Trading Update and Notice of Interim Results

RNS Number : 8451K

Mattioli Woods PLC

07 January 2021

 

7 January 2021

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 2020, which are to be announced on Tuesday, 9 February 2021. 

Highlights

· Key milestone achieved, with total client assets of the Group and its associate[1] in excess of £10 billion at the period end

· Further growth in profitability, with improved margins following actions taken in response to COVID-19 and continued cost management

· Gross discretionary assets under management[2] of £2.9 billion

· Strong financial position, with £18 million of cash at period end

· Establishment of new executive team and governance structure

· Hurley Partners acquisition completed in July 2020 is integrating and performing well

· Sustained focus on M&A with strong pipeline of opportunities

· Profit outlook for current year remains in line with management's expectations

· Post period end non-executive appointments further strengthens board

Ian Mattioli MBE , Chief Executive, comments:

"The first six months of this financial year saw a continuation of the economic and political uncertainty that was a feature for most of 2020.  Throughout the period we proactively balanced securing good financial outcomes for our clients with ensuring the long-term sustainability of our business, remaining true to our purpose of putting clients first, which has been consistent throughout our 30 years of trading, and I am pleased to report further progress towards our ambitious medium term goals with total client assets now exceeding £10.6 billion.

"As anticipated, revenue was slightly lower than in the equivalent period last year due to the adverse impact of weaker financial markets and the suspension of certain statutory requirements for pension schemes resulting in lower fee-based revenues.  However, continued cost management and the positive contribution of Hurley Partners for part of the period more than offset the impact of reduced revenues on adjusted EBITDA[3]. 

"Our focus remains on our clients' well-being and the preservation of their wealth.  Clients quite rightly remain cautious of the prevailing economic and investment conditions, which reduced activity in the first half.  We recognise that a significant number of our clients continue to be impacted by the challenging economic conditions and remain sympathetic to their needs.  Accordingly, we have resolved to maintain our previously announced position not to alter any of our fee structures or implement any fee increases for the remainder of this financial year. 

"With a post-Brexit agreement on trade and other issues, coupled with anticipated changes to the personal tax regime in the first half of the 2021 calendar year, conditions are favourable for an increase in investment activity and demand for advice in the second half of this financial year. 

"Our managed funds continue to perform well and represent a combined value of £2.9 billion, including more than £700 million at the Group's associate company, Amati Global Investors. This team gained further recognition having been named Boutique Manager of the Year at Investment Week's Specialist Investment Awards in November 2020. 

"The early, decisive actions taken to protect our clients and staff through the pandemic have ensured our business remains fully operational whilst the majority of our employees continue to work remotely.  This, combined with the active management of fixed and discretionary costs, enabled us to achieve further cost savings and margin improvement in the first half, while restoring interim bonus payments to the majority of our employees.

"We continue to progress our strategic initiatives, including the development of our bespoke MWeb platform and digital client interface.  In July 2020, we were pleased to announce the completion of our acquisition of Hurley Partners, which is integrating well and contributing positively to our Group results.  The acquisition of Hurley Partners, and The Turris Partnership in the prior financial year, further build on our long track record of successful acquisitions. We remain committed to our culture of putting clients first and to delivering our ambitious growth plans for the business".

"We believe that consolidation across our key markets will continue and we continue to assess and progress those opportunities that meet our strict criteria. We have shown that we have a robust business model in both good and bad economic conditions, which can deliver additional shareholder value through organic growth from the development of existing and new client relationships; and the acquisition of similar or complementary businesses. 

"Having further strengthened our executive and senior management teams during the first half, we plan to build on the progress already achieved over the remainder of this financial year.  Our level of new business enquiries has increased both in volume and average value compared to the same period last year, and we have successfully adopted new ways of working in response to the pandemic.  We anticipate greater client activity and increasing inflows into our bespoke investment services in the second half of this year.

"The recent appointments of David Kiddie, Edward Knapp and Martin Reason to our Board as independent Non-Executive Directors further strengthens our board and brings additional expertise as we continue to execute against our growth strategy.

"Our profit outlook for the year remains in line with management's expectations and we remain well-positioned to deliver sustainable shareholder returns." 

Notice of Interim Results

Mattioli Woods will be announcing its interim results for the six months ended 30 November 2020 on Tuesday, 9 February 2021. 

Ian Mattioli, Chief Executive, Ravi Tara, Group Finance Director, and Michael Wright, Group Managing Director, will host an online analyst presentation at 09:30 hours on 9 February 2021.  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 MBE, Chief Executive Officer	Tel: [phone]
Ravi Tara, Group Finance Director Michael Wright, Group Managing Director	www.mattioliwoods.com
Canaccord Genuity Limited (Nominated Advisor and Joint Broker)
Emma Gabriel		Tel: [phone]
Tom Diehl		www.canaccordgenuity.com
N+1 Singer (Joint Broker)
Justin McKeegan, Corporate Finance	Tel: [phone]
Pete Steel, Corporate Finance	www.n1singer.com
Tom Salvesen, Corporate Broking

Media enquiries:

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

Notes to editors

Mattioli Woods is one of the UK's leading providers of specialist pension, wealth management and employee benefit services.  Its core proposition integrates asset management and financial planning to serve 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 11,000 self-invested personal pensions ("SIPP") and small self-administered pension schemes ("SSAS") throughout the UK.  The Group's assets under management, administration and advice total over £10.6 billion. 

Mattioli Woods has a focus on holistic planning and providing the highest level of personal service, maintaining close relationships with 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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[1]   Includes £688.4m (31 May 2020: £515.8m) of funds under management by the Group's associate, Amati Global Investors Limited, excluding £59.6m (31 May 2020: £54.1m) of Mattioli Woods' client investment and £13.5m (31 May 2020: £11.5m) of cross-holdings between the TB Amati Smaller Companies Fund and the Amati AIM VCT plc. 

[2]   Includes £761.5m (31 May 2020: £581.4m) of funds under management by Amati Global Investors Limited, including Mattioli Woods' client investment and cross-holdings between TB Amati Smaller Companies Fund and Amati AIM VCT plc.

[3]   Earnings before interest, taxation, depreciation, amortisation, impairment, changes in valuation of derivative financial instruments and acquisition-related costs, including share of profit from associates (net of tax). 

 

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