Fairstone achieves 32% growth in revenue and exceeds £17bn of Funds Under Management

Fairstone Group has published its latest annual report, highlighting a year of significant growth, with a 32% year-on-year increase in revenue and pro forma fee income reaching £154m in the last quarter of 2023.

This marks another year of strong performance for the Group, which has now exceeded £17 billion in Funds Under Management and achieved strong growth across all key areas, including client numbers, recurring income, gross margin, and profit.

The report highlights Fairstone’s continued success amid turbulent market conditions. This is attributable to the firm’s 94% of recurring income.

CEO Lee Hartley said:

“Our continued growth stands us in good stead for the implementation of the next phase of our strategy. While there remains some turbulence in the broader market, we are committed to delivering exceptional value, outcomes, and service to our clients.”

The report outlines an updated strategic approach for Fairstone, focused on five key areas to drive the business forward. Central to this is a focus on strengthening the core operations enhancing advisory services and investing in technology to improve operational efficiency and client experience.

Speaking on the firm’s updated strategic approach, Lee Hartley, Chief Executive said:

“Looking forward, we have laid the foundation for a new chapter that will carry us into the next decade, ensuring that Fairstone not only adapts to the current market but thrives in it. By focusing on five key areas, we will solidify our position as a leader in wealth management, while maintaining the high standards that our clients expect.”

A key element of this strategy is the expansion of Fairstone’s Mineral service, a remote advisory platform designed for clients with less complex financial needs.

Hartley continued:

“To complement our core business, our Mineral service is evolving. As an advisory channel tailored for clients with straightforward financial needs, Mineral offers simplified, remote-based advice at a lower cost. This solution not only meets current demands but ensures we maintain important intergenerational connections within our client base.”

In addition to developing Mineral, Fairstone has continued its expansion into Ireland and has advanced its “hub” strategy. The latter of which aims to create operational centres within an hour’s reach of 95% of the population in the areas it serves. Over the past 18 months, Fairstone has launched new hubs in Farnborough, the North West, and the North East of England. This decentralised approach will enable faster decision-making, closer proximity to regional markets and more progression opportunities for its 1,250 people.

Hartley emphasised the importance of this decentralised approach, stating:

“Our hub strategy will play a crucial role in our ongoing ability to scale. Over time, each hub will evolve into a fully equipped operational centre, mirroring our head office, and allowing us to bring key functions closer to local teams. This decentralised approach will enable faster decision-making, a closer proximity to regional markets and more progression opportunities for our people, creating a more agile and responsive organisation.”

Hartley concluded:

“As we implement our new strategy, we are reinforcing our appetite to build a stronger, more agile and more client-centric organisation. By placing a greater emphasis on operational efficiency as well as outright growth, we are confident our expanded strategy will allow us to reach £40bn in client assets by the end of 2030.”

David Hickey, Chairman of Fairstone, added:

“As we continue to grow, we will maintain our culture of fairness and trust in every client interaction. We believe that by nurturing these values, Fairstone will not only adapt to current market challenges but thrive in the years ahead.”

Download our Annual Report 2023 contact our M&A team about joining Fairstone