Mattioli Woods PLC Acquisition of Broughtons Financial Planning (2652X)
August 09 2018 - 1:00AM
UK Regulatory
TIDMMTW
RNS Number : 2652X
Mattioli Woods PLC
09 August 2018
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
9 August 2018
Mattioli Woods plc
("Mattioli Woods", "the Company" or "the Group")
Acquisition of Broughtons Financial Planning Limited
Mattioli Woods plc (AIM: MTW.L), the specialist wealth
management and employee benefits business, is pleased to announce
the acquisition of the entire issued share capital of Broughtons
Financial Planning Limited ("Broughtons") from its shareholder
("the Seller") for a total consideration of up to GBP4.0
million.
Broughtons was founded in 2001 and provides wealth management
advice and administration for 250 individual clients with over
GBP120 million of assets under advice. Based in Oldbury in the West
Midlands, the business specialises in the provision of financial
planning advice. Broughtons' experienced management team will be
retained by Mattioli Woods following the acquisition, which is
expected to be earnings enhancing in the first full year of
ownership.
In the year ended 31 July 2017, Broughtons generated a profit
before taxation of GBP0.62 million on revenues of GBP0.99 million.
At 31 July 2017 Broughtons' net assets were GBP0.56 million.
The total consideration comprises:
-- An initial consideration of GBP2.7 million (subject to
adjustment for the value of net assets acquired), comprising GBP2.1
million in cash plus 77,171 new ordinary shares of 1 pence each in
Mattioli Woods ("the Consideration Shares"), which are valued at
GBP0.60 million based on the closing price of a Mattioli Woods
share on 8 August 2018; and
-- Deferred consideration of up to GBP1.3 million payable in
cash in the two years following completion, subject to certain
financial targets being met based on growth in earnings before
interest, tax, depreciation and amortisation generated during that
period.
Payment of the initial cash consideration, deal costs and
estimated net asset adjustment resulted in a cash outflow at
completion of GBP2.2 million.
Application has been made to AIM for the admission of the
Consideration Shares to trading ("Admission"). Admission of the
Consideration Shares, which will rank parri passu in all respects
with Mattioli Woods' existing shares in issue, is expected to
become effective on 15 August 2018.
Following the issue of the Consideration Shares, the total
number of ordinary shares of 1p each ("the Ordinary Shares") in the
Company with voting rights will be 26,276,770. Mattioli Woods does
not hold any Ordinary Shares in Treasury.
The above figure of 26,276,770 Ordinary Shares may be used by
shareholders in the Company as the denominator for the calculations
by which they will determine if they are required to notify their
interest in, or a change to their interest in, the share capital of
the Company under the Financial Conduct Authority's Disclosure and
Transparency Rules.
The Seller has entered into a lock-in deed with Mattioli Woods
and its nominated adviser and broker, Canaccord Genuity Limited,
restricting sales of the Consideration Shares during the two years
following completion.
Commenting on the acquisition, Ian Mattioli, Chief Executive
Officer of Mattioli Woods, said:
"Broughtons has a similar culture to Mattioli Woods and holds
high values with the client being at the core of all it does. The
combined business gives us all opportunities to grow and develop
the client offering and we welcome Gary and his team. Long term
stability and sustainability is key to growing a modern financial
services group and we will all continue to strive to achieve
this".
Gary Bond, Broughtons' Managing Director, added:
"From our initial discussions with Mattioli Woods it was clear
that we shared the same values and business culture. We are all
excited by the opportunity this gives us as we work to create a
great financial services business and to be part of a large group
which has clients at its core".
- Ends -
For further information please contact:
Mattioli Woods plc
Ian Mattioli MBE, Chief Executive
Officer
Nathan Imlach, Chief Financial Tel: +44 (0) 116 240 8700
Officer
www.mattioliwoods.com
Canaccord Genuity Limited
Sunil Duggal Tel: +44 (0) 20 7523 8000
David Tyrrell www.canaccordgenuity.com
Media enquiries:
Camarco
Ed Gascoigne-Pees Tel: +44 (0) 20 3757 4984
www.camarco.com
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END
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