Trading Update and Notice of Final Results

RNS Number : 3136G

Mattioli Woods PLC

28 June 2012

 



28 June 2012

Mattioli Woods plc

("Mattioli Woods" or "the Group")

Trading Update and Notice of Final Results

Mattioli Woods plc (AIM: MTW.L), the specialist pensions consultancy and wealth management business, today issues the following trading update in advance of its final results for the financial year ended 31 May 2012, which are to be announced on Wednesday, 29 August 2012. 

Highlights

·      Another year of profitable growth 1

·      Increased investment-related revenues in second half

·      Recent appointment to operate The Pilgrim SIPP

·      Planned launch of discretionary portfolio management in August

·      Kudos integration progressing ahead of expectations

·      Further investment in IT and client facing services

·      Well positioned for growth going forward

Bob Woods, Executive Chairman, comments:

"As anticipated in our interim results statement, the delivery of proactive advice on the repositioning of clients' retirement and investment strategies led to a significant increase in investment-related revenues in the second half.  Recent acquisitions are bedding-in well and contributed positively to another year of profitable growth for the Group, in line with management's expectations. 

"Our passion for, and conviction in, proactive advice and high service standards, delivered with personal care and impartiality has again proven to be a resilient model against the backdrop of uncertainty caused by the Eurozone crisis.  In the first half of the financial year, keeping clients informed and recommending the maintenance of defensive positions generated strong goodwill with existing and prospective clients. 

^{1 Growth in adjusted profit before tax, before acquisition costs expensed under IFRS3 (Revised), amortisation and impairment of intangible assets other than computer software}

"I believe the Group is well-positioned to enjoy stronger growth going forward.  Mattioli Woods won 310 new direct ² SSAS and SIPP schemes during the year, up 25.0% on the prior year, with an average new scheme size of over £0.37 million.  We continue to enjoy strong client retention, although higher losses on acquired portfolios resulted in a net 2.7% increase in the number of direct schemes administered at the year-end.  The Group's total assets under administration and advice had increased to £3.02 billion at the year-end, up 31.3% on the prior year, with our latest acquisition, Kudos, winning a number of significant new employee benefit mandates during the period. 

"Our reputation for technical excellence has served us well, which was reinforced by Bank of Scotland plc's recent appointment of City Pensions Limited to operate The Pilgrim SIPP, with total scheme assets of circa £140 million.  I expect the operation of this scheme to make a positive contribution to our results for the current financial year. 

"It is pleasing that our investment strategies have proved to be resilient in such difficult market conditions.  We continue to enjoy strong demand for both our syndicated property and structured product investment initiatives.  During the year, clients invested in six new property partnerships, with a total value of £10.1 million and structured products with a total value of £32.2 million.  I am particularly excited that following the rebranding of the business last autumn, we are seeing an acceleration of new wealth management enquiries. 

"There is much focus currently on the impact of the FSA's retail distribution review ("RDR"), which is scheduled to take effect from 1 January 2013.  However, I anticipate interest rates remaining at a historic low and weak investment returns will be an even more powerful driver for change, as investors focus increasingly on total expense ratios and attempt to seek-out best value. 

"As recently announced, we have received permission from the Financial Services Authority to provide discretionary portfolio management, which we will launch with clients in August.  I expect this service to enhance our recurring revenue streams, while providing a more efficient investment process for our clients. 

"I believe we are well-placed to compete in the post-RDR world and will make further investment in our information technology and client facing services to ensure we can take advantage of new opportunities as they arise.  I am confident we retain good momentum in our business and can build upon our record of growth going forward."

^{2 SIPP and SSAS schemes where Mattioli Woods acts as pension consultant and administrator.} 

Notice of Final Results

Mattioli Woods will be announcing its final results for the year ended 31 May 2012 on Wednesday, 29 August 2012. 

An analyst briefing given by Bob Woods, Executive Chairman and Nathan Imlach, Finance Director will be held at 09:30 hrs on 29 August 2012 at FTI Consulting, Holborn Gate, 26 Southampton Buildings, London, WC2A 1PB. 

Those analysts wishing to attend are asked to contact Jack Hickey at FTI Consulting on [phone] or at [e-mail].

- 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
[e-mail]
Nathan Imlach, Finance Director
[e-mail]

Canaccord Genuity Limited
Martin Green, Corporate Finance	Tel: [phone]
[e-mail]	www.canaccordgenuity.com
Bruce Garrow, Corporate Finance
[e-mail]

Notes to editors

Mattioli Woods is one of the UK's leading and fastest growing providers of specialist pension consultancy and wealth management.  Its core services and advice are targeted towards the higher end of the market including controlling directors, professionals, owner-managed businesses and small to medium-sized PLCs. 

The Group is focused on the application and administration of self-invested personal pensions ("SIPPs"), small self-administered pension schemes ("SSASs"), personal investment and estate planning.  Through Mattioli Woods and its subsidiary City Trustees Limited, a provider of bespoke pension administration, the Group now advises over 4,000 pension fund clients throughout the UK with assets under advice and administration in excess of £3.0 billion.  For corporate clients we provide a comprehensive range of employee benefits services.

Mattioli Woods has a focus on providing the highest level of personal advice, 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.  Mattioli Woods provides clients with the following:

·     Pensions and investment consultancy

·     Personal wealth management

·     Bespoke pension scheme administration and trusteeship, particularly for SIPP, SSAS and Group schemes

·     In-house investment research and broking

·     Property syndication, through Custodian Capital Limited

·     A range of employee benefits services, through Kudos IFS Limited

·     Structuring of investment products tailored to a particular client's needs

·     Assistance and advice with securing preferential banking arrangements

For more information, please visit www.mattioli-woods.com, www.custodiancapital.com, www.citytrustees.co.uk and www.kifs.co.uk. 

 

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