Trading Update

RNS Number : 4727H

Mattioli Woods PLC

01 December 2015

 

1 December 2015

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 2015, which are to be announced on Tuesday, 2 February 2016. 

Highlights

·      Strong revenue growth of over 16% in Year to Date

·      Maintaining target EBITDA margin

·      Total client assets now exceed £6.5bn (FY15: £5.4bn)

·      Integration of recent acquisitions on target

·      Over £57m of new equity raised by Custodian REIT plc since 1 June

·      New wealth management cases won in Year to Date up 13%

Ian Mattioli, Chief Executive, comments:

"I am pleased to report further strong revenue growth in the first five months of this financial year ("the Year to Date"), with revenues up over 16% on the equivalent period last year.  The recently acquired businesses of Boyd Coughlan and Taylor Patterson are integrating well and contributing positively to the Group's trading results since acquisition.  We continue to enjoy strong demand for advice at a time of great change in both investment markets and the pensions landscape.  Current trading is in line with the Board's expectations and we remain confident in the outlook for the remainder of the year. 

"The development of our consultancy team is driving increased new business flows and strengthening the Group's distribution channels nationwide.  In the first five months of this financial year we have won new wealth management cases (comprising SIPP, SSAS and personal clients) with total assets under management, administration and advice of over £145m, up 13% on the total assets of £128m won in the equivalent period last year. 

"Although volatile investment markets have slowed growth in elements of our investment revenues, our subsidiary, Custodian Capital Limited, has raised over £57m of new monies since the start of the period as discretionary investment manager of Custodian REIT plc, 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.  

"In our employee benefits division, the shift to a fee-based proposition is being well-received by corporate clients.  We anticipate the forthcoming abolition of provider commissions in April 2016 will further change the revenue mix, as the market adjusts to accommodate another Government-led initiative.  The latest changes in pensions legislation have enabled us to take our wealth management services into more boardrooms, as we extend the reach of our proposition. 

"Our most recent acquisition, the pension business of Lindley Group Limited, is bedding-in well, and together with the acquisitions of Boyd Coughlan and Taylor Patterson has increased the Group's total client assets under management, administration and advice to over £6.5 billion at 31 October 2015 (31 May 2015: £5.4 billion).  Further consolidation in the SIPP market appears likely, with increased regulatory capital requirements for SIPP operators coming into effect from 1 September 2016.  The balance of the funds we raised by way of a placing with institutional investors in June 2015 provides the Group with the flexibility to make further earnings-enhancing acquisitions. 

"The Group's senior Non-Executive Director, John Redpath, has informed the Board that, as planned, he wishes to retire early in the New Year.  The Nomination Committee has initiated a search process to replace John and a number of suitable candidates have been identified.  John has served on the Board since our admission to the AIM market in November 2005.  The Board greatly appreciates John's valuable contribution to the Group's growth over the last ten years and wishes him well for the future. 

"Our focus is on ensuring we continue to address our clients' changing needs and our ambition is to see our brand become an even stronger force in the UK financial services sector.  I am delighted with the performance of our business in the ten years since our admission to AIM and I believe Mattioli Woods' capabilities as adviser, provider and asset manager position us well 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 2015 on Tuesday, 2 February 2016.  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 February 2016 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
Sunil Duggal	Tel: [phone]
Roger Lambert	www.canaccordgenuity.com
Kit Stephenson

Media enquiries:

Camarco
Ed Gascoigne-Pees	Tel: [phone]
	www.camarco.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 8,000 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 £6.5 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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