Trading Update and Notice of Final Results

RNS Number : 2093D

Mattioli Woods PLC

05 July 2016

 

5 July 2016

Mattioli Woods plc

("Mattioli Woods" or "the Group")

Trading Update and Notice of Final 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 final results for the year ended 31 May 2016, which are to be announced on Tuesday, 6 September 2016. 

Highlights

·      Strong growth, with revenues up over 20% on prior year

·      Total client assets up 22% to £6.6 billion at year end

·      Record number of new client wins

·      Maintaining target EBITDA margin

·      Recent acquisitions integrating well

·      Appointment of Non-Executive Director

·      Strong financial position, with net cash of over £29 million

·      UK referendum result expected to increase demand for advice

Ian Mattioli, Chief Executive, comments:

"I am pleased to report another year of growth in line with our expectations, with revenues up over 20% on the prior year despite unsettled markets.  We have enjoyed strong growth in our wealth management business, with the Government's new pension freedoms creating additional demand for advice.  The five businesses acquired during the year are integrating well and have all contributed positively to the Group's trading results since acquisition. 

"Further consolidation in the SIPP market appears likely, with increased regulatory capital requirements for SIPP operators coming into effect from 1 September 2016, and we continue to seek further value-enhancing acquisitions.  We were delighted to be one of only three operators to be awarded an 'A' rating in a recent report on the sustainability of the bespoke SIPP market. 

"Over the last 25 years, 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. 

"As in previous times of change, we expect a natural increase in the demand for high-quality financial advice.  Our proposition as adviser, product provider and asset manager positions us well to deal with the challenges of changing investment markets to secure better outcomes for our clients. 

"We have enjoyed strong organic growth, winning a record number of new wealth management cases during the year, comprising over 1,000 new SIPP, SSAS and personal clients with total assets under management, administration and advice of £359 million, up 51% on the prior year. 

"We have developed bespoke investment propositions, 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 product development, will help us deliver positive investment returns despite what are expected to be difficult mainstream markets. 

"We plan to launch a new structured product fund later this year, subject to receipt of regulatory approval, and have strengthened our client proposition with the launch of a new inheritance service, 'Progression', which will complement our existing estate planning provision. 

"Our subsidiary, Custodian Capital, is the discretionary investment manager of Custodian REIT plc, a closed-ended property investment company listed on the Main Market of the London Stock Exchange.  I anticipate the long-term secure income it offers investors will remain very attractive, given the likelihood that low interest rates will endure following the UK referendum. 

"Post referendum, Custodian REIT plc has maintained a premium to net asset value, offering both a high level of income dividend and a low correlation with the FTSE.  As manager, Custodian Capital charges annual management fees based on the net asset value of the investment company, with the Group's recurring revenues being enhanced as a result of Custodian REIT plc raising over £98 million (2015: £50 million) of new equity during the year. 

"I'm pleased with the investment performance delivered by both Custodian REIT plc and our core portfolio management service during the period, with the Group's discretionary assets under management increasing to over £1.1 billion at the year end. 

"The employee benefits market has adjusted following the abolition of provider commissions in April 2016 and I am delighted over 100 new corporate clients were attracted to the Group's broader range of employee benefits services during the year.  The need for advice from both corporates and their staff is likely to be enhanced following the UK referendum result, so I expect our Executive Financial Counselling and Financial Education initiatives will continue to gather pace. 

"We continue to invest in our bespoke pension administration and wealth management platform, with the first phase of a new customer relationship management system scheduled to 'go live' next month.  This is expected to realise operational efficiencies across the Group.  Although the development of our platform is taking longer than we initially anticipated, the expected development costs remain in line with our initial estimates. 

"In August 2015, we announced plans to build a new central Leicester office on the site of the former Leicester City Council headquarters at New Walk, Leicester.  We are in the process of agreeing the full and final specification with the developer and contractor, with construction to commence thereafter. 

"Following the retirement of the Group's senior Non-Executive Director, John Redpath, earlier this year, we were delighted to welcome Anne Gunther as a Non-Executive Director last month.  Anne's many years' experience in banking and private client asset management will be a great asset to the Group as we continue to grow and develop our business. 

"Our recent achievements have been recognised with a number of industry awards, including being awarded Best Wealth Management Adviser at the Money Marketing Awards 2016, as well as being highly commended as Best Investment Adviser. 

"Our focus is on ensuring we continue to address our clients' changing needs and our ambition is to see our brand become an even stronger force in the UK financial services sector.  I am delighted with the performance of our business in the 10 years since our admission to AIM and I believe Mattioli Woods' capabilities as adviser, provider and asset manager position us well to secure further profitable growth going forward." 

Notice of Final Results

Mattioli Woods will be announcing its final results for the year ended 31 May 2016 on Tuesday, 6 September 2016.  An analyst briefing given by Ian Mattioli, Chief Executive and Nathan Imlach, Finance Director will be held at 09:30 hrs on 6 September 2016 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 [phone] or at [e-mail]. 

- Ends -

For further information please contact:

Mattioli Woods plc
Ian Mattioli, Chief Executive	Tel: [phone]
[e-mail]	www.mattioliwoods.com
Nathan Imlach, Finance Director
[e-mail]

Canaccord Genuity Limited
Sunil Duggal	Tel: [phone]
Roger Lambert	www.canaccordgenuity.com
Kit Stephenson

Media enquiries:

Camarco
Ed Gascoigne-Pees	Tel: [phone]
	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 7,500 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 £6.6 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. 

 

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