(Alliance News) - Mattioli Woods PLC on Wednesday reported increased revenue in its latest financial year, with profit in line with expectations, and said it was confident it will "make meaningful progress towards our ambitious goals."
The Leicester, England-based wealth and asset management firm also announced the promotion of Michael Wright to deputy chief executive officer. Wright joined Mattioli Woods 19 years ago and was appointed as group managing director in 2019.
Mattioli Woods said revenue for the year ended May 31 was up 3% on the previous year with organic revenue growth of 4%. Market consensus forecasts revenue of GBP113.4 million; the company reported GBP108.2 million in revenue for financial 2022, up 73% from GBP62.6 million the year before.
"We enjoyed strong growth within our core pension consultancy and employee benefits business segments, with the changes to pension and tax rules announced in the Spring Budget driving further client demand for advice," commented Chief Executive Ian Mattioli.
The firm also said profit for financial 2023 was in line with expectations, with market consensus predicting GBP30.0 million in adjusted pretax profit and GBP33.0 million in adjusted earnings before interest, tax, depreciation and amortisation.
Mattioli Woods said its new business pipeline increased by 16% from the previous year, thanks to continued momentum in new client lead generation. It also said its previously acquired businesses, such as Maven Capital Partners LLP and Hurley Partners Ltd, were integrating well into its strategy with organic growth and revenue strategies.
The company did not include a dividend in its trading update, although financial 2022 showed a 32% increase in its final payout to 17.8 pence per share from 13.5p the year before.
Going forward, Mattioli said his company was looking to increase its advisor headcount as current macroeconomic conditions and "recent legislative changes" were likely to drive continued demand for these services. It also anticipates that positive market movements in the first half of the current year to boost its investment-related revenues.
Mattioli added that the firm has a "strong pipeline" of potential acquisition opportunities lined up, and that "Integration of acquired businesses and realisation of revenue synergies across the group remains a key area of focus."
"We are excited by the opportunity the group has to make meaningful progress towards our ambitious goals," he added. "Our trading outlook for the new financial year is focused on securing organic growth complemented by strategic acquisitions, with targeted investment to create capacity, improve operational efficiency and enhance our clients' experience.
"Whilst inflationary cost pressures and investment in our strategic initiatives may impact margins in the short term, we are confident that we will continue to deliver attractive, long-term sustainable shareholder returns."
Shares in Mattioli Woods were up 0.8% at 624.99 pence on Wednesday afternoon in London.
By Emma Curzon, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Mattioli Woods (MTW)