JM Finn’s move to brand new London headquarters has eaten into its profits for 2021, despite a record year for asset growth.
The wealth manager announced early last year it would be swapping its head office from Coleman Street, its home of 13 years, to downsized premises in Copthall Avenue to reflect the change in working habits post-pandemic.
The move, which kicked off in Q4 2021, saw its 250 London staffers all move onto one floor, as opposed to sprawling over five floors in the previous office.
At the time, CEO Hugo Bedford said the new location would help the business realise “the benefits of the office with a more agile approach to remote working”.
“As a people business, I firmly believe that without personal interaction we lose the innovation, idea sharing and camaraderie that makes up the fabric of a firm like ours.”
However, the firm admitted one-off costs associated with the move held back its profit growth last year. For the year ended 31 December 2021, profits came in at £8.24m, just 0.4% higher than the £8.21m generated in 2020.
This is despite assets under management climbing to £11.7bn over the period, a £1.6bn increase on the previous year.
Compared to 2020, net organic flows were up 125%, with net inflows into its discretionary arm reaching £323m. By the end of December, discretionary assets reached a “new high” of 83% of total AUM.
Since taking over as CEO in 2021, Bedford has devised a strategic plan to increase flows, broaden JM Finn’s client proposition and invest more heavily in tech.
“Our staff and clients have demonstrated tremendous resilience following the challenges of 2020 and I am delighted that the firm continues to grow as we offer our high quality, personal services to a wider range of clients,” he said.
“Whilst we cannot predict what the future will hold, the firm is in a strong position and I believe it will make good progress in meeting our strategic initiatives whilst continuing to provide the highest level of client services.”
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