Mattioli Woods proposes final dividend as new year starts well

(Sharecast News) - Specialist wealth management and employee benefits business Mattioli Woods said on Monday that its new financial year had started positively, as it on-boarded the same number of clients in the first four months as it did at the same time last year.
The AIM-traded firm, which was holding its annual general meeting, did end the year to 31 May with a financial result and adjusted EBITDA margin "significantly ahead" of budget.

Chairman Joanne Lake said the client numbers were "pleasing", given the "very different" circumstances the company was experiencing.

"Market stability has shown signs of improving, despite the ongoing political and macro-economic uncertainty, with net inflows into the group's investment and asset management services at the same level as the equivalent period last year."

Lake said the board was committed to growing the dividend, while maintaining an appropriate level of dividend cover, but said the board still believed it was prudent to protect the firm's financial position, and balance the interests of all stakeholders.

As a result, the directors were proposing a final dividend of 12.7p per share, down from 13.67p year-on-year, making for a proposed total dividend for the year of 20p per share, in line with the prior year.

"We recognise the huge effort of our people and their contribution to delivering these results.

"In line with our desire to balance the interests of all stakeholders, we have recently paid interim bonuses in respect of the current financial year to all staff, other than senior executives and directors."

Lake also noted that, after 15 years as chief financial officer, Nathan Imlach was standing down from the board to continue as chief strategic adviser to the group, where his focus would be on its strategic direction and acquisitions.

"Nathan has been instrumental to the success of the group and we are delighted that we will continue to benefit from his experience and insight in this new role."

Also, as the board had previously announced, Ravi Tara, Michael Wright and Iain McKenzie were set to join the board immediately following regulatory approval of their appointments, with Imlach to continue to support the board during the period until approvals were received.

"The board also intends to appoint additional non-executive directors, and the group is in discussion with potential candidates."

Joanne Lake said that, despite the continued caution around markets, there remained a "significant opportunity" for Mattioli Woods as people were seeking to "take charge" of their money, review their financial arrangements and manage that "through the generations".

"Our personalised approach, transparent fee structure and desire to build long-term relationships with our customer's leave us well placed for the future.

"Consequently, we remain positive about the group's growth prospects given our resilient operating model and all the actions we have taken to reinforce our financial position."

The company expected that uncertainty around Brexit and the impact of Covid-19 would continue to influence investor and consumer sentiment in the short-term, Lake said, although the board was confident that the firm's ability to address the changing needs of clients would position it to secure future growth, both organically and through further strategic acquisitions, to deliver sustainable shareholder returns.

"Current trading is in line with management's expectations and we remain focused on client service, responsibly integrating asset management and financial planning to build upon our established reputation for delivering sound advice and consistent investment performance ."

At 0802 BST, shares in Mattioli Woods were up 0.69% at 657p.