Monday, May 23, 2022

Mattioli Woods achieves “key milestone”

Mattioli Woods, the specialist wealth management and asset management business, has achieved a “key milestone” and strong revenue growth, according to a trading update in advance of its interim results for the six months ended 30 November 2021.

Total client assets of the group and its associate reached £15.1 billion at the period end, an increase of 42% on the equivalent prior period.

The business meanwhile saw total revenues rise to £49.9m from £29.5m. 

Ian Mattioli MBE, Chief Executive, says: “The first six months of this financial year saw us build momentum despite the complexities, economically and politically, that persisted throughout 2021. During the period, we proactively balanced securing good financial outcomes for our clients with ensuring the long-term sustainability of our business, and I am pleased to report further material progress towards our strategic medium-term goals, with total client assets now at £15.1 billion.

“We saw strong performances in our pensions and consultancy, and investment and asset management operating segments with the number of new clients on-boarded in the first half and net inflows into the Group’s investment and asset management services ahead of the equivalent period last year, reflecting the success of new business initiatives and strength of existing client referrals, with organic revenue growth in excess of 10 per cent. for the period. These initiatives are also driving an increasing pipeline of new business enquiries.

“Our discretionary managed funds continue to perform well and represent a combined value of £5.1 billion, an increase of c.55% on the equivalent prior period, including more than £1.3 billion with the Group’s associate, Amati Global Investors, an increase of c.75% on the prior period.

“Recent acquisitions and double digit organic revenue growth have driven a material increase in scale during the period, with the Group’s profit margins maintained through prudent cost management and investment to realise further operational efficiencies.

“During the period we were pleased to announce the completion of our two largest acquisitions to date, Maven Capital Partners (Maven) and Ludlow Wealth Management (Ludlow). Both businesses are trading ahead of budget and have contributed positively to the Group’s results, building upon our track record of more than 30 successful acquisitions.

“Within Maven we are progressing a number of cross-sell revenue synergy opportunities that are already being shared with qualifying Mattioli Woods and Maven clients, and plan to bring further new opportunities in the near future. Maven has also delivered a number of performance fees ahead of budget further supporting the acquisition rationale. Our Ludlow team is already engaging with our discretionary managed investment services, as well as delivering planned cost synergies. 

“We anticipate further consolidation within the wealth management, pensions administration, asset management and financial planning sectors, with many more opportunities coming to market. We expect to continue to assess and progress bolt-on opportunities in the nearer term as well as potentially more substantial opportunities in the longer term, with all potential transactions required to meet our strict investment criteria and due diligence procedures.

We remain committed to our culture of putting clients first and to delivering our ambitious growth plans for the business. We are progressing our strategic initiatives, including the development of our bespoke MWeb platform and digital client interface, where we anticipate additional medium term investment in the region of £2-4m per annum.

“The Group’s trading outlook for the current financial year remains in line with management’s expectations and Mattioli Woods remains well-positioned to deliver sustainable shareholder returns.”

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