Trading Update and Notice of Interim Results

RNS Number : 2404U

Mattioli Woods PLC

29 November 2013

 

29 November 2013

Mattioli Woods plc

("Mattioli Woods" or "the Group")

Trading Update and Notice of Interim Results

Mattioli Woods plc (AIM: MTW.L), the wealth management and employee benefits specialist, today issues the following trading update in advance of its interim results for the six months ending 30 November 2013, which are to be announced on Tuesday, 28 January 2014. 

Highlights

·      Strong revenue growth of over 20% year-on-year

·      Recurring revenues represent over 75% (1H13: 64%)

·      Discretionary AuM of £0.5bn

·      Atkinson Bolton acquisition bedding-in well

·      Investment in infrastructure and technology ·      Continuing to assess acquisition opportunities

Ian Mattioli, Chief Executive, comments:

"It is almost a year since the Financial Conduct Authority ("FCA") introduced the Retail Distribution Review ("RDR"), heralding a period of unprecedented change in our key markets.  Against this backdrop, I am pleased to report strong revenue growth in the first five months of this financial year.  Current trading is in line with the Board's expectations and we remain confident in our outlook for the remainder of the year. 

"The RDR has changed the revenue mix in our wealth management business, with a shift away from provider commissions to ongoing adviser and discretionary management charges, increasing our recurring revenues. 

"Our employee benefits business faces a period of similar change.  The introduction of RDR was followed by the withdrawal of consultancy charging in May.  The Office of Fair Trading's subsequent review of Workplace Pensions in July has led to the Department of Work and Pensions consulting on capping charges and legacy commissions in defined contribution schemes.  Inevitably, there is uncertainty around what the impact of all these changes will be.  We expect a shift in employee benefits revenues away from up-front commissions, which may reduce revenues in the short term, but lead to higher recurring revenues going forward.  We also anticipate our employee benefits business will have less reliance on pensions, diversifying revenues through the sale of "Create", our flexible benefits technology, and the development of our holistic employee benefits proposition. 

"I am excited about the opportunities we have.  Employers are looking for streamlined solutions and we will shortly launch a new product to assist with auto-enrolment.  We are well placed to service corporate clients across the UK. 

"We are building capacity in our consultancy and technical teams, enabling us to take advantage of the new business opportunity.  We have seen an increase in the number of new direct¹ SSAS and SIPP schemes won in the year to date, with an average new scheme value of £0.30m (1H13: £0.40m).  As anticipated, the associated growth in pension consultancy and administration fees has been partially offset by a fall in banking revenues, due to lower LIBOR rates. 

¹ SSAS and SIPP schemes where Mattioli Woods acts as pension consultant and administrator

"The FCA's rules aimed at limiting the promotion of Unregulated Collective Investment Schemes ("UCIS") take effect from 1 January 2014.  While we support the regulator's desire to restrict the promotion of UCIS to more strictly defined "sophisticated investors", property is an important asset class that a large number of our clients access through our property syndicate initiative.  Following the completion of one new syndicate in June, we have not completed any further syndicates while we consider adopting an alternative structure to deliver our property investment initiative to the wider market.  This has resulted in lower syndicate revenues than in the prior year. 

"In our final results for the year ended 31 May 2013, I highlighted our expectation that we would see continued pressure to reduce clients' total expense ratios.  We continue to invest in the Group's infrastructure and technology with the aim of delivering more efficient client service. 

"Our most recent acquisition, Atkinson Bolton Consulting Limited, is bedding-in well.  Our post-acquisition integration has included a review of the legal and operational structure of the Group, with the aim of strengthening our brand around the Mattioli Woods name from 1 June next year.  Linking the Group's legal and operational structures is a key to ensuring we can capitalise on the opportunities to secure further growth. 

"We continue to assess a number of acquisition opportunities across all our service lines.  Our strategy is to continue growing organically and by acquisition.  I am delighted with the performance of our business in what remains a fast-changing market and I look forward to us delivering further sustainable growth over the remainder of this year." 

Notice of Interim Results

Mattioli Woods will be announcing its interim results for the six months ending 30 November 2013 on Tuesday, 28 January 2014.  An analyst briefing given by Bob Woods, Executive Chairman and Nathan Imlach, Finance Director will be held at 09:30 hrs on 28 January 2014 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	Tel: [phone]
Bruce Garrow	www.canaccordgenuity.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 services, with a client base of over 5,700 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 £4.0 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.mattioli-woods.com. 

 

END

 

 

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