AGM Statement

25 October 2018

Mattioli Woods plc

("Mattioli Woods" or "the Group")

AGM Statement

Mattioli Woods plc (AIM: MTW.L), the specialist wealth management and employee benefits business, will hold its Annual General Meeting at 10.00am today, at which the Group's Chairman, Joanne Lake, will make the following statement:

"In September, we were pleased to report the year ended 31 May 2018 had been another successful year of growth, with a strong flow of organic new business from individuals and corporates choosing to use the range of specialist services we provide, coupled with continued demand for advice from existing clients.

"We are proud of the strong shareholder returns we have delivered over many years and remain committed to growing the dividend, while maintaining an appropriate level of dividend cover. As previously announced, the Board is pleased to propose a 20.6% increase in the total dividend for the year at today's meeting.

"We have secured further revenue growth and operational efficiencies in the first four months of this financial year, and I believe the benefits of operating our integrated model will allow us to further reduce clients' total expense ratios ("TERs"), whilst realising new operational efficiencies and synergies. As reported by many participants in the UK wealth management sector, we have seen a lower level of client activity over the summer months, attributed primarily to poor investor sentiment and prolonged uncertainty over Brexit. However, the impact on revenue of this and reducing clients' TERs has been more than offset by resource and other administrative cost savings, resulting in EBITDA margin for the year to date tracking substantially ahead of target.

"In addition, the bespoke investment services the Group has developed enjoyed aggregate net inflows of over £100 million, in line with the strong results reported for the equivalent period last year. Unlike many wealth managers, the majority of our revenues are fee-based, rather than being linked to the value of assets under management, administration or advice.

"Growth in profit for the year to date includes the positive contribution from the Broughtons Financial Planning business acquired in August and the Group's associate company, Amati Global Investors, which has enjoyed further growth in the value of gross funds under management to over £350 million.

"We completed the move to our new Leicester premises earlier this month. This more flexible working environment will allow us to continue to grow the business and realise further operational efficiencies, whilst ensuring our client services continue to be first class. In addition, we will benefit from future rental savings of approximately £0.85 million per annum.

"Although there is some caution around markets, we believe the Group is well placed to continue to grow, both organically and by acquisition. Many commentators predict that next week's Budget will include changes to pension tax relief and we expect further changes in pension legislation, fresh speculation around the shape of Brexit and any further volatility in markets to drive a sustained demand for advice1.

"The inherent flex within our business model will allow us to adapt to meet the needs of our clients in what remains a changing marketplace, with a key part of our strategy being to lower the cost of the services we provide while growing a long-term sustainable business.

"We continue to invest in the Group as we look to build upon our success to date. Our profit outlook for the year is in line with management's expectations and I believe we remain very well-positioned to progress further towards the ambitious longer-term goals we have set."

 (1) Revenue for the year ended 31 May 2018 was split 58% fixed, initial or time-based fees and 42% ad valorem fees based on the value of assets under management, advice and administration.

- Ends -

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