ARP Ashcourt Rowan

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RNS Number : 9530C

Mattioli Woods PLC

23 April 2013

 
 23 April 2013 
 

Mattioli Woods plc

("Mattioli Woods" or "the Group")

Acquisition of pension administration business of Ashcourt Rowan plc

Mattioli Woods plc (AIM: MTW.L), the specialist pensions consultancy and wealth management business, is pleased to announce its subsidiary City Pensions Limited has acquired the pension administration business of Ashcourt Rowan plc ("Ashcourt Rowan") for a total cash consideration of up to GBP1.325 million, comprising an initial consideration of GBP700,000 (subject to adjustment for the value of working capital acquired) plus deferred consideration of up to GBP625,000 (subject to certain revenue and client retention targets being met during the five years following completion). The acquisition is being funded from the Group's existing cash resources and results in an initial cash outflow of GBP750,000, including deal costs.

The acquisition comprises the trade and certain assets of Ashcourt Rowan Administration Limited ("ARAL"), 100% of the share capital of Ashcourt Rowan Pension Trustees Limited and 100% of the share capital of Robinson Gear (Management Services) Limited (together "the Pension Business") from Ashcourt Rowan Holdings Limited, a wholly-owned subsidiary of Ashcourt Rowan.

Acquired by Ashcourt Rowan in 2006, the Pension Business provides trustee and administration services to over 600 self-invested personal pension ("SIPP") schemes and 150 small self-administered pension ("SSAS") schemes, with total funds under trusteeship of over GBP300 million.

In the year ended 31 March 2012, ARAL generated a profit after taxation of GBP134,535 on revenues of GBP674,285. The estimated liabilities being acquired are GBP115,168. The acquisition is expected to be earnings enhancing in the first full year of ownership, following the realisation of synergies and other benefits from combining the assets and activities of the Pension Business with those of Mattioli Woods.

Commenting on the acquisition, Ian Mattioli, Chief Executive of Mattioli Woods, said:

"Ashcourt Rowan has an excellent reputation for building first-rate client relationships. As financial markets change, there is real synergy in organisations like Ashcourt Rowan and Mattioli Woods entering into strategic partnerships to deliver better service and long term security for clients. We look forward to developing a strong relationship with Ashcourt Rowan and its advisers.

"With increasing complexity and continuing consolidation in the SIPP sector, we anticipate there will be further opportunities to expand Mattioli Woods' operations, both organically and by acquisition."

Jonathan Polin, Group Chief Executive of Ashcourt Rowan, commented:

"As Ashcourt Rowan continues to make significant strides across its business units it is important as a management team we focus on our core. The administration of SIPP and SSAS schemes is not core to our business. We have found a strategic partner with the expertise, scale and systems to give the very best service to our clients. Mattioli Woods is an organisation that is aligned with our values and has the same view of the broader wealth management market as we do. I look forward to working with the team over the coming years."

- Ends -

For further information please contact:

 
 Mattioli Woods plc 
 Bob Woods, Executive Chairman   Tel: +44 (0) 116 240 8700 
 bob.woods@mattioli-woods.com       www.mattioli-woods.com 
 
 
 Ian Mattioli, Chief Executive 
 ian.mattioli@mattioli-woods.com 
 
 
 Nathan Imlach, Finance Director 
 nathan.imlach@mattioli-woods.com 
 
 
 Canaccord Genuity Limited 
 Martin Green/Bruce Garrow, Corporate   Tel: +44 (0) 20 7523 8350 
  Finance 
                                         www.canaccordgenuity.com 
 

Media enquiries:

 
 FTI Consulting 
 Jack Hickey                     Tel: +44 (0) 20 7269 7196 
 jack.hickey@fticonsulting.com       www.fticonsulting.com 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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