(Alliance News) - Mattioli Woods PLC on Tuesday announced revenue and profit growth in the financial year ended May 31.
The wealth management and employee benefits business's financial performance in the first nine months of the year was in line with the board's expectations, including the anticipated impact of Covid-19 on the final quarter ending May 31. This included a reduction in the group's income streams linked to the value of clients' assets and its banking revenue.
Mattioli Woods said total client assets stood at GBP9.3 billion at year-end. Gross discretionary assets under management were GBP2.6 billion, following net inflows during the recent financial year of GBP200 million.
The company said it will issue its full results on September 2.
As the virus crisis hit, Mattioli Woods implemented a number of cost cuts. These saved GBP150,000 through the reduction of all board directors' salaries and a further GBP2.7 million in the cancellation of remaining staff and director bonuses.
Chief Executive Ian Mattioli said: "Executive directors' salaries have been temporarily rebased from July 1 to create an annual saving of over GBP400,000, with close management of our fixed and discretionary spend expected to achieve further cost savings of GBP400,000 over the next 12 months.
"This has increased the number of options expected to vest under the company's long-term incentive plans and the associated non-cash share-based payments cost recognised in the year."
Mattioli Woods' profit for the year ended May 31 remained in line with the revised expectations made in the last trading update issued on June 1.
The acquisitions of Glasgow-based Turris Partnership Ltd in December, Belfast-based SSAS Solutions Ltd and Oldbury, England-based Broughtons Financial Planning Ltd, both acquired last year, are all integrating well and have contributed positively since their acquisitions, the company said.
The group expects to receive Financial Conduct Authority approval for the acquisition of London-based Hurley Partners within the next few weeks.
"The group is in a strong financial position and following the completion of the acquisition of Hurley Partners it will continue to have significant cash balances and headroom on its regulatory capital requirement," Mattioli said.
Mattioli Woods on Tuesday additionally announced some board changes. Finance Director Ravi Tara was promoted to chief financial officer, after Nathan Imlach decided to step down at the company's annual general meeting on October 19. Imlach will stay on with the business as chief strategic advisor.
Michael Wright and Iain McKenzie will be joining the board as group managing director and group operating officer, respectively.
All three new board appointments will be of immediate effect following their regulatory approval.
The company said it intends to appoint another independent non-executive director and is in discussion with potential candidates.
Mattioli Woods shares were down 1.7% at 703.00 pence each on Tuesday in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Mattioli Woods (MTW)