Trading Update

RNS Number : 1625L

Mattioli Woods PLC

02 July 2014

 



2 July 2014

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 financial year ended 31 May 2014, which are to be announced on Tuesday, 2 September 2014. 

Highlights

·      Strong revenue growth, up 25% on prior year

·      Total client assets of £4.63bn, up 27% on prior year

·      Discretionary AuM of £0.75bn

·      Rebranding of acquired subsidiaries in June 2014

·      Appointment as manager of Custodian REIT in March 2014

·      Acquisition of Atkinson Bolton in July 2013

·      Further investment in technology planned

·      Well positioned for growth going forward

Bob Woods, Executive Chairman, comments:

"I am pleased to report another year of strong growth, in line with our expectations.  The Group's total client assets under management, administration and advice had increased by 27% to £4.63 billion at the year-end.  There has been much hard work during the period, hallmarked by the recent "Mattioli Woods" rebrand of Kudos Financial Services Limited and Atkinson Bolton Consulting Limited ("Atkinson Bolton").  This integration has brought additional scale and broadened the Group's range of products and services.  

"In March 2014 we announced the appointment of our subsidiary, Custodian Capital Limited ("Custodian Capital"), as discretionary investment manager of Custodian REIT plc ("Custodian REIT"), a new closed-ended property investment company listed on the Main Market of the London Stock Exchange.  Custodian REIT raised £55 million of new money on admission, as well as acquiring £95 million of UK commercial property sourced from an existing portfolio of 48 properties held by clients of Mattioli Woods.  As manager, Custodian Capital will receive accounting and administration fees plus an annual management charge based on the net asset value of Custodian REIT, enhancing the Group's recurring revenues. 

"These are significant milestones, marking the next phase in our development as a 21^st century financial services business.  

"The Government's intention to provide full access to pension funds from retirement has brought clarity to the issue of "ownership" and pensions have been made very much more attractive.  I expect the proposed changes to be good for the Group and the industry in general, with new planning opportunities already being welcomed by our clients.  

"Changes in employee benefits as a result of auto-enrolment, the introduction of a charge cap on auto-enrolment pension schemes in April 2015 and the abolition of provider commissions in April 2016 are obliging many employers to review their benefits strategies.  We have positioned the Group to take advantage of the opportunities we anticipate these changes will create by developing a broad array of employee benefit services, including a packaged auto-enrolment solution for the smaller employer, healthcare consulting, executive financial counselling, international benefit consulting and our own 'Create' flexible benefits technology. 

"As a result of these changes, there will be a shift in employee benefits revenues away from up-front commissions, reducing revenues in the short term, but leading to higher fee-based recurring revenues going forward. 

"The continued development of our technology infrastructure is a key part of our strategy.  Over the next 12 months we plan a further £1 million of capital investment 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 strategy remains focused on the pursuit of strong organic growth, supplemented by strategic acquisitions.  I believe this is a powerful combination, which will keep the Group well positioned to secure further profitable growth." 

Notice of Final Results

Mattioli Woods will be announcing its final results for the year ended 31 May 2014 on Tuesday, 2 September 2014. 

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 2 September 2014 at FTI Consulting, 200 Aldersgate, Aldersgate Street, London, EC1A 4HD.  Those analysts wishing to attend are asked to contact Laura Ewart 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

Media enquiries:

FTI Consulting
Laura Ewart	Tel: [phone]
[e-mail]	www.fticonsulting.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 6,250 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 £4.6 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.mattioli-woods.com. 

 

END

 

 

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