JOHNSTON Financial is on the verge of completing a two-year management buyout that will see founder and chairman Adrian Johnston sell his remaining 27 per cent stake in the business.

The firm says the move will help accelerate a period of ambitious growth aimed at doubling the size of the business.

The company has been operating in Edinburgh since 1987 and has more than £420 million of assets under management.

Mr Johnston’s shares will be bought by business partner John McArdle, who became managing director in May 2018 and will now own 90% of the company.

Another director, Suzanne Gray, will own the remaining 10% stake.

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The new management structure has ushered in a new era for the firm, it said, with plans in place to reach £1bn of assets under management within five years.

Mr McArdle said it is a “very successful business and as a result, a well-known name in the financial sector”. He said:“Adrian started the business from one room in an office in Northumberland Street back in the 1980s.

"We are still in Northumberland Street today, but now have 2,000 active clients, a turnover of more than £2m a year and occupy three floors of the same building."

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He said: “It’s testament to his vision and talent that the company has built not only such deep and loyal client base, but also a strong and talented 18-strong team. All of this gives us the perfect platform to evolve and grow even further.

"After such an impressive career, it was only right that we made sure succession was also going to be as smooth and seamless as possible. Indeed, we’ve been speaking with our clients about this for many years to prepare them.

“What’s most pleasing is that this allows Adrian to keep an active role in the company as he winds down until retirement.”

Mr McArdle, who joined the business in 1997 as a financial planner, rose through the ranks, to become a 50-50 shareholder with Mr Johnston. He said the buyout deal was funded from retained profits.