TEAM plc, the wealth, asset management and complementary financial services group has announced its interim results for the year to 31st March 2024 as well as outlining the opportunities that lie ahead with the Group well-placed to benefit from the exodus of wealthy Britons to regions such as the UAE and Singapore.
This has been a highly active period for TEAM, with the completion in December of the acquisition of Neba to enhance international footprint. International management recruitment efforts have intensified in Asia and the Middle East and a number of new advisors are set to join before the end of September. In March, TEAM raised £1.8 million in capital and is currently in advanced discussions with a strategic investor for additional funding and deeper collaboration.
The first six months of the year saw growth in revenue of 116% to £4.1 million reflecting the full consolidation of Globaleye as well as a contribution from NEBA. Investment and fund management (“IFM”) revenues rose 23% to £0.6 million, reflecting the higher yield on the incremental asset managed in the models and the 6% increase in AUM. International recorded its first H1 revenues of £2.5 million (H1 23 nil).
TEAM’s investment strategy focuses on migrating assets under advice to assets under management, primarily through TEAM Multi Asset Portfolio Strategies (MPS), which they say will drive future group profitability.
The MPS investment performance remains strong, and assets under management have grown to £97 million. Material flows into the models are expected from TEAM’s newly established Guernsey Advice operation, and as the portfolios become available in a single UCITS structure, they become suitable for international clients. The UCITS unitization project will open new distribution channels, especially for the clients of international advisers.
Significant international growth opportunities ahead
Britain has seen a material exodus of the wealthy following Brexit and recent tax reforms. According to Henley & Partners’ ‘Private Wealth Migration Report 2024,’ Britain will lose 9,500 millionaires this year, more than double the previous year and nearly seven times the number in 2022. Britain is second only to China for high-net-worth outflows. A record 128,000 millionaires are expected to relocate, up from 120,000 in 2023 and 110,000 pre-pandemic in 2019.
Wealthy Britons and other nationalities are flocking to the UAE and Singapore as well as other favourable tax and investor-friendly regulation ‘safe havens’. This year, Singapore will gain 3,500 millionaires while the UAE welcomes 6,700.
Mark Clubb (pictured), Chairman of TEAM, commented: “Our MPS investment performance remains strong and we are confident that our newly established Guernsey advice operation will be instrumental in delivering an increase in these inflows which will drive profitability. Our recently expanded international footprint and wide-ranging scope of financial services leave us very well-placed to serve a rapidly growing number of wealthy Britons who are choosing to migrate to regions such as the UEA and Singapore.
“I remain confident in being able to achieve our short and longer-term prospects. Achieving breakeven remains the immediate aim alongside the goal of scalability and ‘escape velocity’ targeting growing the business to £20 million in revenues, 30%+ EBITDA margin, and £4 billion in AUA/M”
