George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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The leaderboard .....lovely start for MTW and KAV both having great RNS this morning.....lovely start to Friday paternostpauper....nice indeed
Relatively happy too Pater but MTW is possibly undervalued even at the offer price given markets have performed poorly. In a booming .market they would have much higher funds under management. That said the premium is decent but I hope another bidder is flushed out now we are in play. Only started buying a year ago so I wish I had more but did reasonably well.
Happy with that. 34% premium plus keep the divi.
Nice start to a Friday!
New research report available here: https://www.equitydevelopment.co.uk/research/h1-24-showcases-benefit-of-diverse-income-streams
H1-24 revenue (to 30 Nov 23) was up 8% y-o-y to £59.1m (H1-23: £54.9m), with 4% organic revenue growth. H2 revenue is typically higher than H1 due to end of tax-year advice and H2 bias of client year-ends, and we maintain our FY24 revenue forecast of £123.6m (+11% y-o-y). Adjusted EBITDA grew 10% from £15.0m to £16.5m with positive effects from organic growth (409 new clients, +13% over H1 23) and a changing revenue mix towards higher-yielding services.
The core pensions business was the standout performer with 21% revenue growth, driven by strong demand for advice and increased banking margin on cash balances.
MW has a strong net cash position of £32.7m, after paying £9.3m of dividends and £6.2m of acquisition-related payments. MW has no debt. Management maintains a confident outlook, with the interim dividend up from 8.8p to 9.0p.
Our revenue forecasts are unchanged with adjusted EBITDA forecasts down slightly due to lower Amati profits but statutory profits increase on higher net finance income. Our fundamental valuation remains unchanged at 900p per share (53% above the current share price). With powerful longer-term structural tailwinds supporting the wealth management sector (see page 16), we think a sector-median PER of 15.7 is too low. Moreover, with MW being so well positioned (page 17), we find it strange it’s PER of 12.3 is below this median. We see potential for a re-rating.
New research report here: https://www.equitydevelopment.co.uk/research/on-track-for-10-annual-revenue-profit-growth
H1’24 revenue (to 30 Nov 23) totalled £59.1m, 8% up y-o-y (H1’23: £54.9m), with 4% organic revenue growth. H2 revenue is typically higher than H1 due to end of tax-year advice and H2 weighting of client year-ends, and we maintain our FY24 revenue forecast of £123.6m (+11% y-o-y).
MTW remains in a strong net cash position (£32.7m v £45.0m on 31 May 23), giving scope to pursue opportunities. Cash is as expected with c. £9.3m paid in dividends and some tranche-payments of previous acquisitions made. We expect cash to exceed £40m by year-end.
As in FY23, MTW has reported growth within the core pension consultancy and employee benefits business segments, with the proposed changes to pension and tax rules announced in the Chancellor’s recent Autumn Statement driving strong demand for advice.
Our sector PER analysis suggests potential for a rerating of both the sector and Mattioli Woods, where our fundamental valuation remains 900p / share, 50% above the current price.
Mattioli Woods plc (AIM: MTW.L), the specialist Wealth and Asset Management business, conducted an investor presentation by Webinar after their final results for the year ended 31st May 2023.
Ian Mattioli, MBE (Chief Executive Officer), Ravi Tara (Chief Financial Officer) and Michael Wright (Deputy CEO) ran investors through the purpose of Mattioli Woods and a review of financial period highlights - which included an increase in Assets Under Management and revenue, as well high ongoing levels of cash generation. Management discussed their organic growth initiatives, their integrated model and strategic plan, before answering a wide range of questions from viewers.
The full video has been divided into chapters as below:
0:00:00 Beginning & Agenda
0:00:29 Purpose (Ian Mattioli, CEO)
0:13:29 Highlights & Financial Overview (Ravi Tara, CFO)
0:28:22 Market opportunity, strategic plan, capacity for growth (Michael Wright, Deputy CEO)
0:49:57 Investment Case & Conclusion
0:54:49 Questions & Answers
Full video presentation: https://www.equitydevelopment.co.uk/research/mattioli-woods-investor-presentation-fy-results-september-2023
Mattioli Woods plc (AIM: MTW.L), the specialist wealth and asset management business, will be conducted an investor presentation with Q&A covering their final results for the year ended 31st May 2023.
The online presentation will take place on Friday 15th September at 12.30pm UK time, and will be hosted by Michael Wright (Deputy CEO) and Ravi Tara (CFO).
This event is open to all existing and potential shareholders and registration is free. Questions can be submitted during the presentation and will be addressed at the end of it.
https://www.equitydevelopment.co.uk/news-and-events/mattioliwoods-fyresultspresentation-15sept2023
Trading update from Mattioli Woods of FY23 profits in line and healthy pipeline. Equity Development publish new research showing PER of 13 is 20% below a peer group median of 16.2 and calculate a fundamental valuation of 900p that is 45% above the last close.
Read full new note / hear summary here:
https://www.equitydevelopment.co.uk/research/fy23-profits-in-line-pipeline-strong
Mattioli Woods (MW) has acquired 50.1% of White Mortgages Limited (White) with an option to purchase the remaining 49.9% within 24 months. White is based in Lincoln and specialises in providing independent mortgage advice as well as protection insurance advice. In the year to 31 Mar 23 it generated revenues of £0.68m and PBT of £0.35m. White looks like a good fit: MW’s existing advice proposition is extended by adding a new in-house mortgages capability, and the White business is well-positioned to benefit from being fed more business from MW’s large adviser-base.
It looks like a low-risk deal for MW which has paid £0.425m on a cash-free debt-free basis for its first-tranche 50.1% stake of White (a pre-tax PER of just 2.4X). The second tranche of the deal for the remaining 49.9%, if exercised, will be for a consideration of up to £2.625m, dependent on the attainment of specified targets being met. We would expect the deal to be earnings enhancing and therefore, if the second tranche is exercised with a performance-linked payment in place, we would foresee the full deal PER as being less than 8.7x, an attractive proposition for MW shareholders.
We remind readers that acquisitive growth is a core part of MW’s strategy. It has a long track record of success with 34 acquisitions (excluding White) since its admission to AIM in 2005.
Link here: https://www.equitydevelopment.co.uk/research/acquisition-engine-spinning-smoothly
Doherty is a leading player in N Ireland and its purchase adds £635m of AUA and c 1,320 private clients to MTW. Equity Dev analysts expect the deal to be value accretive and have a Fair Value of 950p/share.
You can read/hear their new note with free access here:
https://www.equitydevelopment.co.uk/research/new-acquisition-adds-scale-looks-value-accretive
After robust interims(despite challenging markets)and a confident Management outlook, Equity Development keeps its fundamental valuation at 950p per share (over 50% above current price)
As you can read in detailed new research note + audio summary here (free access):
https://www.equitydevelopment.co.uk/research/solid-h1-interim-dividend-6-implies-confidence
Link to note (free & accessible):
https://www.equitydevelopment.co.uk/research/on-track-to-meet-forecasts-positive-outlook
Mattioli Woods (MW) has reported H1-23 revenue (to 30 Nov 22) of £54.9m, 10% up y-o-y (H1-22: £49.9m), with organic revenue growth of over 2%, despite a challenging environment. It remains in a strong financial position, with net cash totalling £38.3m at the end of the period.
Total client assets closed H1 on £14.6bn, a 3.2% y-o-y fall from £15.1bn on 30 Nov 21, but a creditable performance considering the PIMFA Private Investor Balanced Index (net) fell 3.8% over the same period. Gross discretionary AUM totalled £4.9bn, 4% down y-o-y (30 Nov 21: £5.1bn) but pleasingly, positive net inflows of £38.1m was achieved (+0.8% of opening AUM).
MW has highlighted several factors that suggest confidence in the H2 outlook, which remains in line with previous expectations:
- as in previous years, H2 revenue expected to exceed H1 due to end of tax-year advice and second half weighting of client year-ends;
- value of new clients on-boarded in H1 over 10% up y-o-y;
- increased new business pipeline despite market conditions, solid acquisition pipeline;
- all recent acquisitions integrating well, trading in-line or ahead of budget, and have delivered earnings to support full payment of any contingent consideration;
- joint-fundraising between MW and Maven (acquired Jun 21) continued to gain traction with two recent Investor-Partner deals;
- discretionary managed funds performed in line with benchmarks;
- digital client experience enhanced with launch of MWise online investment platform;
- Amati AIM VCT won VCT AIM Quoted Category at Investment Week's Investment Company of the Year Awards 2022.
MW remains on track to meet our forecasts for FY23 and our fundamental valuation of 925p which is 47% above the current share price, remains unchanged. We have updated our peer-comparison valuation which also suggests potential for a re-rerating. MW’s PER of 13.0 is 29% below a wealth management peer group median of 18.2.
Update says further new client growth in the first 4 months of FY23, but market falls reduced its AUM.
Equity Dev adjusts forecasts and trims Fair Value to 925p/share from 950p – vs 595p last close.
Read/hear summary of new note here (free access):
https://www.equitydevelopment.co.uk/research/client-growth-pipeline-solid-markets-peg-back-forecasts
"Impressive start to next leg of growth journey"
Mattioli Woods is an AIM-listed wealth and investment management business which operates throughout the value chain. It has a team of 185 client-facing consultants which gives it control over distribution; it operates its own administrative platform which allows it to capture operational economies of scale; and it has a differentiated suite of investment products giving consultants an advantage over competitors.
The group has a record of achieving ambitious goals. In 2014, with client assets of £4.5bn and revenue of £29m, it set medium-term goals of £15bn of client assets and £100m of revenue. It hit those in FY22 and is now targeting £30bn of AUM, £300m in revenue, and £100m in EBITDA.
FY22 (to 31 May 22) has seen an impressive start to this journey. Client assets grew by 23% from £12.1bn to £14.9bn, revenue 73% from £62.6m to £108.2m, and adjusted EBITDA 88.4% from £17.3m to £32.6m. The balance sheet is strong, with net assets of £230m, cash and equivalents of £54m, and no debt. A dividend of 26.1p has been proposed, producing a yield of 4.0%.
It also has the potential to exceed our forecasts. Operating in a huge market with substantial tailwinds, the business model provides significant competitive advantages, and it has a long track record of finding and executing value accretive acquisitions.
For valuation we apply a DCF methodology with what we believe are conservative assumptions, and note that the PER of 13.7 is only at the peer group median level - despite its growth prospects.
Our fundamental valuation is 950p per share, which is 44% above the current share price.
Link to full research report with audio summary: https://www.equitydevelopment.co.uk/research/impressive-start-to-next-leg-of-growth-journey
Why is there no RNS mentioning that MW are closing their £200m structured products fund then????
Looks a decent deal in a booming sector. I reckon they will have easily raised the cash and I see £10 here so I put in for some from primary bid. This is what a placing is intended for.
Chunky acquisitions considering no staff bonuses last year ‘because of Covid’. The £100m must be debt financing?
Does anyone have recent experience of their services?
up through the 150 and 200 day EMA's
Harry Nimmo: How I beat rivals in 2015 and my share tips for next year The star fund manager returned to form in 2015 delivering a 26pc profit so far. He offers stock ideas for 2016 By Kyle Caldwell8:04AM GMT 26 Dec 2015 http://www.telegraph.co.uk/finance/personalfinance/investing/shares/12066854/Harry-Nimmo-How-I-beat-rivals-in-2015-and-my-share-tips-for-next-year.html
Solid Results...
looking at the chat boards only doing well out of this company are the directors cos folks i know arnt happy
another court case did they win ? what was it about charges, guess so
Recd today in papers....should do well this week imho.