Trading Statement

RNS Number : 9109X

Mattioli Woods PLC

01 July 2008

 

Press Release

1 July 2008

Mattioli Woods plc

('Mattioli Woods' or 'the Group')

Trading Update

Mattioli Woods plc (AIM: MTW.L), the specialist pensions consultancy, today issues the following trading update in advance of its final results for the year ended 31 May 2008, which are to be announced on Tuesday, 2 September 2008.  

Ian Mattioli, Chief Executive, comments:

'I am pleased to report another year of strong growth. I am also delighted to report that earnings are in line with market expectations, with the two businesses acquired during the period having been successfully integrated into our operations.  

Against the backdrop of unsettled markets, our performance over the last 12 months has demonstrated the resilience of our fee-based revenue model and long-term approach to investment planning.  Total funds under trusteeship have increased from £818.8 million last year to £1.5 billion at 31 May 2008.  

Organic growth in the number of self-invested personal pensions ('SIPP') and small self-administered schemes ('SSAS') we provide with bespoke consultancy and administration services was 18.3% and 6.3% respectively.  Following the acquisitions of Pension Consulting Limited and the JB Group, the total number of core schemes has increased from 1,603 at the start of the year to 2,446 at 31 May 2008.  

We have a good track record in developing client relationships, which has been confirmed again by our strong client retention throughout the period.  

  Our clients' response to current investment conditions has been broadly neutral, with most benefitting from low equity exposure.  In the wake of the 'credit crunch', we have seen a decline in our clients' appetite for traditional equity-based investments.  However, a key feature of our business is how clients' funds are retained within the pension scheme. Regardless of the investment cycle we are able to offer strategies consistent with market conditions.  

During the year, we issued five capital-guaranteed bonds, with clients' subscribing a total of £14.7 million (2007: £7.4 million).  We also facilitated £23.0 million of syndicated property investment on our clients' behalf (2007: £19.1 million).  I anticipate we will see heightened demand for these and similar products.  

Our headcount has increased to a total of 147 staff (2007: 100) and we have leased additional premises adjacent to our head office to accommodate this expansion. Maintaining capacity is essential in an environment of growing demand and we continue to invest in our graduate recruitment programme.  Building a scalable technology platform also remains a key objective for the Group and we continue to develop our bespoke pension administration system 'MWeb'.  

In part, our success is linked to strong growth in the SIPP sector.  Some commentators are forecasting the market will exceed 400,000 schemes by December 2008, compared to an estimated 150,000 SIPP holders prior to the pension reforms of April 2006.  I expect the latest changes in legislation, to allow the self-investment of protected rights monies into SIPPs from October this year, will only add to this momentum. This will undoubtedly create further demand for more broadly-based and impartial advice, which Mattioli Woods is very well-placed to provide.'

- Ends -

For further information please contact:

Mattioli Woods plc
Bob Woods, Executive Chairman	Tel: [phone]
[e-mail]	www.mattioli-woods.com

Ian Mattioli, Chief Executive	Tel: [phone]
[e-mail]	www.mattioli-woods.com

Nathan Imlach, Finance Director	Tel: [phone]
[e-mail]	www.mattioli-woods.com

Evolution Securities Limited
Joanne Lake, Corporate Finance	Tel: [phone]
[e-mail]	www.evosecurities.com

Media enquiries:

Abchurch
Sarah Hollins / Nick Probert	Tel: [phone]
[e-mail]	www.abchurch-group.com

 

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