Trading Update and Notice of

RNS Number : 2072V

Mattioli Woods PLC

07 July 2009

 



Press Release

7 July 2009

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, today issues the following trading update in advance of its Final Results for the year ended 31 May 2009, which are to be announced on Tuesday, 8 September 2009.  

Bob Woods, Executive Chairman, comments:

'I am pleased to report the Group has achieved strong turnover growth and trading in line with market expectations for the year ended 31 May 2009.  This has again demonstrated the resilience of our time-costed, advice-led business model.  

'The last six months have been a challenging period for many people contemplating how to fund and manage their retirement. Accordingly, we have focused our efforts on advising existing clients as proactively as possible. The cornerstone of this initiative was a series of client seminars held across the UK. This was very well attended and warmly received, with most clients being complimentary about the effectiveness of our retirement wealth investment strategies.  

'I have highlighted before how our mix of investment-related revenues adjusts as we take account of changes in economic conditions and the underlying needs of our clients.  This flexibility was illustrated in the second half of the financial year, with the adverse impact on our banking-related revenues of the Bank of England base rate falling to historic lows being offset by increased revenues from client investment in structured products and cash funds offering the prospect of higher yields.  

'Our financial performance during the period reinforces my view that the business can continue to achieve its growth objectives despite difficult economic circumstances.  We continue to enhance our trading platforms and I am confident this is the right time for us to push ahead on all fronts.  

'Whilst the consultancy team has focused on existing clients' financial affairs following the unprecedented downturn in global markets, I am delighted we have continued to attract new clients during the period.  We have introduced a wide range of new marketing initiatives, which will be added to over the coming financial year.  As a result, I expect to see stronger organic growth over the next 12 months and hence building capacity remains a high priority.  The business has come a long way since it floated in November 2005.  We are now focused on putting in place a platform that will deliver our personalised, advice-led services to a much larger client-base over the long-term. 

'The Financial Services Authority ('FSA') published a detailed consultation paper on 25 June setting out draft rules for how the retail investment industry will work from December 2012 ('the RDR').  There has been relatively little change from the first draft published in July 2007.  

'Under the FSA's proposals, advisers will have to charge customers a fee rather than receiving commission from the companies whose products they recommend.  I believe the drive to 'adviser-led remuneration' means our well-established, time-based billing model will gives us a competitive advantage over much of the IFA sector, which many commentators expect to contract as a result of the proposed changes.

'We believe increased regulation will lead to new acquisition opportunities and our strong balance sheet enables us to take advantage of these.  Clients acquired as part of the two acquisitions completed in the previous financial year have continued to integrate well, benefitting from our more proactive approach.  

'Whilst concern was expressed about Chancellor Alistair Darling's 2009 Budget proposals to restrict tax relief on pension contributions for people with taxable income of £150,000 or more to the basic rate of income tax with effect from 6 April 2011, we are confident this will have a negligible impact on our business.  Retirement planning will still be required despite these changes and our focus is on capturing existing retirement wealth, rather than having any significant reliance on new contributions.  Following the introduction of the lifetime allowance in April 2006, many high-earners have already stopped or substantially reduced their contribution levels to avoid overfunding their pension schemes.  

'Legislative changes create complications, which inevitably lead to greater client advisory and planning opportunities for Mattioli Woods.  

'It is clear there will be no rapid conclusion to the problems brought about by the credit crisis.  The shift in responsibility for pension provision from the state and the employer to the individual is further underlined by the continuing demise of defined-benefit schemes throughout the UK. I believe this will leave millions of employees in a position of needing advice and lead to more people taking control of their retirement savings through self-invested personal pensions ('SIPPs').  We continue to review how best to take advantage of the opportunities this will create in the years ahead.  

'I believe a combination of market conditions and political change will only serve to heighten the public's awareness of the need to save more and plan more thoroughly for retirement.  We are passionate about developing a business that can continue to deliver our highly-personalised services, but to a significantly higher number of clients long-term. In the short term, I am confident we can continue to build upon our long track record of profitable growth.'  

Notice of Final Results

Mattioli Woods will be announcing its Final Results for the year ended 31 May 2009 on Tuesday, 8 September 2009.  

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 8 September 2009 at Financial Dynamics Limited, Holborn Gate, 26 Southampton Buildings, London, WC2A 1PB.  

Those analysts wishing to attend are asked to contact Kat Bloom at Financial Dynamics Limited 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	Tel: [phone]
[e-mail]	www.mattioli-woods.com

Nathan Imlach, Finance Director	Tel: [phone]
[e-mail]	www.mattioli-woods.com

Evolution Securities Limited
Joanne Lake, Corporate Finance	Tel: [phone]
[e-mail]	www.evosecurities.com

Media enquiries:

Financial Dynamics Limited
Ed Gascoigne-Pees / Nick Henderson	Tel: [phone]
[e-mail]	www.fd.com

Notes to editors

Mattioli Woods is one of the UK's leading and fastest growing providers of specialist pension consultancy and retirement 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 has focused particularly on advice on the application and administration of self-invested personal pensions ('SIPPs') and small self-administered pension schemes ('SSASs').  Mattioli Woods now advises circa 3,000 pension fund clients throughout the UK with funds under trusteeship in excess of £1.6 billion.

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.

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

• In-house investment research and broking.  

• Property syndication.  

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

• Assistance and advice with securing preferential banking arrangements for clients.  

For more information visit www.mattioli-woods.com 

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