Revenue grew by a third to £10m at Kingswood Holdings for the year ending 31 December 2019 but mounting administrative costs, amortisation and depreciation saw the firm's total losses reach £5.7m.
The losses come despite a year filled with acquisitions at the firm, including Oxfordshire financial advisory firm Thomas & Co Financial Services, Sheffield financial planner WFI Financial LLP and, as of 24 June, the North East-serving IFA, Sterling Trust, with a further three transactions "currently under exclusive due diligence".
Sterling Trust brings a further 48 employees to the firm, 22 of whom are financial advisers with £1.2bn asset under management and advice (AUMA) from over 5,000 clients.
2019 also saw the firm agree a partnership with Pollen Street Capital, which provided up to £80m by way of issuing irredeemable convertible preference shares, allowing Kingswood to fund its "significant acquisition pipeline".
At time of publication, Kingswood oversaw £4.8bn of AUM across 16,000 active clients, of which £2.9bn AUM and 11,700 clients were serviced by the firm's UK Wealth and Investment Management arm.
The firm had a total net equity of £30.6m and no debt, but with the losses incurred shareholders lost 3p per share and no dividend was issued.
Gary Wilder, group CEO at Kingswood, said: "Looking back, 2019 was a milestone year for Kingswood. The major commitment of up to £80m growth capital by a global investor such as Pollen Street Capital was a strong affirmation of the vision and strategy set by the board at the beginning of the year.
"Kingswood is significantly undervalued relative to its fully integrated peer group and wealth managers in general, and a major focus of myself and the board is to execute our strategy and maximise value and returns for our shareholders."
Patrick Goulding, group CFO at Kingswood, added: "2019 saw significant investment in people and technology to reposition the business for growth. We now move forward with an aligned and expanded senior management team combining large firm experience and strong track records of success.
"Our financial strategy is underpinned by a robust and disciplined balance sheet, ensuring no deferred liabilities from acquisition activities remain uncovered from a funding perspective."