Fairstone Group reported a 22 per cent increase in revenue as it benefitted from combining its “acquisitive success with organic growth”.
In its annual results for last year, revenue stood at £84.8mn, with a 21 per cent increase in funds under management to £13bn.
The firm also reported a 19 per cent increase in recurring income to £62.2mn.
Repeating income, which combines all revenues generated from existing clients, stood at 92 per cent of turnover.
Fairstone chief executive officer Lee Hartley said: “Combining our acquisitive success with organic growth has delivered considerable year-on-year growth, with revenue and gross margin significantly ahead of the prior year.
“The double-digit growth and solid performance across the key metrics of the business was further bolstered by Fairstone completing a market-leading transaction with global private equity house TA Associates in 2021, with private equity backers Synova also reinvesting and funders Alcentra increasing the scale of acquisition facilities available.”
The deal saw TA Associates take a significant stake in the business although details of the agreement were not disclosed.
At the time, Fairstone said its growth strategy was “further reinforced” as a result of TA Associates.
It said the investment formed “the central aspect of a multiple financing boost for the firm”, with private equity backers Synova also reinvesting into the group and funders Alcentra, the European arm of BNY Mellon, increasing the scale of the acquisition facilities available.
Meanwhile, adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) at the end of 2021 showed a profit of £12.8mn, while fully embedded Ebitda, which includes all partner firms currently undergoing integration, stood at £25mn.
Organic growth for the firm also accelerated, with a 12.6 per cent rise in wealth clients and a 16 per cent rise in transactional clients during 2021.
Hartley said: “Against this backdrop, we once again delivered strong progress across the business, making excellent headway against our strategic growth plan, as well as continuing to provide the highest level of service to our clients, which is borne out in our 98 per cent client retention rate.
“Combined this reinforces that the business is resilient, underpinned by a strong client base and a solid financial foundation to drive growth and accelerate our ambitious acquisition programme.”
In addition to eight completed acquisitions, 10 firms joined the downstream buy out (DBO) programme in 2021 with a view to full acquisition within the next two years.
Dublin-based Pax Financial was bought by Fairstone in September, adding €200m (£174.8mn) in assets under management.
Earlier this year, Fairstone bought Cumbria-based IFA Financial Concepts, adding more than £135mn to its funds under management.
Prior to that, it marked its 50th acquisition with its purchase of Sidmouth-based East Devon Associates for an undisclosed sum.
In January, Fairstone bought two advice firms, East2west Financial Services in Nairn and Brantwood Financial Planning in Huddersfield, adding £250mn to its Fum.
In November last year, Fairstone bought Northern Ireland-based Fairstone NI, adding Fum in excess of £150mn.
