M&G’s full year results for 2022 reveal that the firm paid £73m for wealth manager and Financial Planner Sandringham Financial Partners.
Fund and wealth management group M&G received the regulatory go ahead for its acquisition of Sandringham in early 2022 but the cost was not disclosed initially.
Sandringham is a key part of M&G’s ambitions to become a major wealth manager via its new M&G Wealth division.
Sandringham added £2.5bn of assets under advice to M&G as well as 180 Sandringham advising partners and more than 10,000 individual clients. It’s one of many acquisitions made by M&G in the past year as it seeks to become a major player in the wealth management sector.
M&G also confirmed in its full year results for 2022 out today that it has completed its acquisition of 49% of national adviser Continuum with the rest of the shares expected to be acquired in two years time.
M&G acquired a 100% holding in Clear View Assured Limited, the holding company for Sandringham Financial Partners Limited (Sandringham) for £73m.
M&G will also pay a deferred amount to former shareholders employed by Sandringham of £8.6m over 2 years provided the shareholders remain in service. This sum is not part of the purchase price and will be accounted for as employment costs.
The full year figures show the firm saw adjusted operating profit fall to £529m (£721m in 2021). IFRS figures showed the firm made a loss of £1.6bn (£92m profit in 2021). Assets fell to £342bn (£370bn in 2021).
The firm said to boost growth and profitability it planned to make £200m in cost savings through a new “transformation programme.”
It has appointed Benoît Macé as chief strategy and transformation officer to drive simplification and “unlock growth.”
Andrea Rossi, group CEO, said he was pleased with M&G’s performance in 2022.
He said: “I am pleased with how M&G has performed in 2022. Through exceptional market volatility we have clearly demonstrated the diversification and resilience of our business model, which has enabled us to deliver consistently attractive returns for both our shareholders and for our clients.
“We achieved positive net client flows in Asset Management and Wealth for the second year in a row driven by the ongoing turnaround in Wholesale Asset Management and increased client inflows into PruFund. Adjusted operating profit has been impacted by market volatility but benefited from Wealth’s contribution more than doubling, as we continue to invest in the propositions offered by this business. We have also made a solid start to the achievement of our operating capital generation target of £2.5 billion by the end of 2024.
“We now have a clear strategy to build on the inherent strengths of our differentiated business model. We will maintain our financial strength, simplify our business and deliver profitable growth. We are at the start of the next phase for M&G and I am encouraged by the progress we are already making.
“Looking ahead, despite the uncertainty of the external environment, our diversified business model and strong financial position will underpin our ability to invest in the growth of our business and continue to deliver attractive shareholder returns.”
