23 January 2017 – exercise of IFA acquisition option
On 25 November 2016 the company announced that its subsidiary Edgewater Associates Limited (EWA), the Isle of Man’s largest independent financial advisor, had entered into an Option Agreement with Knox Financial Services Limited (KFSL) to acquire the remaining IFA book of contracts held by KFSL. The option included the right to acquire approximately 100 clients with 200 managed contracts, generating an anticipated renewal income of up to £0.2m. The terms were for a payment of £75k at exercise and a further four times the actual renewal income less £75k, payable one year after completion date. On 18 January 2017 EWA exercised the Option Agreement, subject to the approval of its Regulator, the Isle of Man Financial Services Authority. Edgewater’s two transactions with the Knox Group of Companies together will add a further 4,100 clients with an anticipated renewal income in excess of £0.5m to its portfolio. The shares remain a BUY.