TEAM plc (LON:TEAM) has announced its unaudited Interim Results for the six months to 31 March 2022.
· TEAM plc was created to be a new wealth, asset management and complementary financial services group
· In March 2021, TEAM completed a successful listing on AIM raising gross proceeds of £7.5 million and attracted the support of leading institutional fund managers and has since:
· In July 2021 completed the second acquisition, a treasury services business in Jersey, JCAP
· In December 2021 exchanged contracts on a further acquisition, a financial advice business in Jersey, Omega Financial Services, for a headline consideration of £4 million (awaiting regulatory approval)
· In May 2022, exchanged contracts for the acquisition of a second financial advice and investment consulting business, Concentric Group, for a headline consideration of £2.5 million (awaiting regulatory approval), and raised gross proceeds of £2.65 million from existing and new shareholders
· Client AUM in the asset management business was £231 million (H1 2022) versus £281 million (FY 2021), primarily as one client with £41 million of assets transferred to their historic adviser. Cash under advice was £1.4 billion (H1 2022)
· Strengthened investment management team with key senior hires, together with further client-facing staff joining post the period end
· Paid the maximum deferred consideration payment, of £737,500, for the acquisition of JCAP, as it surpassed its profit target for the year to December 2021
· Good visibility on further significant organic and acquisition led growth opportunities, within Jersey and other locations
· Staff numbers grown to 20, an increase from 10 at March 2021
· Revenue was up 63% to £1.0 million (H1 2021 £0.6 million)
· Loss for the year down 26% to £0.7 million (H1 2021 £0.9 million)
· Adjusted EBITDA flat at loss of £0.4 million (H1 2021 £0.4 million)
· Loss per share was down 53% to 8 pence (H1 2021 17 pence)
· Adjusted loss per share down 43% to 4 pence (H1 2021 7 pence)
· Cash balance as at 30 March 2022 £3.0 million, (H1 2021 £6.4 million)
Current trading and outlook
· Trading in line with management expectations
· The Company is benefiting from increasing new client opportunities, though partially offset by the challenging asset markets
· The Company remains in line to be cash positive once the acquisitions of Omega and Concentric have gained regulatory approval and are integrated into the group.
Commenting on the results Mark Clubb, Executive Chairman of TEAM, said:
“TEAM plc is delivering on its growth strategy. We have had a very active start as a public company, investing in and building a talented, multi-skilled team as well as putting in place the infrastructure to support them, together with the distribution capabilities to enable first class execution. To date, we have made four exciting acquisitions which have helped lay the foundations for the future.
We therefore have the building blocks in place to provide an integrated wealth and investment business. Our attention now turns to effectively integrating the acquired businesses into TEAM plc, and delivering the improved services to clients that will generate incremental revenues and profits for shareholders.
We have good momentum and are building our presence in our home market of Jersey, and starting to be recognised as a leading player in the Jersey wealth management market, as demonstrated by our ability to attract high quality staff and to win new clients.
With the completion of the two latest acquired businesses, we expect to be cash positive as a group. We are optimistic for the future.”