Wealth, asset management and financial services group TEAM has announced the acquisition of the entire issued share capital of Omega Financial Services, a Jersey-based IFA specialising in retirement planning, mortgage advice, life assurance and investment advisory services.
An initial consideration of £2m is payable in cash, plus further deferred consideration of up to £2m in a mixture of cash and new shares in TEAM.
The transaction is subject to approval by the Jersey Financial Services Commission and is expected to complete in early 2022.
Omega provides financial and investment advice to more than 500 clients, with assets under advice (AUA) of £77m (as at 30 September 2021).
In the 12 months to 31 December 2020, Omega generated revenues of £1.1m and made a net profit before directors’ payments of £0.85m.
Omega generates a run-rate EBITDA of approximately £0.7m, which on a pro forma basis is expected to be a significant step for TEAM towards becoming cashflow positive.
In the 12 months to 14 November 2020, Omega reported profit before tax of £0.3m and had net assets of £0.4m.
Viberts acted for Omega in the sale of the company, led by Viberts Partner Paul Wilson and assisted by Eleanor Colley and Irene Bloch.
TEAM's annual results
In addition to the acquisition, TEAM has announced its final results for the year to 30 September 2021:
• Total client assets increased to £1.9bn (31 March 2021: £286m)
• AUM increased to £295m (31 March 2021: £286m) – this will rise to £372m with the addition of AUA from Omega
• Treasury Advisory AUA of £1.6bn (31 March 2021: nil)
For the year to 30 September 2021:
• Revenue: £1.5m
• Adjusted loss before tax: £0.8m (unadjusted loss before tax £1.7m, adjusted for acquisition and IPO-related expenses)
• No borrowings and cash of £4.9m, as at 30 September 2021
2021 highlights
• March – completed successful listing on the AIM market of the London Stock Exchange, raising gross proceeds of £7.5m to support the creation of an independent wealth and asset management business through a mix of organic and acquisition-led growth
• July – completed the £2.95m acquisition of JCAP, a Jersey-based provider of cash management services
• November – £4m proposed acquisition of Omega Financial Services (Jersey)
Mark Clubb (pictured), Executive Chairman of TEAM, said: “We are pleased to announce today both our results for the year alongside the acquisition of Omega, an entry point for us into the IFA market.
"We came to the market in March to build a modern wealth and asset management business and I am pleased to report that we are making good progress towards this objective.
"The acquisitions and senior hires we have made this year will be a significant step for TEAM towards becoming cashflow positive in 2023 and we have an excellent pipeline of opportunities to pursue, to underpin the future growth of the Group.”