Millfield Group unveiled a huge restructuring of the intermediary firm this morning along with massi...
Millfield Group unveiled a huge restructuring of the intermediary firm this morning along with massive investment from financial services firms in a bid to boost its business position post CP121.
A new share offering worth £16m was announced to finance the establishment of a new division and the stepped acquisition of 20 IFA firms.
However, the bulk of that share offering - worth £11.2m - has already been placed with Aegon, Friends Provident, Norwich Union, Scottish Widows and Skandia, to help acquire small advisory companies.
Paul Tebbit, ceo of the Millfield Group, says the providers have no say in the way the firm is run, nor is there any agreement or quota of business, and they will be able to sell their shares in the IFA group at any time.
A further £4.8m open offer of shares has also been placed through stockbroker Collins Stewart to existing shareholders on a 1-for-15 basis in order to finance the creation of a joint venture with AM Corporation and AM Financial Pty - Australia's largest pensions/administration firm with £3bn in assets under management - to build a personal portfolio services business.
Results released this morning revealed Millfield's turnover in the year to March almost doubled to £21m. The new share transactions amount to 22% of existing equity, at 136p a share, which is the same price at which the shares closed yesterday. Millfield stock was first offered to investors at 118p a share when the four-year old firm floated on AIM in March 2001.
The share price remained steady today despite the results also showing a pre-tax loss of £7.4m, compared with a loss of £258,000 a year earlier. Administrative costs are said to have quadrupled to £13.8m.
Shares in the company this morning rose 3p, or 2.2%, to 139p, but have fallen 4.1% this year.
£92bn transferred since 2015
Achievements, charity work and other happy snippets
Since first announcement