Ashcourt Holdings Plc

The Ashcourt Group is a provider of regulated investment and financial planning services to a wide range of private individuals, trusts, charities and pension funds. Its principal offices are in West Malling (Kent), London, Brighton, Winchester and St. Peter Port, Guernsey. Total funds under management currently exceed £500 million of which £260 million is managed under discretionary or advisory mandates with Ashcourt Asset Management Limited (AAM). The balance derives from the financial planning services and has been placed in collective funds managed by other managers on the advice of Ashcourt Investment Advisers Limited (AIA) and Horder and Company (H&C). The Company’s ordinary share capital is currently traded on The Alternative Investment Market.

The Group’s business primarily has grown through a series of acquisitions. Each of the acquisitions has added to the Ashcourt management team as well as growing the funds under management. The Directors believe that Ashcourt’s corporate culture together with its strong well-defined structures, systems and corporate identity has made for the successful integration of the acquired businesses into the Group.

The Directors consider that, starting from its existing market position, the Company can benefit from a new phase of acquisition opportunities within its markets and that the admission to AIM, with its higher profile and easier access to capital, will facilitate this process, which will be pursued together with the continued organic growth of the business.

The Group has tried to differentiate itself in the market place by focusing on the provision of core wealth management services. The Directors have developed the Company to a point where it has expertise in every area of traditional wealth management with the exception of banking and general insurance. The purpose of this is to be able to offer clients an all encompassing service with an ability to advise on any aspect of investment, financial planning or savings that the client may require. A focus on client service at a relatively competitive price structure has also helped the Company differentiate itself from much of the competition.

As the financial services sector becomes more highly regulated and greater emphasis is placed upon tax planning the Directors believe the ability to combine high quality independent financial planning with institutional style investment management will place the Ashcourt Group in a strong position.

History

AAM was formed in May 2000 following the demerger of the asset management arm of Brachers Solicitors. At the same time AAM acquired the financial services division of Wilsons (solicitors) bringing combined funds under management of approximately £160 million.

The Group has subsequently grown the size of the funds under management by the acquisition of the financial services divisions of Blake Lapthorn (May 2001), Lawrence Graham (May 2002), DMH Solicitors (November 2002) and Hawkins Russell Jones (February 2003). As a result of these acquisitions and the Group’s organic growth, funds under management by the Group have risen to current levels of in excess of £500 million as at 11 June 2004. On 7 October 2002 the Company’s issued ordinary share capital was admitted to trading on OFEX.

In May 2000 the Company formed AIA to provide clients with life assurance and pensions advisory services. In August 2003 this business was expanded by the acquisition of BWH. The expansion of the financial planning operation has continued with the acquisition in June 2004 of H&C. This has balanced the revenue of the Group more equally between its asset management and financial planning businesses.

8 November 2001 a subsidiary, AAM (Guernsey), was established to manage AAM’s first Collective Investment scheme ("Collective"), Ashcourt Select Portfolio Limited, a Guernsey based OEIC. Since then an additional fund, Ashcourt Sterling Bond, has been launched together with the establishment of an offshore fund management operation.

The Group now employs over 75 people who are based in London, West Malling, Winchester, Brighton and Guernsey.

An offer for a private placing of 500,000 new Ordinary Shares at a price of 100p per Ordinary Share was made on 10 May 2004. The offer was made solely to the Company’s existing shareholders. The net proceeds of the offer to shareholders was £500,000, which was partially used to facilitate the acquisition of H&C. A further placing of 45,000 new Ordinary Shares was made on 3 June 2004 at a price of 100p per Ordinary Share to the vendors of H&C.

Back