Acquisition of City Trustees

RNS Number : 7915Q

Mattioli Woods PLC

10 August 2010

 



10 August 2010

Mattioli Woods plc

("Mattioli Woods" or "the Group")

Acquisition of City Trustees

Mattioli Woods plc (AIM: MTW.L), the specialist pensions consultancy, is pleased to announce the acquisition of 100% of the issued share capital of City Trustees Limited and its associated company City Pensions Limited (together "City Trustees") from Lighthouse Group plc ("Lighthouse") for a cash consideration of £1.85 million, net of inter company balance repayments made by Lighthouse prior to completion.  The acquisition is being funded from the Group's existing cash resources and results in a cash outflow of £1.75 million, net of deal costs less cash acquired with City Trustees. 

Established in January 1996, City Trustees provides trustee and administration services to 965 self-invested personal pension ("SIPP") schemes, 123 small self-administered pension ("SSAS") schemes and 14 funded unapproved retirement benefit schemes, with total funds under trusteeship of over £300 million.  City Trustees also offers technical pensions consultancy to professional advisers and their clients. 

In the year ended 31 December 2009, City Trustees generated a loss after taxation of £56,000, on revenues of £780,000.  City Trustees' net assets at 31 December 2009 were £413,000.  The acquisition provides Mattioli Woods with a separately branded administration business of immediate scale.  The acquisition is expected to be earnings enhancing in the first full year of ownership, following the cross-selling of existing service lines, realisation of synergies and other benefits from combining the assets and activities of City Trustees with those of Mattioli Woods. 

City Trustees' experienced team of administration staff will be retained by Mattioli Woods following the acquisition. 

Commenting on the acquisition, Bob Woods, Executive Chairman of Mattioli Woods, said:

"City Trustees has an excellent reputation for providing bespoke pensions administration, coupled with first-rate client service and is a great fit with our existing business. 

"In addition to providing a London base for our Group and increasing the scale of our core SIPP and SSAS operations, the acquisition brings the opportunity to expand our range of services through the development of a separately branded administration proposition.  I am delighted these services will be promoted as part of Lighthouse's Strategic Partnership Programme over the next 18 months. 

"With the continuing demise of defined benefit pension plans, the growth of defined contribution schemes and the increasing need for people to plan for their financial futures, we expect further growth in demand for the Group's retirement wealth management solutions.  It is our ambition to continue expanding Mattioli Woods' operations both organically and by acquisition, as demonstrated by the purchase of City Trustees."

David Hickey, Executive Chairman of Lighthouse, commented: 

"When approached by Mattioli Woods, we felt it appropriate to facilitate a transfer to a noted pension specialist.  We are pleased this transaction will safeguard the future interests of clients and staff associated with the business.  We see Mattioli Woods' client proposition as complementary both to the assets being transferred and to the needs of our clients requiring bespoke pension administration services.  This transaction makes possible the development of a closer, ongoing relationship with Mattioli Woods." 

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For further information please contact:

Mattioli Woods plc
Bob Woods, Executive Chairman	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

About Mattioli Woods:

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 SIPPs and SSASs.  Mattioli Woods now services over 4,000 pension fund clients throughout the UK with total funds under trusteeship in excess of £2.0 billion.

Mattioli Woods has a focus on 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 

About Lighthouse:

Lighthouse is one of the largest financial adviser groups in the UK, with over £6 billion of funds under advice.  Lighthouse has in excess of 800 IFAs across the UK providing financial planning advice to both private and corporate clients.

On 21 April 2010, Lighthouse was named the Large IFA of the Year at the 2010 Financial Adviser Awards. 

 

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