TEAM plc (LON:TEAM), the wealth, asset management and complementary financial services group, has announced that it has exchanged contracts to acquire the entire issued share capital of Homebuyer Financial Services Limited (“HBFS”), a Jersey based financial planning business, for total consideration of £2.4 million in cash.
Executive Chairman Mark Clubb joins DirectorsTalk Interviews to discuss the acquisition of HBFS. Mark talks us through the strategic rationale behind the acquisition, now having bought 3 Financial Planners in Jersey in the last 18 months the objectives for this part of the business, the immediate plans for HBFS and expectations for 2024.
HBFS overview
· Founded in 1988, HBFS is an established Jersey based financial planning business advising local clients on investments, pensions and protection policies .
· HBFS has assets under advice of approximately £135 million with over 1,000 clients serviced by 10 full time employees.
· In addition, HBFS offers savings and retirement planning, insurance cover and mortgage and loan services to its Jersey client base.
· In the year ended 31 January 2023, HBFS generated audited revenues of approximately £1.3 million with a loss before tax of £15,000 and as at 31 January 2023 had audited gross assets of £838,000.
Consideration
The total consideration of £2.4 million is payable in cash on completion. HBFS will be acquired with surplus tangible net assets of £380,000, equivalent to the required level of regulatory capital for the business.
Conditions To Completion
The acquisition is subject to various conditions, including regulatory approval from the Jersey Financial Services Commission and a fundraising by the Company which is expected to occur in early 2024.
Acquisition rationale
· The acquisition of HBFS is in line with TEAM’s strategy to build its representation within the Channel Islands and is the third Jersey based financial planning business to be acquired by the Group, following the acquisitions of Concentric Group and Omega Financial Services in 2022.
· The Company expects that the transaction will generate significant economies of scale and that the existing HBFS business will benefit from being part of the broader TEAM platform.
· HBFS will be integrated into the TEAM platform under the Concentric brand led by its MD, Gordon Bennie.
· HBFS’ shareholders and directors, Michael Barney and Marzena Dziewulska, will remain with the Company for a three-month handover period and will be available thereafter in a consultancy capacity.
Update on Thornton acquisition
· In June 2023, TEAM announced the acquisition subject to regulatory approval of financial planning business, Thornton for consideration of up to £2.5 million. Since then, Thornton’s management team has decided to remain independent and TEAM has agreed to an amicable cancellation of the proposed acquisition.
Mark Clubb, Chairman of TEAM, commented: “I am delighted to welcome the HBFS team into the Group. We know them well and are confident that they will be a strong addition. This will be our fifth acquisition in Jersey since incorporation and we will focus on eliminating duplicate costs and supporting the team as they build their client base. There is no doubt that we are creating a high calibre service for clients in Jersey.”
Michael Barney, Managing Director of HBFS, said: “I believe that in TEAM we have a found a good home for HBFS. As a London quoted plc, and an established player in our market, it will provide our team an opportunity to grow and develop and our clients with a range of financial services that will enhance the service they receive. I look forward to seeing HBFS flourish under the TEAM banner.”
TEAM plc (LON:TEAM) is a wealth, asset management and complementary financial services group.
