Last checked at 9 Jan 2017 07:00
| 9 January 2017 |
Mattioli Woods plc
("Mattioli Woods" or "the Group")
Trading Update and Notice of Interim Results
Mattioli Woods plc (AIM: MTW.L), the specialist wealth management and employee benefits business, today issues the following trading update in advance of its interim results for the six months ended 30 November 2016, which are to be announced on Tuesday, 7 February 2017.
Highlights
· Strong growth, with revenues up over 20% on prior year |
· Total client assets at period end of over £7.5 billion |
· Maintaining target EBITDA margin |
· Recent acquisitions performing and integrating well |
· Strong financial position, with net cash of over £22 million |
· Acquisition of MC Trustees in September 2016 |
· New Manchester office opened in November 2016 |
· Appointments of Chief Investment Officer and Head of Risk Management and Compliance |
· Over £47 million now invested in new Structured Products Fund |
Ian Mattioli, Chief Executive, comments:
"I am delighted to report the six months ended 30 November 2016 represented another period of strong organic growth, driven by an expected increase in the demand for advice and a strong flow of new business, which together with acquisitions completed in this and the prior financial years increased revenues by over 20% on the equivalent period last year.
"Acquisitions continue to be a core part of our growth strategy, with the five businesses acquired in the prior year integrating well, increasing earnings and enhancing value. In September 2016 we were pleased to announce the acquisition of MC Trustees, which is an excellent fit with our existing pension business and has contributed positively to the Group's trading results since acquisition.
"We believe further consolidation within our core markets remains likely and our strong balance sheet gives us the flexibility to make further value-enhancing acquisitions.
"There were some significant economic and political events in the first half of this financial year. We have shown in good and bad economic conditions that we have a robust business model, which can deliver additional shareholder value through organic growth, the development of new revenue streams and the acquisition of similar or complementary businesses.
"We have seen strong demand for the bespoke investment propositions we have developed, including our Private Investors Club, structured product and property investment initiatives, which all have the benefit of low correlation with mainstream equity and bond markets. I believe these initiatives, in conjunction with further development of our advisory services and investment products, will help us deliver positive investment returns in what are likely to remain complex investment markets.
"The Mattioli Woods Structured Products Fund has generated significant client interest, with over £47 million now invested following its launch in November 2016. The fund has been designed around our core objective of delivering sustainable long-term returns to clients, while lowering their costs.
"Our subsidiary Custodian Capital now manages over £375 million of property investment. Custodian Capital is the discretionary investment manager of Custodian REIT plc, a Main Market-listed property investment company, and continues to facilitate direct property ownership on behalf of pension schemes and private clients. Custodian Capital also manages the Private Investors Club, which offers alternative investment opportunities to suitable clients by way of private investor syndicates. This initiative continues to be well supported, with £13.6m (1H16: £5.6m) invested in the four (1H16: three) new syndicates completed during the period.
"With continued growth in our investment and asset management business, and to support our growth ambitions, we have strengthened our senior management team through the appointments of Simon Gibson as the Group's Chief Investment Officer and Gareth Green as Head of Risk Management and Compliance. Simon is a well-respected fund manager with over 30 years' investing experience, while Gareth brings more than 20 years' experience of compliance, internal audit and operations assurance roles within the financial services sector.
"The employee benefits market has adjusted following the abolition of provider commissions in April 2016 and we continue to seek opportunities to enhance our revenues from pension and non-pension related areas. At a time when the employee benefits market is going through extensive transition, we are growing our consultancy team to capitalise on the opportunities we believe the Government's emphasis on workplace advice presents for us to realise further synergies with our wealth management business.
"Investment in our bespoke pension administration and wealth management platform continues in line with expected spend, with the first phase of our new customer relationship management system going live in September 2016. This is expected to realise operational efficiencies and enable further integration across the Group.
"As an Investors in People company we are committed to developing our people and building the capacity to deliver sustainable growth. Recent expansion has seen us move into larger premises in London and open a new office in Manchester, strengthening Mattioli Woods' position in the North West following the acquisition of Preston-based financial advisory firm Taylor Paterson last year.
"Construction of our new central Leicester office, which will provide our staff with a modern working environment and capacity for further growth, remains scheduled to complete around the end of this calendar year.
"Bob Woods and I are very proud to have been recognised through the award of MBEs in the Queen's New Year's Honours list. What Mattioli Woods has achieved over its 25 history is the result of a fantastic team effort in which all our people have played a part.
"Our focus is on ensuring the Group continues to address our clients' changing needs and our ambition is to become an even stronger force in the UK financial services sector. As part of our strategy to promote the Group we announced a three-year deal with rugby giants Leicester Tigers in July 2016, giving national coverage and strengthening our brand awareness.
"I believe Mattioli Woods' capabilities as adviser, provider and asset manager allow us to deliver improved and sustainable client outcomes, enabling the Group to secure further profitable growth."
Notice of Interim Results
Mattioli Woods will be announcing its interim results for the six months ended 30 November 2016 on Tuesday, 7 February 2017. An analyst briefing given by Ian Mattioli, Chief Executive and Nathan Imlach, Chief Financial Officer will be held at 09:30 hrs on 7 February 2017 at Canaccord Genuity Limited, 88 Wood Street, London, EC2V 7QR.
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 |
|
Ian Mattioli MBE, Chief Executive | Tel: +44 (0) 116 240 8700 |
ian.mattioli@mattioliwoods.com | www.mattioliwoods.com |
Nathan Imlach, Chief Financial Officer |
|
nathan.imlach@mattioliwoods.com |
|
Canaccord Genuity Limited |
|
Sunil Duggal, Investment Banking | Tel: +44 (0) 20 7523 8000 |
Andrew Buchanan, Corporate Broking | www.canaccordgenuity.com |
Kit Stephenson, Corporate Broking |
|
Media enquiries:
Camarco |
|
Ed Gascoigne-Pees | Tel: +44 (0) 20 3757 4984 |
| www.camarco.com |
Notes to editors
Mattioli Woods is one of the UK's leading and fastest growing providers of specialist pension, wealth management and employee benefit services. Its core pension and wealth management offering serves 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 over 9,500 self-invested personal pensions ("SIPP") and small self-administered pension schemes ("SSAS") throughout the UK. The Group's total assets under management, administration and advice are in excess of £7.5 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.