Last checked at 6 Jul 2021 07:00
| 6 July 2021 |
Mattioli Woods plc
("Mattioli Woods", "the Company" or "the Group")
Trading Update and Notice of Final Results
Mattioli Woods plc (AIM: MTW.L), the specialist wealth and asset management business, today issues the following trading update for the year ended 31 May 2021. The final results for the year are expected to be announced on Wednesday, 8 September 2021.
Highlights
· Revenue growth expected to be 7% year on year driven by increased inflows and performance of discretionary portfolio managed services · Profits in line with management's expectations |
· Significant increase in new business generation on prior year and improved lead generation of new clients |
· Continued to deliver uninterrupted service to clients throughout the year despite COVID-19 pandemic and successive lockdowns |
· Total client assets of the Group and its associate¹ of £12.0 billion at the year end |
· Gross discretionary assets under management² of £4.1 billion, with net inflows exceeding £480 million during the year |
· Recent bolt-on acquisitions performing and integrating well · Completion of £112 million fundraising to fund acquisitions of Maven Capital Partners and Ludlow Wealth Management and pipeline · Strong financial position and balance sheet, with £21.9 million of cash at 31 May 2021 · Post year-end completion of Maven Capital Partners acquisition · The Company's acquisitions expand the Group's platform to drive organic growth and contribute meaningful progress towards the Company's strategic goals from the current financial year onwards |
1. Includes £1,196.0m (2020: £515.8m) of funds under management by the Group's associate, Amati Global Investors Limited, excluding £94.9m (2020: £54.1m) of Mattioli Woods' client investment and £17.2m (2020: £11.5m) of cross-holdings between the TB Amati Smaller Companies Fund and the Amati AIM VCT. 2. Includes £1,308.1m (2020: £581.4m) of funds under management by the Group's associate, Amati Global Investors Limited, Mattioli Woods' client investment and cross-holdings between the TB Amati Smaller Companies Fund and Amati AIM VCT plc. |
Ian Mattioli, Chief Executive, comments:
"I am pleased to report revenue growth, despite the continued economic uncertainties that persisted throughout the period.
"The Group's financial performance in the second half of the year benefitted from an easing of some concerns relating to COVID-19, a Brexit trade deal amongst other factors, which resulted in increased investment activity, and which together with positive investment performance saw sustained and higher inflows into the Group's discretionary portfolio management services during a period of considerable market volatility.
"The Group saw a notable increase in the level of new business generated, through primarily virtual but also through traditional, face-to-face meetings when permitted. This combined with a stronger pipeline of new client leads provides opportunities for future organic revenue growth for the Group.
"In light of the prevailing market trading conditions, we continued to closely manage our cost base to protect our strong financial position, with positive contributions from recent bolt-on acquisitions contributing to an increase in adjusted EBITDA when excluding the impact of reinstating discretionary staff bonuses in FY21. As previously announced, management's actions taken in response to the COVID-19 pandemic resulted in a one-off increased EBITDA in the prior year.
"The Group's profit for the year ended 31 May 2021 remains in line with management's expectations and we continue to progress our strategic initiatives, through sustained investment in our people, technology and infrastructure including our partnership with the Tiller Group to develop a streamlined digital investment solution for our discretionary investment management service.
Completion of fundraise and growth from acquisitions
"The Group continues to grow both organically and through acquisition with notable progress being made this year following the acquisitions of the Exempt Property Unit Trust ("EPUT") administration business of BDO Northern Ireland, Montagu Limited, Pole Arnold Financial Management and Caledonia Asset Management which further build on the Mattioli Woods' long track record of successful acquisitions.
"The integration of each of the recent bolt-on acquisitions remains key to the delivery of earnings enhancement and we are pleased that the integration of each business to the Group is progressing well.
"In May 2021 we announced and subsequently completed our largest equity fundraise to date of £112 million to fund the acquisitions of Maven Capital Partners ("Maven"), which completed post year-end in June 2021, Ludlow Wealth Management Group ("Ludlow") which remains subject to FCA approval to complete, and a pipeline of smaller transactions. These acquisitions represent significant milestones in Mattioli Woods' journey.
"The acquisitions of Maven and Ludlow, the largest in the Group's history, in addition to the recently completed acquisitions represent meaningful progress towards our ambitious medium-term revenue, earnings and asset goals. These earnings enhancing transactions extend the Group's existing investment proposition to clients and add to our distribution capacity and scale. We have a strong track record of combining businesses that share the same culture and ethos of putting clients first and the Group remains well-positioned to deliver sustainable shareholder returns.
Outlook
"The Board remains positive about the Group's prospects. In the current financial year we have seen positive momentum continue to build, with greater client activity and increasing inflows into the bespoke investment services the Group has developed. We continue to expect the Group to secure organic revenue and profit growth in this new financial year, while progressing our acquisition and integration strategy and to remain focused on delivering great outcomes for our clients.
"We are well-positioned to progress further towards our medium-term goals. The Group is proud to mark its 30th anniversary this year and we continue to develop a business that is sustainable and here for the long term. Creating and preserving wealth, our focus remains on ensuring our trusted advice gives clients the understanding to achieve their objectives."
Notice of Final Results
Mattioli Woods will be announcing its final results for the year ended 31 May 2021 on Wednesday, 8 September 2021. Ian Mattioli, Chief Executive, Ravi Tara, Chief Financial Officer and Michael Wright, Group Managing Director will host an online analyst presentation at 09:30 hrs on 8 September 2021. Those analysts wishing to attend are asked to contact Ed Gascoigne-Pees at Camarco on +44 (0) 20 3757 4984 or at ed.gascoigne-pees@camarco.co.uk.
- Ends -
For further information please contact:
Mattioli Woods plc |
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Ian Mattioli MBE, Chief Executive Officer |
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Ravi Tara, Group Finance Director | Tel: +44 (0) 116 240 8700 | |
Michael Wright, Group Managing Director | www.mattioliwoods.com | |
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Canaccord Genuity Limited (Nominated Adviser and Joint Broker) |
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Emma Gabriel | Tel: +44 (0) 20 7523 8000 | |
Tom Diehl | www.canaccordgenuity.com | |
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Singer Capital Markets (Joint Broker) |
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Justin McKeegan |
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Tom Salvesen | Tel: +44 (0) 20 7496 3000 | |
Iqra Amin | www.singercm.com | |
Media enquiries:
Camarco |
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Ed Gascoigne-Pees | Tel: +44 (0) 20 3757 4984 |
Julia Tilley | www.camarco.co.uk |
Notes to editors
Mattioli Woods is one of the UK's leading and fastest growing providers of specialist pension, wealth and asset management and employee benefit services. Its core pension and wealth management offerings serve the higher end of the market including controlling directors and owner-managed businesses, professionals, executives, and affluent retirees. Its comprehensive range of employee benefit services is particularly suitable for medium-sized to larger corporates.
The Group's broader wealth management proposition has grown from its strong pensions advisory and administration expertise, with a client base of circa 11,000 self-invested personal pensions ("SIPP") and small self-administered pension schemes ("SSAS") throughout the UK. The Group's assets under management, administration and advice total £12.0 billion.
Mattioli Woods has a focus on holistic planning and providing the highest level of personal service, maintaining very close relationships with all its clients. The strength of its personal relationships has led to high levels of client satisfaction, retention and referrals. For more information, visit www.mattioliwoods.com.