m after reporting strong progress against its growth strategy.

The Boldon-based company – sponsor of the Newcastle Falcons – brings together independent financial advice and investment management through its own technology platform, working in both consumer and corporate markets.

Moneygate operates nationwide with independent financial advisors (IFAs) based around the country, alongside 62 staff at its Tyneside base, and the company has been backed by investment capital from the US and UK since its launch in 2008.

Latest accounts for 2013 show the firm currently advises on around £3.75bn of client funds “under influence”, with £1.25bn classed as funds under management.

The group said strong results were delivered across all areas of the business, with sales increasing by 62% to £13.5m and EBITDA was £89,000 ahead of forecast with a loss reduced to £1.03m from the previous year’s loss of £2.1m.

There was 130% growth in recurring income across the group, which stood at £6.9m at the year end, representing 51% of turnover.

The group continued its growth through the third quarter of 2014 with £21m of annualised revenues as at 30 September 2014 and a pipeline of work will see revenues soon exceed £25m.

Average income per adviser has increased to £127,000 from the 165 advisers, which is 15% ahead of the previous year.

The group said it moved into monthly profitability in October 2013 and the business has sufficient revenues, gross margin and controllable costs to maintain this position going forward.

The firm is targeting rapid growth through acquisition, and moved to broaden its range of investors in March of this year by securing the six-figure investment capital injection from the Finance For Business North East Growth Fund, managed by NEL Fund Managers.

Chief executive Lee Hartley said: “The foundations laid over the past years for Moneygate to build a different business model are clearly bearing fruit as we enter a more mature stage of our development.

“The financial and operational numbers are where we expect them to be and we are confident of maintaining profitability going forward, even taking into consideration additional investment into our infrastructure.

“The group is in discussion with a healthy pipeline of IFA firms and there is also a wider and very sizeable pool of suitable businesses identified as having the potential to be integrated partners within our organisation.”

Journalists

David Whetstone
Culture Editor
Graeme Whitfield
Business Editor
Mark Douglas
Newcastle United Editor
Stuart Rayner
Sports Writer