AIM Journal June 2022 Issue

Team makes latest acquisition as part of wealth management services consolidation strategy

Wealth manager and financial services consolidator Team is buying Jersey-based financial planning and investment consultancy Concentric for an initial £1.7m in cash, plus deferred consideration of up to £800,000 in shares. The deal still requires approval from the Jersey Financial Services Commission, and it should complete in August. A subscription is raising £2.65m at 60p a share to finance the deal and provide additional cash.

Concentric has £231m of assets under advice and the deal will build on an existing relationship. Concentric could develop in markets outside of Jersey. The acquisition should take the group’s assets under management and advice to £550m and cash under advice of £1.4bn. Team joined AIM in March 2021 when it raised £7.5m before expenses at 88p a share. The plan was to build a wealth and asset management business through acquisitions, and it has a strong niche in the market in Jersey. This is the third acquisition since the flotation.

Team is paying up to £2.95m for JCAP, which is a Jersey-based provider of cash management services that help to improve returns. These services can be offered to existing clients. An initial £2m has been paid for Omega Financial, an independent financial adviser in Jersey, which has assets under advice of £77m.

The base price of the management incentive plan has been reset from 88p to the subscription price of 60p. One-third of the incentive shares will be issued when the share price is double the subscription price and the rest when the market capitalisation exceeds £40m. Executive chairman Mark Clubb is no longer a participant in the incentive scheme. That means that the maximum dilution has been cut from 12.5% to 8.5%.

(Cover Image Source: Roman Kraft)