Kingswood 2023 Half-year Report

Kingswood Holdings Limited

29 September 2023

 

Kingswood 2023 Half-year Report

Kingswood Holdings Limited (AIM: KWG), the international, fully integrated wealth and investment management group, is pleased to announce its unaudited interim financial results for the half year ended 30 June 2023.

H1 2023 Group Operating Profit was £5.0m, £0.5m or 10% higher than H1 2022.

UK & Ireland revenue increased by 41% compared to the same period last year, of which 86% is recurring in nature. UK & I Operating Profit was £7.7m and in line with expectations.  

US revenue decreased by 38% compared to the same period last year, impacted by a slowdown in capital market activity. Operating Profits were £0.6m, falling short of expectation, though with recovery expected in H2 2023.

Group Assets under Management and Advice (AuM/A) at June 2023 were £12.0bn, having increased by £1.5bn compared to December 2022, supported by UK&I acquisitions of Barry Fleming & Partners (BFP) and Moloney Investments Ltd (MMPI) and in the US by the on-boarding of an additional 9 registered representatives.

In the UK, migration of AuA into its Discretionary Central Investment Propositions, notably the IBOSS AM MPS solution has gathered pace with AuM reaching £1.05bn in June 2023, up from £0.65bn on December 2022 - an increase of 62%.

David Lawrence, Kingswood Chief Executive Officer, commented:

“I am delighted to share our interim financial results for 2023. Despite continued economic and market uncertainties, the group has delivered strong growth year over year, and we continue to build the business into a leading participant in the sector. Our business fundamentals remain strong, with positive net asset growth, high levels of recurring revenue and very low adviser and consequently client attrition.

“We continue to have a clear growth focus across the business with complementary investment in our People, Technology and Client Experience to enable and support this. Whilst our focus remains on inorganic opportunities with which we have a proven integration model, organic growth has seen an increased focus across our three drivers of more advice for more clients, migration of AuA into our investment propositions and growing our IBOSS IFA distribution channel. 

“In the US, whilst market conditions have impacted performance, the fundamentals across both the investment banking and alternatives divisions give us confidence that as markets recover an accelerated growth trajectory will re-appear.”

H1’23 - Strategic Highlights:

• UK & Ireland successfully completed the purchase of Moloney Investments Ltd (MMPI) and Barry Fleming & Partners (Tax, Trusts and Investment Planning) Limited (BFP):-
• 1. 70% acquisition of MMPI, a leading financial advisory group based in Dublin with €0.8bn AuM/A and EBITDA of c.€4.0m
  2. BFP, an IFA business based in Berkshire with £150m AuA and Operating Profit of c.£0.2m.

• UK & Ireland AuM/A increased by £1.4bn to £9.5bn in H1’23, driven by acquisitions and encouraging levels of organic growth:
• 1. Inorganic growth: £0.85bn client assets onboarded following the acquisitions of MMPI and BFP
  2. Strong levels of growth from vertical integration: £1.05bn client assets under our own management, an increase of £0.4bn compared to FY’22
  3. Institutional growth: £80m AuM net inflows in H1’23, with client assets 17% higher year on year.

• IBOSS has been ranked by Next Wealth as the sixth fastest growing discretionary fund manager by assets and percentage of assets over the past 12 months. We have retained our 5 Star and 5 Diamond Defaqto ratings and gained further recognition from the adviser community by scooping three accolades at the Citywire Wealth Manager Awards. In 2023, IBOSS hopes to become the only DFM provider to win FTAdviser’s 5 Star Award for four consecutive years.

• Kingswood was named as one of the UK's ‘Best Workplaces for Women’ in 2023, by Great Place to Work. We continue to make progress in addressing diversity imbalances across the organisation and remain committed to increasing the female representation of our UK adviser population to at least 25% in the medium term, compared to current levels of 20% (2022: 19%).

• Kingswood Go, our UK focused digital finance app and portal, is a great success with 3,525 clients registered and readily using the app. The app also enables us to serve smaller clients in an efficient and cost-effective manner. Accordingly, we can target clients at an earlier stage of their wealth journey.

• We strive to maintain the highest level of service for our clients as reflected in our ‘Vouchedfor’ rating of 4.8 / 5.0.

• Kingswood exhibits a strong Consumer Duty culture and pays particular attention to the needs of clients with characteristics of vulnerability. We successfully delivered in our Consumer Duty requirements by the 31^st July 2023 deadline.

• Inorganic growth continues to see focus with two transactions currently in exclusive discussions. We continue undertake a highly effective process of integration where the clients sit at the heart of this process.   

• Kingswood US unveiled Kingswood Investments, a comprehensive in-house investment banking and capital markets division - which is set to contribute to future revenue generation, with its inaugural deal scheduled to close in September. This addition, along with the business' existing investment banking team in Florida and SPAC Advisory team, positions Kingswood US as a provider of one of the industry's most extensive investment banking services.

• Kingswood US has invested in cutting-edge technology within the wealth management sector, ensuring that its advisors have access to a top-tier technology platform. The integration of Altigo, an industry-leading automated alternative investment platform, surpassed 1,200 subscriptions, representing $129 million in investments in just three years.

• Kingswood US achieved recognition in the USA Today list of Best Financial Advisory Firms, a ranking compiled by Statista for USA Today. This accolade resulted from assessing over 31,000 RIAs, narrowing it down to the top 500 firms based on their asset under management growth, client and peer recommendations, both in the short and long term.

• Our US footprint further expanded in the first half of the year adding nine new registered representatives and supporting growth in our total AuM/A in Kingswood US.

• Kingswood US has obtained approval from FINRA (Financial Industry Regulatory Authority) to broaden its authorized business activities. This development positions the company to continue its natural growth trajectory. The revised membership agreement grants the opportunity for the potential employment of 325 individuals, the operation of up to one hundred offices; and engagement in research activities. These approvals mark a significant milestone for Kingswood US, allowing the company to strengthen its capabilities, extend its reach, and solidify its standing in the market. This expanded scope of operations aligns seamlessly with Kingswood's strategy for organic growth and enlarging its market presence.

H1’23 - Financial Highlights

• Group revenue of £62.7m decreased by £17.6m, or 22%, compared to H1’22. This was due to a decrease of £24.4m in US revenues is reflected in US Investment Banking as macro-economic headwinds and market volatility led to a slowdown in capital market activity. The increase of £6.8m across UK & Ireland revenues has been achieved through a combination of acquisitions and organic growth.

• 86% of UK revenue is recurring in nature, providing a strong, annuity-style fee stream. Investment Banking fees are a larger portion of Kingswood US revenues, and transactional in nature, which means that recurring revenue for the Group was 33% compared to 28% in 2022.

• Operating Profit of £5.0m was £0.5m, or 10%, higher than H1’22 reflecting acquisitions in the UK & Ireland partly offset by the reduction in profits from lower US Investment Banking revenues in the US business. 

• Within Kingswood US, Investment Banking experienced a 48% decline in revenue compared to the previous year, delivering  $33.5 million, down from $65 million in 2022. This decrease was primarily attributed to lower deal volumes due to challenging macroeconomic conditions. Despite this decline, the business maintains a strong recruitment pipeline for new advisers, with a particular focus on developing consistent and recurring revenue streams through client asset management. During the first half of 2023, Kingswood US expanded its presence in the U.S. by adding 9 new registered representatives and increasing  AUM/A by $0.4 billion, contributing to a 32% increase in fee-based revenue.

The Kingswood Board believes Operating Profit is the most appropriate indicator to explain the underlying performance of the Group.  The definition of Operating Profit is profit before finance costs, amortisation and depreciation, gains and losses, and exceptional costs (business re-positioning and transaction costs)

£’000 (unless otherwise stated)	H1'23	H1'22	Change %	Change £
Wealth Planning	16,715	12,864	30%	3,851
Investment Management	3,917	3,588	9%	329
Kingswood Ireland	2,533	-	n/a	2,533
Kingswood US	39,565	63,937	(38)%	-24,372
Total Revenue	62,730	80,389	(22)%	-17,659
Recurring Revenue	33%	28%
Kingswood UK&I	7,729	5,810	33%	1,919
Kingswood US	591	1,529	(61)%	-938
Division Operating Profit	8,320	7,339	13%	981
Central Costs	(3,355)	(2,834)	(18)%	(521)
Operating Profit	4,965	4,505	10%	460
£’000 (unless otherwise stated)	H1'23	FY'22	Change %	Change £
Total Equity	64,806	73,967	12%	(9,161)
Total Cash	24,126	19,642	23%	4,484
Key Metrics				0
AUM/A (£m)	11,954	10,453	14%	1,501
# of UK&I Advisers	116	100	16%	16
# of US RIA/IBD reps	241	232	4%	9

Outlook

In our 2022 Annual Report we stated that our “near term” target for the group was to get to £12.5bn of AuA. We are delighted that, despite difficult conditions, we have made strong progress against this objective and at June 2023 our AuA/M now stands at £12bn (£10.5bn at December 2022). 

In the first half of the year, we have increased the amount of assets under our own management in our market leading discretionary propositions by £0.4bn to £1.05bn.  A strong suite of initiatives are in place to encourage vertical integration. We believe there remains a significant further opportunity within our existing wealth advisory AuA to increase from our current levels of 20.5% to 40%, over a three-year term, subject to client suitability.   

We stated an expectation for a total group proforma operating profit of £14.7m for 2023 in our 2022 annual results. Whilst our UK and Ireland business is tracking broadly in line with expectations, difficult conditions in the US lead to us revising this expectation to £13.6m due to lower than expected Investment Banking / Capital Markets activity and a more cautious approach in the US to users of our Alternatives division, as investors sought better returns across a broader range of opportunities.  

We remain confident in the success of our ambitious long-term growth strategy, grounded in supporting our clients to protect and grow their wealth. 

Our new advisory clients, which are historically derived from professional introducer base and referrals, continue to see strong inflows into the business, despite volatile market conditions. We also continue to invest in a range of lead generation and digital tools to widen reach to new and younger demographics.

In the second half of the year, we expect further organic growth and positive net inflows, and the business remains well positioned as financial markets begin to recover. 

For further details, please contact:

Kingswood Holdings Limited	[phone]
David Lawrence	www.kingswood-group.com
Cavendish Capital Markets Limited Ltd (Nomad & Broker)    Simon Hicks / Abigail Kelly	[phone]
GreenTarget (for Kingswood media)    Jamie Brownlee / Ellie Basle	[phone] [e-mail]

The Group's Nominated Adviser and Broker, finnCap Ltd, has now changed its name to Cavendish Capital Markets Limited following completion of its own corporate merger.

Company Registration No. 42316 (Guernsey)

KINGSWOOD HOLDINGS LIMITED

CONSOLIDATED INTERIM UNAUDITED FINANCIAL STATEMENTS

FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2023

KINGSWOOD HOLDINGS LIMITED CONTENTS	Page
Financial and Operational Review	1 - 2
Interim Consolidated Statement of Comprehensive Income	3 - 4
Interim Consolidated Statement of Financial Position	5 - 6
Interim Consolidated Statement of Changes in Equity	7 - 8
Interim Consolidated Statement of Cash Flows	9
Notes to the Interim Consolidated Financial Statements	10 - 26

Group Review:

The Group has continued to build momentum in 2023 and revenue and operating profit have grown despite unfavourable market conditions.  Our business continues to grow organically in both the UK and US and our acquisition activity is slowing down, as planned.   We have a strong leadership team that is driving tangible results and realising our ambition to become a leading fully integrated International wealth & investment management business.

Finance Review: 

We have maintained both cost and balance sheet discipline in the first half of 2023. Our focus is to maximise shareholder returns through Operating Profit growth combined with minimising our weighted average cost of capital. We also continue to maintain a strong discipline in how we think about the businesses we acquire, ensuring that the multiples we pay are within our risk appetite and funding profile.

Kingswood’s financial performance remained resilient in H1’23 against a continued backdrop of market volatility. Group Assets under Management and Advice (AuM/A) of £12.0bn at FY’23 represents a £1.5bn, or 14%, increase compared to FY’22.

Group revenue was £62.7m, a 22% decrease year on year. US Investment Banking revenues are lower as macro-economic headwinds and market volatility led to a slowdown in capital market activity. In the UK and Ireland a 41% revenue increase was achieved through a combination of acquisitions and organic growth. 

Operating Profit of £5.0m is 10% higher than 2022, driven by a £1m reduction in US profits and continued acquisition and organic growth. Central costs have increased by reflecting an increase in the central resources required to support a larger business.

The overall result for H1’23 was a loss before tax of £8.6m reflecting £0.3m of acquisition-related deferred consideration expenses, £3.0m amortisation and depreciation, £5.8m finance costs and £5.0m business re-positioning and transaction costs. 

The Group had £24.1m of cash as at H1’23, an increase of £4.5m since 31 December 2022 with a positive cashflow from operating activities.

Highlights – UK & Ireland: 

We have continued to build momentum on our strategic growth plans over the first half of the year, following the acquisition of Moloney Investments Ltd (MMPI) and Barry Fleming & Partners (BFP). The 70% acquisition of MMPI, a leading advisory group based in Dublin with €0.8bn AuM/A and annual Operating Profit of c.€4.0m, is a highly strategic acquisition for the Group providing access to the attractive Irish wealth management market whilst also offering diverse new avenues for growth. The purchase of BFP, an IFA business based in Berkshire has added £150m AuA contributing c.£0.2m annual Operating Profit.

The hard work and dedication of our staff enables us to continually deliver against our buy, build and grow strategy at pace whilst maintaining the highest levels of service and experience for our clients, as reflected in our ‘Vouchedfor’ rating of 4.8 / 5.0. We expect organic growth in both initial and ongoing fees post integration through accretive assets under influence and, despite continued economic uncertainty, the UK business generated healthy net client asset inflows over the first half of the year.

The business delivered double-digit revenue and operating profit growth in H1’23.  Revenue of £23.2m was £6.7m (41%) higher and over 80% of revenues are recurring in nature, providing the strong, annuity style revenue stream required to deliver sustainable, long term returns to our shareholders.

AuM/A increased by £1.4bn to £9.5bn over H1’23, driven by acquisitions and encouraging levels of organic growth. There were strong levels of vertical integration over the period, with client retail Assets under our own Management (AuM) in IBOSS AM MPS and Personal DFM now totalling £1.05bn, an increase from £0.65bn at FY’22. Institutional net asset inflows were £80m in the first six months of the year, with total AuM 17% higher year on year.

 

US Highlights: 

The US business continues to place a strong emphasis on maintaining a robust recruitment pipeline for new advisers, with a specific focus on cultivating reliable and recurring revenue streams through the management of client assets. In the first half of 2023, we extended our presence in the US by adding 9 new registered representatives and increasing our assets under management and advisement (AUM/A) by $0.2bn.

 In the first half of the year (H1), operating profit saw a decrease of 69% on a YoY basis, delivering $0.7m (2022: $2.3m). The decrease in operating profit was primarily driven within revenue, which saw a decline of 41% resulting in Group revenues of $48.4 million (2022: $82.2m). The escalating geopolitical tensions, the conflict in Ukraine, rising inflation rates, and the looming spectre of a global recession are collectively exerting additional stress on wealth management firms. These factors are especially challenging because they are contributing to lower growth in assets under management (AuM), which, in turn, is putting a strain on profitability. 

Investment Banking: Revenue in our Investment Banking division declined by 48% compared to the previous year, amounting to $33.5 million (compared to $65 million in 2022). This decrease was primarily due to subdued deal volumes resulting from unfavourable macroeconomic conditions. The situation was exacerbated by challenges in the banking and financial services sectors, compounded by the collapse of Silicon Valley Bank. However, we anticipate a rebound in deal volumes towards historical levels in the second half of the year as market conditions improve. Additionally, H1 marked the establishment of Kingswood Investments (KWUS' internal investment banking team), which is set to contribute to revenue generation in H2, with its inaugural deal scheduled to close in September.

Our Alternatives division experienced a revenue decline of 47% resulting in $2.3 million in revenue (compared to $4.4 million in 2022) This decline was attributed to shifting investment dynamics, as investors sought better returns across a broader range of opportunities, reducing reliance on riskier investments. Although there were concerns about asset value markdowns in private markets, the demand remains robust and is anticipated to align with historical performance in H2.

On a positive note, Advisor Fees category recorded a 32% revenue increase, delivering $5.3 million in revenue (compared to $3.9 million in 2022). This growth was fuelled by a 20 year-on-year increase in the number of advisors, contributing an additional $450 million in AuM.

These results reflect our ability to adapt to changing market conditions, seize growth opportunities, and maintain a strong footing in our core revenue-generating sectors. While challenges persist, we are optimistic about the prospects for the remainder of the fiscal year.

KINGSWOOD HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30 JUNE 2023

 

		Six months to				Six months to			Year ended
		30 June 2023				30 June 2022			31 Dec 2022
		(unaudited)				(unaudited)			(audited)
	Notes	£'000				£'000			£'000
Revenue	3	62,730				80,389			145,998
Direct expenses			(37,314)				(60,330)			(103,878)
Gross profit		25,416				20,059			42,120
Operating staff costs			(14,034)				(10,283)			(23,720)
Other operating costs			(6,417)				(5,271)			(9,704)
Total operating costs			(20,451)				(15,554)			(33,424)
Operating profit		4,965				4,505			8,696
Non-operating costs:
Business re-positioning costs			(369)				(1,202)			(1,964)
Finance costs			(7,138)				(1,455)			(6,398)
Amortisation and depreciation			(2,957)				(1,863)			(4,507)
Acquisition-related items:
Other (losses) / gains	4	-				-					(23)
Remuneration charge (deferred consideration)	10	(259)					6,309			(1,852)
Goodwill adjustment	8		-			(6,364)					-
Restructuring and integration costs		(4,161)					(1,621)					(4,924)
Loss before tax			(9,919)				(1,691)					(10,972)
Tax			(175)			(139)								(4,480)
Loss after tax			(10,094)				(1,830)					(6,492)
Other comprehensive income / (loss)
Items that may not be reclassified to profit or loss
Exchange differences on translation of foreign operations			-			(417)							-
Total comprehensive loss			(10,094)				(2,247)					(6,492)

 

		Six months to				Six months to		Year ended
		30 June 2023				30 June 2022		31 Dec 2022
		(unaudited)				(unaudited)		(audited)
		£'000				£'000		£'000
- Owners of the parent company			(10,537)				(2,545)		(7,797)
- Non-controlling interests		443				715		1,305
Total comprehensive loss is attributable to:
- Owners of the parent company			(10,537)				(2,962)		(7,797)
- Non-controlling interests		443				715		1,305
Loss per share:
- Basic loss per share	5	£ (0.05)				£ (0.01)		£ (0.04)
- Diluted loss per share	5	£ (0.01)				£ (0.00)		£ (0.01)
The notes on pages 10 - 26 form an integral part of the financial statements.

 

			30 Jun 2023			30 Jun 2022			31 Dec 2022
			(unaudited)			(unaudited)			(audited)
	Notes		£'000			£'000			£'000
Non-current assets
Property, plant and equipment	6		916			916			832
Right-of-use assets	7		3,298			3,071			3,553
Goodwill and other intangible assets	8		148,658			97,231			123,469
Deferred tax asset			4,492			-			4,492
			157,364			101,218			132,346
Current assets
Short term investments			49			72			52
Trade and other receivables			10,380			7,207			9,274
Cash and cash equivalents			24,126			20,693			19,624
			34,555			27,972			28,950
Total assets			191,919			129,190			161,296
Current liabilities
Trade and other payables			13,892			18,515			17,597
Deferred consideration payable	10		15,513			14,286			20,771
			29,405			32,801			38,368
Non-current liabilities
Deferred consideration payable	10		12,559			10,304			9,228
Other non-current liabilities			2,519			2,956			2,806
Loans and borrowings			64,984			-			24,343
Deferred tax liability			17,646			7,521			12,584
Total liabilities			97,708			53,582			87,329
Net assets			64,806			75,608			73,967
Equity
Share capital	11		10,846			10,846			10,846
Share premium	11		8,224			8,224			8,224
Preference share capital	12		70,150			70,150			70,150
Other reserves			16,168				11,597			14,373
Foreign exchange reserve			(1,087)				417			(422)
Retained (loss)				(42,132)			(27,638)			(31,595)
Equity attributable to the owners of the Parent Company			62,169			73,596			71,576
Non-controlling interests (NCI)			2,637			2,012			2,391
Total equity			64,806			75,608			73,967

 

The notes on pages 10 - 26 form an integral part of the financial statements.
The financial statements of Kingswood Holdings Limited (registered number 42316) were approved and authorised for issue by the Board of Directors, and signed on its behalf by:
David Hudd
Chairman
Date: 29th September 2023

 

              KINGSWOOD HOLDINGS LIMITED

                INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)

                FOR THE PERIOD ENDED 30 JUNE 2023

		Share capital and share premium			Preference share capital			Other reserves				Foreign exchange reserve				Retained earnings					Equity attributable to the owners of the parent Company					NCI					Total
		£'000			£'000			£'000				£'000				£'000					£'000					£'000					£'000
	Balance at 1 January 2022		19,070			70,150				11,041				(488)					(23,800)					75,973			925						76,898
	Loss for the period		-			-			-				-				(2,545)					(2,545)					715					(1,830)
	Movement on NCI		-			-			-				-				-					-					372							372
	Consolidation adjustment		-			-			-				-				(1,293)					(1,293)					-							(1,293)
	Foreign exchange gain		-			-			-				905				-					905					-					905
	Share based remuneration		-			-			556				-				-					556					-					556
	Balance at 30 June 2022 (unaudited)		19,070			70,150				11,597				417				(27,638)					73,596			2,012						75,608
	(Loss) / profit for the period		-			-			-				-					(5,252)					(5,252)			590											(4,662)
	Movement on NCI		-			-			-				-				-					-						(351)							(351)
	Other adjustment		-			-			-				-				1,293					1,293					-					1,293
	Share based remuneration		-			-			296				-				-					296					-					296
	Preference share capital reserve		-			-           2,480							-				-					2,480							-								2,480
	Foreign exchange loss		-			-			-					(839)					2					(837)			140						(697)
	Balance at 31 December 2022 (audited)		19,070			70,150			14,373					(422)					(31,595)					71,576			2,391						73,967

 

(Loss) / profit for the period		-		-		-		-			(10,537)		(10,537)			443		(10,094)
Movement on NCI		-		-		-		-		-				-		(197)		(197)
Consolidation adjustment		-		-		-		-		-				-		-		-
Foreign exchange movement		-		-		-		(665)		-				(665)		-		(665)
Share based remuneration		-		-		498		-		-				498		-		498
Preference share capital		-		-		1,297		-		-				1,297		-		1,297
Foreign exchange gain		-		-		-		-		-				-		-		-
Balance at 30 June 2023 (unaudited)		19,070		70,150		16,168		(1,087)		(40,835)				62,169		2,637		66,806

 

			Period					Period					Year ended
			30 Jun 2023					30 Jun 2022					31 Dec 2022
			(unaudited)					(unaudited)					(audited)
		Notes	£'000					£'000					£'000
Net cash generated from / (used in) operating activities		13		3,852				(8,989)					(2,704)
Investing activities
Property, plant and equipment purchased				(99)					(50)					(113)
Acquisition of investments				(28,458)				(13,180)						(32,272)
Remuneration charge (deferred consideration)				(6,953)				(173)						(10,774)
Net cash used in investing activities				(35,510)					(13,403)					(43,159)
Financing activities
Interest paid				(3,565)					(11)					(21)
Lease payments				(430)					(454)					(852)
Dividends paid to non-controlling interests			-					-						(811)
New loans (repaid) / loans received				40,607				(156)					23,784
Net cash (used in)/generated from financing activities				36,612				(621)					22,100
Net (decrease)/increase in cash and cash equivalents				4,954				(23,013)					(23,763)
Cash and cash equivalents at beginning of Period			19,624					42,933					42,933
Effect of foreign exchange rates			(452)					771					454
Cash and cash equivalents at end of Period			24,126					20,691					19,624
The notes on pages 10 - 26 form an integral part of the financial statements.

 

 

1	Accounting policies
	General information
	Kingswood Holdings Limited is a company incorporated in Guernsey under The Companies (Guernsey) Law, 2008. The shares of the Company are traded on the AIM market of the London Stock Exchange (ticker symbol: KWG). The nature of the Group’s operations and its principal activities are set out in the Strategic Report. Certain subsidiaries in the Group are subject to the FCA’s regulatory capital requirements and therefore required to monitor their compliance with credit, market and operational risk requirements, in addition to performing their own assessment of capital requirements as part of the ICAAP.
1.1	Basis of accounting
	The Group’s interim condensed consolidated financial statements are prepared and presented in accordance with IAS 34 ‘Interim Financial Reporting’. The accounting policies adopted by the Group in the preparation of its 2022 interim report are consistent with those disclosed in the annual financial statements for the year ended 31 December 2021. The information relating to the six months ended 30 June 2022 and the six months ended 30 June 2021 do not constitute statutory financial statements and has not been audited. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group’s most recent annual financial statements for the year ended 31 December 2021.
1.2	Changes in significant accounting policies
	The Group has applied the same accounting policies and methods of computation in its interim consolidated financial statements as in its 2022 annual financial statements.
1.3	Significant accounting policies
	Going concern
	The Directors review the going concern position of the Group on a regular basis as part of the monthly reporting process which includes consolidated management accounts and cash flow projections and have, at the time of approving the financial statements, a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.
	Revenue recognition
	Performance obligations and timing of revenue recognition
	The majority of the Group’s UK revenue, being investment management fees and ongoing wealth advisory, is derived from the value of funds under management / advice, with revenue recognised over the period in which the related service is rendered. This method reflects the ongoing portfolio servicing required to ensure the Group’s contractual obligations to its clients are met. This also applies to the Group’s US Registered Investment Advisor (“RIA”) business.
	For certain commission, fee-based and initial wealth advisory income, revenue is recognised at the point the service is completed. This applies in particular to the Group’s US Independent Broker Dealer (“IBD”) services, and its execution-only UK investment management. There is limited judgement needed in identifying the point such a service has been provided, owing to the necessity of evidencing, typically via third-party support, a discharge of pre-agreed duties.

 

1	Accounting policies
	The US division also has significant Investment Banking operations, where commission is recognised on successful completion of the underlying transaction.
	Determining the transaction price
	Most of the Group’s UK revenue is charged as a percentage of the total value of assets under management or advice. For revenue earned on a commission basis, such as the US broker dealing business, a set percentage of the trade value will be charged. In the case of one-off or ad hoc engagements, a fixed fee may be agreed.
	Allocating amounts to performance obligations
	Owing to the way in which the Group earns its revenue, which is largely either percentage-based or fixed for discrete services rendered, there is no judgement required in determining the allocation of amounts received. Where clients benefit from the provision of both investment management and wealth advisory services, the Group is able to separately determine the quantum of fees payable for each business stream.
	Further details on revenue, including disaggregation by operating segment and the timing of transfer of service(s), are provided in note 3 below.
2	Critical accounting judgements and key sources of estimation uncertainty
	In the application of the Group’s accounting policies, which are described in note 1, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
	Critical judgements in applying the Group's accounting policies
	The following are the critical judgements that the Directors have made in the process of applying the Group’s accounting policies that had the most significant effect on the amounts recognised in the financial statements.
	Assessment of control
	Control is considered to exist where an investor has power over an investee, or else is exposed, and has rights, to variable returns. The Group determines control to exist where its own direct and implicit voting rights relative to other investors afford the Group – via its board and senior management – the practical ability to direct, or as the case may be veto, the actions of its investees.  The company holds 50.1% of voting rights in Kingswood US, LLC, parent company of the US and its subsidiaries, as well as a majority stake in the US division’s advisory board when grouped with affiliated entities. The Group has thus determined that the Company has rights, to variable returns from involvement with Kingswood US, LLC and its subsidiaries; and the ability to use power over the US Group to affect the amount of those returns, as such the Company has consolidated the sub-group as subsidiaries with a 49.9% non-controlling interest. The company holds 70% of voting rights in Moloney Investments Limited, parent company of Ireland and its subsidiaries, as well as a majority stake in the Ireland division’s advisory board when grouped with affiliated entities. The Group has thus determined that the Company has the practical ability to direct the relevant activities of Moloney Investments Limited and its subsidiaries and has consolidated the sub-group as subsidiaries with a 30% non-controlling interest.

 

2	Critical accounting judgements and key sources of estimation uncertainty
		Estimates and Assumptions
		Intangible assets:
		Expected duration of client relationships
		The Group makes estimates as to the expected duration of client relationships to determine the period over which related intangible assets are amortised. The amortisation period is estimated with reference to historical data on account closure rates and expectations for the future. During the period, client relationships were amortised over a 10-20 year period.
		Goodwill
		The amount of goodwill initially recognised as a result of a business combination is dependent on the allocation of the purchase price to the fair value of the identifiable assets acquired and the liabilities assumed. The determination of the fair value of the assets and liabilities is based, to a considerable extent, on management’s judgement. Goodwill is reviewed annually for impairment by comparing the carrying amount of the Cash Generating Units (CGU) to their expected recoverable amount, estimated on a value-in-use basis. The CGUs are based on the business segments as outlined in note 3.
	Share-based remuneration:
	Share based payments
	The calculation of the fair value of share-based payments requires assumptions to be made regarding market conditions and future events. These assumptions are based on historic knowledge and industry standards. Changes to the assumptions used would materially impact the charge to the Statement of Comprehensive Income.
	Deferred tax:
	Recoverability of deferred tax assets
	The amount of deferred tax assets recognised requires assumptions to be made to the financial forecasts that probable sufficient taxable profits will be available to allow all or part of the asset to be recovered.
	Leases:
	Estimating the incremental borrowing rate
	The Group cannot readily determine the interest rate implicit in leases where it is the lessee, therefore, it uses its incremental borrowing rate to measure lease liabilities. This is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.
	The incremental borrowing rate therefore reflects what the Group ‘would have to pay’, which requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms and conditions of the lease (for example, when leases are not in the subsidiary’s functional currency). The Group estimates the incremental borrowing rate using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates (such as the subsidiary’s stand-alone credit rating).
	Deferred consideration:
	Payment of deferred consideration
	The Group structures acquisitions such that consideration is split between initial cash or equity settlements and deferred payments. The initial value of the contingent consideration is determined by EBITDA and/or revenue targets agreed on the acquisition of each asset. It is subsequently remeasured at its fair value through the Statement of Comprehensive Income, based on the Directors’ best estimate of amounts payable at a future point in time, as determined with reference to expected future performance. Forecasts are used to assist in the assumed settlement amount.

 

3		Business and geographical segments
		Information reported to the Group’s Non-Executive Chairman for the purposes of resource allocation and assessment of segment performance is focused on the category of customer for each type of activity. The Group’s reportable segments under IFRS 8 are as follows: investment management, wealth planning and US operations. The Group has disaggregated revenue into various categories in the following table which is intended to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic date and enable users to understand the relationship with revenue segment information provided below. The following is an analysis of the Group’s revenue and results by reportable segment for the year to 31 December 2021. The table below details a full year's worth of revenue and results for the principal business and geographical divisions, which has then reconciled to the results included in the Statement of Comprehensive Income:
				Investment management			Wealth planning				US  operations				IRE operations		Group					Total
	Perioded Ended 30 June 2023
	Continuing operations:			£'000			£'000				£'000				£’000		£'000					£'000
	Revenue (disaggregate by timing):
	Non-recurring			452			2,053				37,514				1,743		-					41,762
	Recurring			3,465			14,662				2,051				790		-					20,968
	External sales			3,917			16,715				39,565				2,533		-					62,730
	Direct expenses				(569)				(793)				(35,952)			-	-							(37,314)
	Gross profit			3,348			15,922				3,613				2,533		-					25,416
	Operating profit / (loss)			1,379			5,589				591				761			(3,355)					4,965
	Business re-positioning costs				(76)				(104)				(124)			-	(64)						(368)
	Finance costs				(7)				(87)				(8)			(1)	(7,035)						(7,138)
	Amortisation and depreciation			(9)					(823)				-		(18)			(2,107)					(2,957)
	Remuneration charge (deferred consideration)			-					-				-				(259)					(259)
	Transaction costs			(61)			(272)				-									(3,828)		(4,161)
	Goodwill adjustment			-			-				-									-		-
	Profit / (loss) before tax from continuing operations			1,226			4,303				459				742			(16,649)					(9,919)
	Tax			-					(157)				(14)		(4)			-					(175)
	Profit / (loss) after tax from continuing operations			1,226			4,146				445				738			(16,649)					(10,094)

 

3	Business and geographical segments
	Perioded Ended 30 June 2022	Investment management			Wealth planning			US  operations			Group			Total
	Continuing operations:	£'000			£'000			£'000			£'000			£'000
	Revenue (disaggregated by timing):
	Non-recurring	465			1,776			55,944			-			58,185
	Recurring	3,123			11,088			7,993			-			22,204
	External sales	3,588			12,864			63,937			-			80,389
	Direct expenses		(717)			(519)			(59,094)		-				(60,330)
	Gross profit	2,871			12,345			4,843			-			20,059
	Operating (loss) / profit	685			5,125			1,529				(2,834)			4,505
	Business re-positioning costs		(140)			(336)			(397)		(329)				(1,202)
	Finance costs	(1)				(70)			(3)			(1,381)			(1,455)
	Amortisation and depreciation	-				(687)			42		(1,218)				(1,863)
	Remuneration charge (deferred consideration)	-				(42)			-			6,351			6,309
	Transaction costs	-				-			-			(1,621)			(1,621)
	Goodwill adjustment	-				-			-			(6,364)			(6,364)
	Profit / (loss) before tax from continuing operations		544			3,990			1,171			(7,396)			(1,691)
	Tax	-			(129)				11		(21)			(139)
	Profit / (loss) after tax from continuing operations		544			3,861		1,182				(7,417)			(1,830)

 

3	Business and geographical segments
	Year Ended 31 December 2022		Investment management			Wealth planning			US  operations			Group			Total
	(audited)
	Continuing operations:		£'000			£'000			£'000			£'000			£'000
	Revenue (disaggregated by timing):
	Non-recurring		931			2,045			118,396			-			121,322
	Recurring		6,252			15,169			9,431			23			28,394
	External sales		7,183			17,214			127,827			23			149,716
	Direct expenses			(1,476)			(913)			(118,108)			-			(120,497)
	Gross profit		3,176			16,301			9,719			23			29,219
	Operating (loss) / profit		365			5,779			5,123				(4,940)			6,327
	Business re-positioning costs			(177)			(239)			(263)			(885)			(1,564)
	Finance costs		-				(72)			2			(4,857)			(4,927)
	Amortisation and depreciation		-				(1,197)			(212)			(990)			(2,399)
	Other gains		-			-			-				(3,056)			(3,056)
	Remuneration charge (deferred consideration)		-				(3,691)			-			(3,318)			(7,009)
	Transaction costs		-				(4)			-			(1,832)			(1,836)
	(Loss) / profit before tax from continuing operations		188			576			4,650				(19,878)			(14,464)
	Tax		-				(16)			(317)			(428)			(761)
	(Loss) / profit after tax from continuing operations		188			560			4,333				(20,306)			(15,225)
4	Other (losses) / gains
									Six months to			Six months to			Year Ended
									30 June 2023			30 June 2022			31 December 2022
									(unaudited)			(unaudited)			(audited)
									£'000			£'000			£'000
	Additional payments due on acquired businesses								-			-				-
	Unrealised gain/(loss) on investment								-			-				(23)
									-			-				(23)

 

5	Earnings per share
		Six months to					Six months to					Year ended
		30 Jun 2023					30 Jun 2022					31 Dec 2022
		(unaudited)					(unaudited)					(audited)
		£'000					£'000					£'000
	Loss from continuing operations for the purposes of basic loss per share, being net loss attributable to owners of the Group		(10,537)					(2,545)					(7,797)
	Number of shares
	Weighted average number of ordinary shares for the purposes of basic loss per share	216,920,719					216,920,719					216,920,724
	Effect of dilutive potential ordinary shares:
	Share options	6,624,664					8,580,094					5,897,018
	Convertible preference shares in issue	525,217,205					469,263,291					512,407,029
	Weighted average number of ordinary shares for the purposes of diluted loss per share	748,762,592					694,764,104					735,224,771
	Continuous operations:
	Basic loss per share	£(0.05)					£(0.01)					£(0.04)
	Diluted loss per share	£(0.01)					£(0.00)					£(0.01)
	Total loss:
	Basic loss per share	£(0.05)					£(0.01)					£(0.04)
	Diluted loss per share	£(0.01)					£(0.00)					£(0.01)

 

6	Tangible Assets
		Fixtures and equipment
		£'000
	Cost
	At 1 January 2022	1,655
	Additions	86
	Acquisitions NBV	61
	At 30 June 2022	1,802
	Additions	27
	Acquisitions NBV	19
	Reclassifications	1,438
	FX on opening	17
	At 31 December 2022	3,303
	Additions	99
	Acquisitions NBV	160
	Reclassifications	39
	FX on opening	(7)
	At 30 June 2023	3,594
	Accumulated depreciation
	At 1 January 2022	714
	Depreciation charged in the Period	172
	At 30 June 2022	886
	Depreciation charged in the Period	138
	Reclassifications	1,438
	FX on opening	9
	At 31 December 2022	2,471
	Depreciation charged in the Period	153
	Reclassifications	39
	FX on opening	15
	At 30 June 2023	2678
	Net book value
	At 30 June 2023	916
	At 31 December 2022	832
	At 30 June 2022	916

 

7	Right-of-use assets
		Land and buildings
		£'000
	Cost
	At 1 January 2022	4,089
	Movement due to FX		8
	Additions	742
	At 30 June 2022	4,839
	Current year adjustment	(137)
	Movement due to FX	(8)
	Additions	963
	At 31 December 2022	5,657
	Current year adjustment	137
	Additions	66
	At 30 June 2023	5,860
	Accumulated depreciation
	At 1 January 2022	1,370
	Depreciation charged in the Period	398
	At 30 June 2022	1,768
	Current year adjustment	(25)
	Depreciation charged in the Period	361
	At 31 December 2022	2,104
	Current year adjustment	25
	Depreciation charged in the Period	433
	At 30 June 2023	2,562
	Net book value
	At 30 June 2023	3,298
	At 31 December 2022	3,553
	At 30 June 2022	3,071

 

8	Goodwill and other intangible assets
		Goodwill		Other intangible assets		Total
		£'000		£'000		£'000
	Cost
	At 1 January 2022	45,150		42,615		87,765
	Additions	11,226		13,449		24,675
	Revaluation of acquisition	(6,364)		-		(6,364)
	At 30 June 2022	50,012		56,064		106,076
	Additions	7,176		20,042		27,218
	Exchange adjustments	629		-		629
	At 30 December 2022	57,817		76,106		133,923
	Additions	7,306		20,554		27,860
	Movement due to FX	(315)		14		(301)
	Disposals	-		-		-
	At 30 June 2023	64,808		96,674		161,482
	Accumulated amortisation
	At 1 January 2022	2,279		5,231		7,510
	Charge for period	-		1,335		1,335
	At 30 June 2022	2,279		6,566		8,845
	Disposals
	Charge for period	-		1,609		1,609
	At 31 December 2022	2,279		8,175		10,454
	Disposals
	Charge for period	-		2,370		2,370
	At 30 June 2023	2,279		10,545		12,824

 

8	Goodwill and other intangible assets (continued)
	Net book value
	As at 30 June 2023		62,529		86,129				148,658
	As at 31 December 2022		55,538		67,931				123,469
	As at 30 June 2022		47,733		49,498				97,231
9	Lease liabilities
	The lease liabilities are included in trade and other payables and other non-current liabilities in the statement of financial position.
							Land and buildings
							£'000
	At 1 January 2022						3,274
	Additions						735
	Interest expense						95
	Lease payments							(451)
	At 30 June 2022						3,653
	Additions						920
	Interest expense						52
	Lease payments							(401)
	At 31 December 2022						4,274
	Additions						66
	Interest expense						71
	Lease payments							(430)
	At 30 June 2023						3,981
	The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, and subsequently at cost less any accumulated depreciation and impairment losses and adjusted for certain re-measurements of the lease liability.

 

9	Lease liabilities (continued)
	The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Group’s incremental borrowing rate.
	The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payment made.
	The Group has applied judgement to determine the lease term for some lease contracts in which it is a lessee that includes renewal options. The assessment of whether the Group is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognised.
10	Deferred consideration payable
		Six Months to		Six Months to		Year Ended
		30 June 2023		30 June 2022		31 December 2022
		£'000		£'000		£'000
	Deferred consideration payable on acquisitions:	28,072		24,590		29,999
	- falling due within one year	15,513		14,286		20,771
	- due after more than one year	12,559		10,304		9,228
	The deferred consideration payable on acquisitions is due to be paid in cash. The deferred consideration liability is contingent on performance requirements during the deferred consideration period. The value of the contingent consideration is determined by EBITDA and/or revenue targets agreed on the acquisition of each asset, as defined under the respective Share or Business Purchase Agreement. As at the reporting date, the Group is expecting to pay the full value of its deferred consideration as all acquisitions are on target to meet the requirements. Previously all deferred consideration payable on acquisitions was recorded as a deferred liability and included in the fair value of assets. However, in circumstances where the payment of deferred consideration is contingent on the seller remaining within the employment of the Group during the deferred period, the contingent portion of deferred consideration is not included in the fair value of consideration paid, rather is treated as remuneration and accounted for as a charge against profits over the deferred period.

 

11	Share capital
		Six months to		Six months to		Year ended						Six months to				Six months to				Year ended
		30 June 2023		30 June 2022		31 Dec 2022						30 June 2023				30 June 2022				31 Dec 2022
		(unaudited)		(unaudited)		(audited)						(unaudited)				(unaudited)				(audited)
		Shares		Shares		Shares						£'000				£'000				£'000
	Ordinary shares issued:
	Fully paid	216,920,719		216,920,719		216,920,719						10,846				10,846				10,846
		216,920,719		216,920,719		216,920,719						10,846				10,846				10,846
	Share capital and share premium
							Number of ordinary shares				Par value				Share premium				Total
							'000				£'000				£'000				£'000
	At 1 January 2022						216,921				10,846				8,224				19,070
	Issued during year						-				-				-				-
	As at 30 June 2022						216,921				10,846				8,224				19,070
	At 31 December 2022						216,921				10,846				8,224				19,070
	Issued during year						-				-				-				-
	At 30 June 2023						216,921				10,846				8,224				19,070
	Ordinary shares have a par value of £0.05 per share. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the company in proportion to the number of, and amounts paid on, shares held. On a show of hands, every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote and upon a poll each share is entitled to one vote. Kingswood Holdings Limited does not have a limit on the amount of authorised capital.
	As at 31 December 2022 KPI (Nominees) Limited held 144,125,262 Ordinary Shares, representing 66.4 per cent of ordinary shares in issue at year end.

 

12

Preference share capital

Six Months to

Six Months to

Year Ended

Six Months to

Six Months to

Year Ended

30 June 2023

30 June 2022

31 Dec 2022

30 June 2023

30 June 2022

31 Dec 2022

(unaudited)

(unaudited)

(audited)

(unaudited)

(unaudited)

(audited)

Shares

Shares

Shares

£'000

£'000

£'000

Convertible preference shares issued:

Fully paid

77,428,443

77,428,443

77,428,443

77,428

77,428

77,428

77,428,443

77,428,443

77,428,443

77,428

77,428

77,428

Six Months to

Six Months to

Year Ended

30 June 2023

30 June 2022

31 Dec 2022

(unaudited)

(unaudited)

(audited)

Equity component

70,150

70,150

70,150

Liability component

-

-

-

70,150

70,150

70,150

On 12 September 2019, Kingswood Holdings Limited entered into a subscription agreement with HSQ Investment Limited, a wholly owned indirect subsidiary of funds managed and/or advised by Pollen Street Capital, to subscribe for up to 80 million irredeemable convertible preference shares, at a subscription price of £1 each (the Subscription). Pollen Street Capital is a global, independent alternative asset investment management company, established in 2013 with currently £3.2 billion gross AUM across private equity and credit strategies, focused on the financial and business services sectors, with significant experience in speciality finance.

All irredeemable convertible preference shares convert into new ordinary shares at Pollen Street Capital’s option at any time from the earlier of an early conversion trigger or a fundraising, or automatically on 31 December 2023. Preferential dividends on the irredeemable convertible preference shares accrue daily at a fixed rate of five per cent per annum from the date of issue. Effective 17 December 2021 onwards, these will be settled via the issue of additional ordinary shares, thereby extinguishing the liability component.

 

13	Notes to the cash flow statement
	Cash and cash equivalents comprise cash and cash equivalents with an original maturity of three months or less. The carrying amount of these assets is approximately equal to their fair value.
		Six Months to			Six Months to			Year Ended
		30 June 2023			30 June 2022			31 Dec 2022
		(unaudited)			(unaudited)			(audited)
		£'000			£'000			£'000
	Loss before tax		(9,919)		(1,691)			(10,972)
	Depreciation and amortisation	2,957			1,863			4,507
	Goodwill adjustment	-			6,364			-
	Finance costs	6,639			1,455			6,398
	Remuneration charge (deferred consideration)		259		(7,399)			1,852
	Acquisition of investments		-		-			586
	Share-based payment expense	499			556			878
	Other losses / (gains)	-			-			23
	Foreign exchange gain	-			12				-
	Tax paid		(175)		(139)			(22)
	Operating cash flows before movements in working capital	260				1,021		(3,250)
	(Increase)/decrease in receivables	6,318				786		1,821
	Increase/(decrease) in payables		(2,726)		(10,796)			(7,775)
	Net cash inflow / (outflow) from operating activities		3,852		(8,989)			(2,704)

 

14	Financial instruments
	The following table states the classification of financial instruments and is reconciled to the Statement of Financial Position:
				30 Jun 2023			30 Jun 2022			31 Dec 2022
				Carrying amount			Carrying amount			Carrying amount
				(unaudited)			(unaudited)			(audited)
				£'000			£'000			£'000
	Financial assets measured at amortised cost
	Trade and other receivables			10,181			5,846			9,273
	Cash and cash equivalents			24,126			20,693			19,624
	Financial liabilities measured at amortised cost
	Trade and other payables				(11,316)			(16,530)		(16,130)
	Other non-current liabilities				(2,519)			(222)			(2,806)
	Lease liability				(1,462)			(3,653)		(1,467)
	Financial liabilities measured at fair value through profit and loss
	Deferred consideration payable				(28,072)			(24,590)		(29,999)
					(9,060)			(18,456)		(21,505)
	Financial instruments not measured at fair value includes cash and cash equivalents, trade and other receivables, trade and other payables, and other non-current liabilities. Due to their short-term nature, the carrying value of cash and cash equivalents, trade and other receivables, and trade and other payables approximates fair value.
	Item	Fair value	Valuation technique				Fair value hierarchy level
		£'000
	Deferred consideration payable	28,072	Fair value of deferred consideration payable is estimated by discounting the future cash flows using the IRR inherent in the company's acquisition price.				Level 3

 

15	Related party transactions
	Remuneration of key management personnel
	The remuneration of the Directors, who are the key management personnel of the Group, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.
			Six months to		Six months to		Year ended
			30 June 2023		30 June 2022		31 Dec 2022
			(unaudited)		(unaudited)		(audited)
			2023		2022		2022
			£'000		£'000		£'000
	Salaries and other short-term employee benefits		665		103		678
	Other related parties
	During the period, KHL incurred fees of £50,000 (30 June 2022: £58,333; 31 December 2022: £116,000) from KPI (Nominees) Limited in relation to Non-Executive Director remuneration. At 30 June 2023, £nil of these fees remained unpaid (30 June 2022: £nil; 31 December 2022: £nil).
	Fees received from Moor Park Capital Partners LLP, in which Gary Wilder holds a beneficial interest, relating to property related services provided by KHL totalled £nil for the period ended 30 June 2023 (30 June 2022: £23,708; 31 December 2022: £23,708), of which £nil (30 June 2022: £nil; 31 December 2022: £nil) was outstanding at 30 June 2023.
	Fees paid for financial and due diligence services to Kingswood LLP, in which Gary Wilder and Jonathan Massing hold a beneficial interest, totalled £69,469 for the period to 30 June 2023 (30 June 2022: £420,807; 31 December 2022: £479,955), of which £nil (30 June 2022: £nil; 31 December 2022: £nil) was outstanding at 30 June 2023.
16	Ultimate controlling party
	As at the date of approving the financial statements, the ultimate controlling party of the Group was KPI (Nominees) Limited.
17	Events after the reporting date
	There were no significant events after the reporting period.

 

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