Trading Update and Notice of Interim Results

RNS Number : 4002Y

Mattioli Woods PLC

01 December 2014

 



1 December 2014

Mattioli Woods plc

("Mattioli Woods" or "the Group")

Trading Update and Notice of Interim 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 interim results for the six months ended 30 November 2014, which are to be announced on Tuesday, 27 January 2015. 

Highlights

·      Strong revenue growth of over 20% on prior period

·      Maintaining target margin

·      Total client assets now exceed £4.90bn (1H14: £4.32bn)

·      Discretionary AuM increased to £0.84bn (1H14: £0.51bn)

·      £80m of new monies raised for Custodian REIT since March 2014

·      Acquisitions continue to bed-in well

·      Well positioned for growth going forward

Ian Mattioli, Chief Executive, comments:

"I am pleased to report further strong revenue growth in the first five months of this financial year, as we benefit from the momentum of strong organic and acquired growth, set against the backdrop of an attractive market place for our core services.  Current trading is in line with the Board's expectations and we remain confident in the outlook for the remainder of the year. 

"These are exciting times for our clients and ourselves, with the Government finally seeing the benefit of offering individuals and their families control of their pension funds, both now and into the next generation.  The freedom to access pension funds from age 55 and removal of the 55% tax-charge on death provides a real sense of ownership, and paves the way for the inheritance of pension funds by the next and future generations. 

"Self-administered and self-invested pensions have always provided our clients with control over their pension fund assets.  For many years we have lobbied hard on the issues of "ownership" and inheritance, working to give our clients as much flexibility as possible over their assets.  We are delighted these key issues have finally been addressed and I cannot overstate just how profound I believe these changes will be in repositioning pensions at the centre of retirement planning. 

"The continued development of our consultancy team is driving increased new business flows.  In the first five months of the period we have won new wealth management cases (comprising SIPP, SSAS and personal clients) with total assets under management, administration and advice of over £128m, a significant increase on the total assets of £86m won in the six months ended 30 November 2013. 

"In our employee benefits division, as anticipated, the forthcoming introduction of a charge cap on auto-enrolment pension schemes in April 2015 and the abolition of provider commissions in April 2016 are changing the revenue mix while the market adjusts to accommodate these Government-led initiatives.  The shift to a fee-based proposition is being well-received by corporate clients and I expect our blend of employee benefits and wealth management to see us win new clients attracted to the broader and more flexible solutions we can offer employers and their employees.  

"Our subsidiary, Custodian Capital Limited, is the discretionary investment manager of Custodian REIT plc ("Custodian REIT"), a closed-ended property investment company listed on the Main Market of the London Stock Exchange.  As manager, Custodian Capital receives annual management charges based on the net asset value of the investment company, enhancing the Group's recurring revenues.  Custodian REIT is our first venture into external fund management, with the £80m of new money raised since the fund's launch in March 2014 being a great testament to our business model. 

"The integration of acquired businesses continues apace.  Our most recent acquisition, the pension business of UK Wealth Management ("UKWM"), is bedding-in well and the hive-up of City Pensions Limited into Mattioli Woods was completed on 31 October 2014.  Integrating around one brand and one vision enables the Group to deliver holistic solutions across our wide and diverse client base. 

"Developing our technology infrastructure is a key part of our strategy.  We are investing in our bespoke pension administration and wealth management platform, with the aim of enhancing the services we offer clients and realising operational efficiencies across the Group as a whole. 

"Our aim is to grow organically and by acquisition, and we continue to assess a number of acquisition opportunities.  I am delighted with the performance of our business in what remains a fast-changing market and I believe the Group is very well positioned to secure further profitable growth going forward." 

Notice of Interim Results

Mattioli Woods will be announcing its interim results for the six months ended 30 November 2014 on Tuesday, 27 January 2015.  An analyst briefing given by Bob Woods, Executive Chairman, Ian Mattioli, Chief Executive and Nathan Imlach, Finance Director will be held at 09:30 hrs on 27 January 2015 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
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

Media enquiries:

Camarco
Ed Gascoigne-Pees	Tel: [phone]
	www.camarco.co.uk

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 6,300 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 £4.9 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. 

 

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