Rowan Dartington has received a further £5 million cash injection from its parent St James’s Place (SJP) to help fund its ambitious growth plans.
This adds to the £12 million that was pumped into the company in 2017 to ‘enable investment in future growth, expand its national presence… and to expand its operation into Asia’.
This investment has allowed the discretionary fund manager to significantly increase its headcount – from 131 people at the end of 2016 to over 250 now – and further its geographical reach, with a new regional hub to open in Taunton.
The beefing up of the company’s staff headcount has led to a significant increase in operating expenses, revealed by the firm’s latest results filed at Companies House this month.
The business closed 2017 with a loss of £7 million, up from £2.9 million in 2016, on turnover of £12.4 million, which was up 31% year-on-year. Administrative expenses rose to £9.7 million over the period, up from £6.4 million in 2016.
The firm’s asset growth continues to be solid though. Rowan Dartington had around £1 billion of assets under management when it was acquired by SJP in 2015. This has now doubled to £2 billion.
Executive chairman Graham Coxell (pictured), told Wealth Manager: ‘I think one of the fantastic things about being a part of SJP is that we recognise when you are growing at that level, you do have to invest ahead of the curve.’
He revealed that he is looking at three routes to growth: organic, semi-organic and non-organic.
‘The semi-organic will be potentially where an IFA joins the SJP partnership and might have looked after a large book of business with DFMs and where it is right for the client, they will move to RD. Then you have the non-organic. Our view is that with this increased burden from regulation, costs and overhead in the industry, we sense that there will be more consolidation.’