The UK division of consolidator Kingswood reported an 80% increase in operating profit to £11m last year, according to its latest trading statement.

It said the UK division performed strongly "reflecting rapid growth in the business". Earlier this month it confirmed it was in talks about the potential sale of the UK business.

UK revenue stood at about £33.8m, up 54% year on-year. The statement added that 87% of the UK operation's revenue was recurring "providing a strong, annuity-style fee stream".

The firm explained that the rise in operating profit was driven by its acquisitions and was underpinned by "careful cost management". It completed ten buyouts in the UK last year, adding £1.7bn in assets under administration, 28 advisers and £11.8m revenue to the group. It added that £6.0m incremental revenue would be forthcoming in 2023.

This year the consolidator has added Barry Fleming Partners and Irish firm Moloney Investments to its books.

The statement added that the acquisition of IBOSS had "driven increased flows into Kingswood investment solutions"

In October 2022, Kingswood entered into a debt facility with a global financial institution to provide initial funding of £50m with the ability to increase the commitment to £150m to fund its strategic growth plan.

The US business report revenues of about £110m, a decrease of 14% year-on-year.

Kingswood chief executive David Lawrence (pictured) said: "I am delighted that our business continues to make progress across the group with organic growth and positive net asset flows complemented by ongoing acquisition activity. It is understandable that capital markets activity softened in the US in 2022 as a result of market conditions, with this division of our business delivering lower operating profit contribution in the year.

"However, the strategy and trajectory of the business continues as planned. Our recent entry into the Irish market is a further demonstration of Kingswood's progress and commitment to our future growth. We expect to announce further acquisitions later in 2023."