TIDMMTW
RNS Number : 1660B
Mattioli Woods PLC
08 January 2018
8 January 2018
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 2017, which are to be announced on
Tuesday, 6 February 2018.
Highlights
* Revenue up over 16% on prior year
* Stronger organic revenue growth of over 15%
* Total client assets at the period end of over GBP8.3
billion
* Gross discretionary assets under management(1) of
over GBP2.0 billion
* EBITDA margin in first half substantially ahead of
20% target
* Budgeted operating costs to be weighted towards
second half of financial year
* Recent acquisitions performing and integrating well
* Strong financial position, with net cash of over
GBP14 million
* Profit outlook for year remains in line with
management's expectations
[1] Including over GBP214 million of funds under management by
the Group's associate company, Amati Global Investors.
Ian Mattioli, Chief Executive, comments:
"I am delighted to report the six months ended 30 November 2017
represented another period of strong and sustainable growth. We are
seeing an increasing flow of organic new business generated by our
maturing consultancy team, driven by continued demand for advice,
for our products and our services. We have seen strong inflows into
our asset management business, comprising our Discretionary
Portfolio Management service, Private Investors Club, Custodian
REIT plc, the Mattioli Woods Structured Products Fund and the funds
managed by our associate company, Amati Global Investors, with
gross discretionary assets under management increasing to over
GBP2.0 billion.
"We continue to invest in developing our people and building the
capacity to deliver further growth. Our collegiate team structures
and proven training plans are accelerating both the maturation of
existing consultants and the development of new consultants, while
ensuring our core values of sustainability and integrity are
maintained.
"Recent acquisitions are performing and integrating well, with
revenue growth in the year to date including a full period's
contribution from the MC Trustees pension administration business
acquired in September 2016. Amati Global Investors has enjoyed
strong growth with the value of funds under management increasing
from GBP120 million on investment in February 2017 to over GBP214
million at the period end.
"The team at Amati was awarded Investment Week's UK Smaller
Company Fund Manager of the Year award in July 2017 and has
followed this success by being named the Best AIM IHT Portfolio
Service for the second year running at the Investment Week Tax
Efficient Awards 2017/18 last month. We are delighted with these
votes of confidence in Amati's investment philosophy and
performance.
"I believe that being open and transparent about reducing costs
has led to higher business volumes. As our business grows, I expect
operational gearing will allow us to further improve the client
offer. We reduced the custody charge for all those clients using
our core investment platform with effect from 1 August 2017, which
coincided with the launch of our new range of multi asset funds
designed to improve investment efficiency, administration and
reporting for clients. The value of assets held on the platform
increased from GBP1.2 billion to GBP1.5 billion during the
period.
"In addition, the terms of the Investment Management Agreement
for Custodian REIT, the UK real estate investment trust managed by
our subsidiary Custodian Capital, were amended in June 2017 to
secure both a cost reduction for investors in Custodian REIT and an
important long-term revenue stream for the Group. In the first six
months of this financial year Custodian REIT raised GBP33 million
of new monies, increasing its market capitalisation to GBP427
million.
"In November 2017 the Mattioli Woods' Structured Products Fund
was named Retail Investment Product of the Year at the Risk Awards
2018. We are delighted the fund has gained industry recognition
only 12 months after its launch, having been designed around our
core objective of delivering sustainable long-term returns to
clients while lowering their costs. The fund offers investors the
benefits of collateralisation, instant diversification, continuous
availability and liquidity, with GBP49 million of new investment
increasing the fund's value to GBP147m at the period end.
"Securing the economies of scale and operational efficiencies
that I have previously outlined, particularly through the
integration of acquired businesses and clients, are key elements of
our stated aim to reduce clients' total expense ratios, while
maintaining fair and sustainable profit margins for our
shareholders.
"Investment in the Group's infrastructure continues. Testing of
the next phase of our IT development is underway as we move towards
implementation of hosted IT architecture, which will offer enhanced
data security, business continuity and scalability for future
growth. The move to a new central Leicester office is scheduled for
the summer of 2018, approximately three months behind schedule as a
result of delays in the delivery of materials and subsequent
installation. Importantly, our contract with the developer is at a
fixed price and all costs remain in line with expectations. Our
investment in a stronger infrastructure base is expected to realise
new operational efficiencies and enable further integration across
the Group in subsequent years.
"Strong growth in revenue in the first six months of this
financial year has translated into strong growth in EBITDA, with
EBITDA margin for the first half tracking substantially ahead of
our 20% target. As anticipated, operating costs associated with our
ongoing IT development, the move to our new Leicester office and
the demands of new regulations will be weighted towards the second
half of this financial year.
"Acquisitions continue to be a core part of our growth strategy
and we believe further consolidation within our core markets
remains likely. Our strong balance sheet gives us the flexibility
to make further value-enhancing acquisitions.
"The inherent flex within our business model allows us to adapt
quickly to address our clients' changing needs. As we seek to
broaden our proposition, organically and by acquisition, I expect
Mattioli Woods' capabilities as adviser, provider and asset manager
to deliver improved client outcomes and secure further profitable
growth going forward.
"I believe the Group remains very well placed to succeed in its
chosen markets and our profit outlook for the year remains in line
with management's expectations."
Notice of Interim Results
Mattioli Woods will be announcing its interim results for the
six months ended 30 November 2017 on Tuesday, 6 February 2018. An
analyst briefing given by Ian Mattioli, Chief Executive and Nathan
Imlach, Chief Financial Officer will be held at 09:30 hrs on 6
February 2018 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 +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
ian.mattioli@mattioliwoods.com www.mattioliwoods.com
Nathan Imlach, Chief Financial
Officer
nathan.imlach@mattioliwoods.com
Canaccord Genuity Limited
Sunil Duggal, Investment Banking Tel: +44 (0) 20 7523 8000
Andrew Buchanan, Corporate Broking www.canaccordgenuity.com
Margarita Mitropoulou, 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 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 10,000 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 GBP8.3 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.mattioliwoods.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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