TIDMMTW
RNS Number : 5061T
Mattioli Woods PLC
04 July 2018
4 July 2018
Mattioli Woods plc
("Mattioli Woods" or "the Group")
Trading Update and Notice of Final Results
Mattioli Woods plc (AIM: MTW.L), the specialist wealth
management and employee benefits business, today issues the
following trading update in advance of its final results for the
year ended 31 May 2018, which are to be announced on Tuesday, 4
September 2018.
Highlights
* Strong organic revenue growth of over 15%
* Total client assets([1]) increased to over GBP8.7
billion at the year end
* Gross discretionary assets under management(1) of
over GBP2.3 billion
* Maintaining EBITDA margin ahead of 20% target
* Recent acquisitions performing well
* Strong financial position, with net cash([2]) of over
GBP20 million
Ian Mattioli, Chief Executive, comments:
"I am delighted to report another year of strong and sustainable
growth, primarily driven by the flow of organic new business
generated by our maturing consultancy team with over 1,300 new
SIPP, SSAS and personal clients choosing Mattioli Woods during the
year. Total client assets under management, administration and
advice increased by 10% to over GBP8.7 billion at the year end.
"We continue to enjoy strong client retention and have seen
sustained demand for advice from clients, driven by lifestyle,
increasing longevity, tax and other legislative changes, including
the pension freedoms that introduced more flexibility as to how and
when people can access their pension savings.
"Last week the Financial Conduct Authority ("FCA") published
proposals in response to the findings of its Retirement Outcomes
Review ("ROR"), which are designed to help people think about their
drawdown choices earlier, create investment pathways to help them
with their choices and make costs and charges easier to understand,
including the possible introduction of a charge cap. Against the
backdrop of an evolving market I believe our advice-led model,
integrating administration and investment management, is aligned
with the regulator's proposals and makes us very well-positioned to
reduce client costs and deliver improved client outcomes, while
securing further profitable growth for shareholders.
"The ROR and the latest consultation are part of a wider package
of FCA activity covering the pensions and retirement income
sectors, including work on defined benefit ("DB") pension
transfers. We previously reported that the Group has ceased
providing advice on transfers from DB to defined contribution
pension schemes. Following consideration of the increasing costs of
professional indemnity insurance, additional regulatory controls
and the resources we would have to dedicate to a relatively small
part of our business we have decided to withdraw from this market
and look to vary our permissions with the FCA accordingly. The
impact of this decision on the Group's financial performance is not
expected to be material, with pension transfer advice to
individuals with safeguarded benefits contributing approximately
1.6% of direct revenues for the year, and less to profit given the
significant compliance costs associated with this activity.
"Strong inflows of new money combined with positive investment
performance to increase the Group's gross discretionary assets
under management to over GBP2.3 billion at the year end. The value
of assets held within our Discretionary Portfolio Management
service increased from GBP1.1 billion to GBP1.3 billion, of which
9% is invested within funds managed by the Group and its
associates. As our business grows, I expect the benefits of
operating our integrated model to enable us to further improve
client outcomes. We reduced the custody charge for all those
clients using our core investment platform with effect from 1
August 2017, which coincided with the launch of our new range of
multi asset funds designed to improve investment efficiency,
administration and reporting for clients.
"The Mattioli Woods' Structured Products Fund was named Retail
Investment Product of the Year at the Risk Awards 2018, with the
fund offering investors the benefits of collateralisation, instant
diversification, continuous availability and liquidity. A
combination of new client investment and money from maturing
structured product plans increased the fund's value to over GBP213
million at the year end.
"The total value of property and loans managed by our subsidiary
Custodian Capital increased to over GBP0.6 billion. In addition to
being the manager of Custodian REIT, the UK real estate investment
trust, Custodian Capital continues to facilitate direct property
ownership on behalf of pension schemes and private clients and also
manages our "Private Investors Club", which offers alternative
investment opportunities to suitable clients by way of private
investor syndicates.
"Recent acquisitions continue to perform well. Total revenue
growth includes a full year's contribution from the MC Trustees
pension administration business acquired in September 2016 and we
were delighted when Paul Jourdan of the Group's associate Amati
Global Investors ("Amati") was named best UK Smaller Companies Fund
Manager at the FE Alpha Manager of the Year Awards in May. Paul is
manager of the TB Amati UK Smaller Companies Fund, which won the UK
Smaller Companies category at the Investment Week Fund Manager of
the Year Awards last year. Amati has enjoyed strong growth in the
value of its funds under management, which increased from GBP176
million at the start of the year to over GBP325 million at the year
end.
"Acquisitions remain a core part of our growth strategy. We
continue to review a diverse pipeline of potential acquisition
opportunities and believe further consolidation within our core
markets remains likely. Our strong balance sheet gives us the
flexibility to make further value-enhancing acquisitions.
"Last month we were delighted to announce the appointment of
Saira Chambers to lead our employee benefits team as Employee
Benefits Director. Saira brings extensive experience across all
aspects of employee benefits, both as a consultant and in senior
leadership roles, and this blend of knowledge and experience will
enable us to transform this area of our business as part of our
long-terms plans.
"Investment in the Group's infrastructure continues as we
progress the implementation of our hosted IT architecture, which
offers enhanced data security, business continuity and scalability
for future growth. Our Manchester office moved to a new central
city location to accommodate our expanding team in May and the move
to our new central Leicester office is scheduled to commence in
September 2018. We have also agreed terms to move into a new
Edinburgh office, which will house both Mattioli Woods' consultants
and the Amati team.
"Strong growth in revenue has translated into strong growth in
EBITDA, with EBITDA margin for the year remaining slightly ahead of
our 20% target. I am delighted with the performance of our business
over the last financial year and I believe we are well-positioned
to progress further towards the ambitious longer-term goals we have
set."
Notice of Final Results
Mattioli Woods will be announcing its final results for the year
ended 31 May 2018 on Tuesday, 4 September 2018. An analyst briefing
given by Ian Mattioli, Chief Executive and Nathan Imlach, Chief
Financial Officer will be held at 09:30 hrs on 4 September 2018 at
Canaccord Genuity Limited, 88 Wood Street, London, EC2V 7QR.
Those analysts wishing to attend are asked to contact Ed
Gascoigne-Pees at Camarco on +44 (0) 20 3757 4984 or at
ed.gascoigne-pees@camarco.co.uk.
- Ends -
For further information please contact:
Mattioli Woods plc
Ian Mattioli MBE, Chief Executive Tel: +44 (0) 116 240 8700
ian.mattioli@mattioliwoods.com www.mattioliwoods.com
Nathan Imlach, Chief Financial
Officer
nathan.imlach@mattioliwoods.com
Canaccord Genuity Limited
Sunil Duggal, Investment Banking Tel: +44 (0) 20 7523 8000
Andrew Buchanan, Corporate Broking www.canaccordgenuity.com
Margarita Mitropoulou, Corporate
Broking
Media enquiries:
Camarco
Ed Gascoigne-Pees Tel: +44 (0) 20 3757 4984
www.camarco.com
Notes to editors
Mattioli Woods is one of the UK's leading and fastest growing
providers of specialist pension, wealth management and employee
benefit services. Its core pension and wealth management offering
serves the higher end of the market including controlling directors
and owner-managed businesses, professionals, executives, and
affluent retirees. Its comprehensive range of employee benefit
services is particularly suitable for medium-sized to larger
corporates.
The Group's broader wealth management proposition has grown from
its strong pensions advisory and administration expertise, with a
client base of over 10,000 self-invested personal pensions ("SIPP")
and small self-administered pension schemes ("SSAS") throughout the
UK. The Group's total assets under management, administration and
advice are in excess of GBP8.7 billion.
Mattioli Woods has a focus on holistic planning and providing
the highest level of personal service, maintaining very close
relationships with all its clients. The strength of its personal
relationships has led to high levels of client satisfaction,
retention and referrals.
For more information, visit www.mattioliwoods.com.
[1] Including over GBP325 million of funds under management by
the Group's associate company, Amati Global Investors.
[2] Excluding GBP3.5 million of VAT reclaimed on behalf of and
to be repaid to clients.
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Authority to act as a Primary Information Provider in the United
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contact rns@lseg.com or visit www.rns.com.
END
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