We are pleased to share our consolidated annual results for the 2017 performance year.
Watch the video for insight into our strategy and key financial highlights. Alternatively, download the full report here.
The Embark Group now consists of six trading subsidiaries, each supported by a common shared services subsidiary. The business has been under a period of transition from its origins as a Full SIPP and SSAS Administrator, to a leading provider of digitally executed retirement services ranging from savings wrap through investment research to actuarial consulting.
Across the year each pension subsidiary has reported solid organic growth, productivity improvements, client service gains, and reductions in their relative risk environments. The continued drive to use its digital platform technologies has aided improvement to underlying cost of operations, and this, coupled with the provision of central support services, has enabled the attainment of material operating costs synergies year on year. This has enabled material investment to be focused on the Embark Platform business, through which the Group entered the platform market in late 2017.
As in previous years, Embark were very active inorganically during 2017. This centered around the acquisition of EBS Pensions from Charles Stanley & Co, entering into a new joint venture partnership with Mazars under the brand ‘Vested’, and the disposal of its chartered financial planning arm, ‘RCL’ to Mazars.
This has resulted in the following as at 31 December 2017:
- Assets Under Administration increasing 42% to £11.5bn
- Revenues increasing 59% to £29.2m
- Net Organic scheme client growth of 10,542
- Client Numbers increasing 31% to 114k
- Net profitability improving 48%, reducing prior year investment led losses to £1.6m
This performance assisted a 33% increase in the balance sheet (net assets) of the Group year on year, and a regulatory capital coverage ratio of >140%, further supporting the AKG Financial Strength Rating of B (Strong) attained in 2018 for Embark Group as a whole. Trading for 2018 continues to show similar progression, with strong underlying client growth and profit performance year to date. Embark continues to assess multiple acquisition opportunities available in the sector, but will only operate inorganically for transformative deals of high quality.
The business is well placed to consider an initial public offering (IPO) of its equity in the medium term.
David Etherington, Group Chairman, commented;
“2017 saw the end of phase 1 of our project, transforming our foundation acquisition from a small, paper based administration business, to being part of a large, digitally led, and multi-channel retirement savings specialist. Seeing Embark go from concept to scale inside five years is something we are very proud of.”
Phil Smith, Group Chief Executive, commented;
“Our financial results are now beginning to show both the pace at which we are building Embark, and the underlying enterprise value we are creating in a sector which remains both ripe for change, and fast growing. We have excellent people, excellent partnerships, and a solid foundation for the next five years of accelerated growth.”