TIDMMTW
RNS Number : 8451K
Mattioli Woods PLC
07 January 2021
7 January 2021
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 2020, which are to be announced on
Tuesday, 9 February 2021.
Highlights
-- Key milestone achieved, with total client assets of the Group
and its associate [1] in excess of GBP10 billion at the period
end
-- Further growth in profitability, with improved margins
following actions taken in response to COVID-19 and continued cost
management
-- Gross discretionary assets under management [2] of GBP2.9 billion
-- Strong financial position, with GBP18 million of cash at period end
-- Establishment of new executive team and governance structure
-- Hurley Partners acquisition completed in July 2020 is integrating and performing well
-- Sustained focus on M&A with strong pipeline of opportunities
-- Profit outlook for current year remains in line with management's expectations
-- Post period end non-executive appointments further strengthens board
Ian Mattioli MBE , Chief Executive, comments:
"The first six months of this financial year saw a continuation
of the economic and political uncertainty that was a feature for
most of 2020. Throughout the period we proactively balanced
securing good financial outcomes for our clients with ensuring the
long-term sustainability of our business, remaining true to our
purpose of putting clients first, which has been consistent
throughout our 30 years of trading, and I am pleased to report
further progress towards our ambitious medium term goals with total
client assets now exceeding GBP10.6 billion.
"As anticipated, revenue was slightly lower than in the
equivalent period last year due to the adverse impact of weaker
financial markets and the suspension of certain statutory
requirements for pension schemes resulting in lower fee-based
revenues. However, continued cost management and the positive
contribution of Hurley Partners for part of the period more than
offset the impact of reduced revenues on adjusted EBITDA [3] .
"Our focus remains on our clients' well-being and the
preservation of their wealth. Clients quite rightly remain cautious
of the prevailing economic and investment conditions, which reduced
activity in the first half. We recognise that a significant number
of our clients continue to be impacted by the challenging economic
conditions and remain sympathetic to their needs. Accordingly, we
have resolved to maintain our previously announced position not to
alter any of our fee structures or implement any fee increases for
the remainder of this financial year.
"With a post-Brexit agreement on trade and other issues, coupled
with anticipated changes to the personal tax regime in the first
half of the 2021 calendar year, conditions are favourable for an
increase in investment activity and demand for advice in the second
half of this financial year.
"Our managed funds continue to perform well and represent a
combined value of GBP2.9 billion, including more than GBP700
million at the Group's associate company, Amati Global Investors.
This team gained further recognition having been named Boutique
Manager of the Year at Investment Week's Specialist Investment
Awards in November 2020.
"The early, decisive actions taken to protect our clients and
staff through the pandemic have ensured our business remains fully
operational whilst the majority of our employees continue to work
remotely. This, combined with the active management of fixed and
discretionary costs, enabled us to achieve further cost savings and
margin improvement in the first half, while restoring interim bonus
payments to the majority of our employees.
"We continue to progress our strategic initiatives, including
the development of our bespoke MWeb platform and digital client
interface. In July 2020, we were pleased to announce the completion
of our acquisition of Hurley Partners, which is integrating well
and contributing positively to our Group results. The acquisition
of Hurley Partners, and The Turris Partnership in the prior
financial year, further build on our long track record of
successful acquisitions. We remain committed to our culture of
putting clients first and to delivering our ambitious growth plans
for the business".
"We believe that consolidation across our key markets will
continue and we continue to assess and progress those opportunities
that meet our strict criteria. We have shown that we have a robust
business model in both good and bad economic conditions, which can
deliver additional shareholder value through organic growth from
the development of existing and new client relationships; and the
acquisition of similar or complementary businesses.
"Having further strengthened our executive and senior management
teams during the first half, we plan to build on the progress
already achieved over the remainder of this financial year. Our
level of new business enquiries has increased both in volume and
average value compared to the same period last year, and we have
successfully adopted new ways of working in response to the
pandemic. We anticipate greater client activity and increasing
inflows into our bespoke investment services in the second half of
this year.
"The recent appointments of David Kiddie, Edward Knapp and
Martin Reason to our Board as independent Non-Executive Directors
further strengthens our board and brings additional expertise as we
continue to execute against our growth strategy.
"Our profit outlook for the year remains in line with
management's expectations and we remain well-positioned to deliver
sustainable shareholder returns."
Notice of Interim Results
Mattioli Woods will be announcing its interim results for the
six months ended 30 November 2020 on Tuesday, 9 February 2021.
Ian Mattioli, Chief Executive, Ravi Tara, Group Finance
Director, and Michael Wright, Group Managing Director, will host an
online analyst presentation at 09:30 hours on 9 February 2021.
Those analysts wishing to attend are asked to contact Ed
Gascoigne-Pees at Camarco on +44 (0) 20 3757 4984 or at
ed.gascoigne-pees@camarco.co.uk .
- Ends -
For further information please contact:
Mattioli Woods plc
Ian Mattioli MBE, Chief Executive Tel: +44 (0) 116 240 8700
Officer
Ravi Tara, Group Finance Director www.mattioliwoods.com
Michael Wright, Group Managing
Director
Canaccord Genuity Limited (Nominated Advisor
and Joint Broker)
Emma Gabriel Tel: +44 (0) 20 7523
8000
Tom Diehl www.canaccordgenuity.com
N+1 Singer (Joint Broker)
Justin McKeegan, Corporate Finance Tel: +44 (0) 20 7496 3000
Pete Steel, Corporate Finance www.n1singer.com
Tom Salvesen, Corporate Broking
Media enquiries:
Camarco
Ed Gascoigne-Pees Tel: +44 (0) 20 3757 4984
www.camarco.com
Notes to editors
Mattioli Woods is one of the UK's leading providers of
specialist pension, wealth management and employee benefit
services. Its core proposition integrates asset management and
financial planning to serve 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 11,000 self-invested personal pensions ("SIPP")
and small self-administered pension schemes ("SSAS") throughout the
UK. The Group's assets under management, administration and advice
total over GBP10.6 billion.
Mattioli Woods has a focus on holistic planning and providing
the highest level of personal service, maintaining close
relationships with its clients. The strength of its personal
relationships has led to high levels of client satisfaction,
retention and referrals. For more information, visit
www.mattioliwoods.com .
[1] Includes GBP688.4m (31 May 2020: GBP515.8m) of funds under
management by the Group's associate, Amati Global Investors
Limited, excluding GBP59.6m (31 May 2020: GBP54.1m) of Mattioli
Woods' client investment and GBP13.5m (31 May 2020: GBP11.5m) of
cross-holdings between the TB Amati Smaller Companies Fund and the
Amati AIM VCT plc.
[2] Includes GBP761.5m (31 May 2020: GBP581.4m) of funds under
management by Amati Global Investors Limited, including Mattioli
Woods' client investment and cross-holdings between TB Amati
Smaller Companies Fund and Amati AIM VCT plc.
[3] Earnings before interest, taxation, depreciation,
amortisation, impairment, changes in valuation of derivative
financial instruments and acquisition-related costs, including
share of profit from associates (net of tax).
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END
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