Leicester wealth management firm predicts 20% profits boost
Leicester wealth management firm says the “prudent” measures it has put in place during the Covid-19 period will see its profits be around 20% ahead of expectations for the year ending 31 May.
In March, the company announced that all Board directors were reducing their basic salary or fees by 50% and the firm’s CEO, Ian Mattiolim was reducing his basic salary to zero until 30 June 2020, with executive directors’ salaries being temporarily rebased from 1 July to create an annual saving of over £400,000.
Mattioli Woods has confirmed it will maintain other employees’ basic salaries, with both these positions to be reviewed at 30 November. Remaining staff bonuses and all directors’ bonuses relating to the financial year just ended will not be paid.
The company says it has found a further £400,000 savings in administrative expenses.
Ian Mattioli said: “Even in these unprecedented times we are continuing to grow and develop the business, both organically and through continued acquisition. We recognise that a significant number of our clients are being affected by these challenging economic conditions. We have taken the decision not to alter any of our fee structures or implement any fee increases, which will continue to give our clients the benefit of reduced total expense ratios. I am confident our combination of lower costs alongside strong investment performance will ensure we continue to deliver good financial outcomes for our clients.
“Ensuring our clients and the Group are in a strong position is key. Having reduced my basic salary to zero from 1 April I am happy to take an ongoing reduction of over 60% of basic salary from 1 July, which sits alongside the positions we have agreed regarding other senior executives’ pay and staff bonuses, all of which enable us to start the new year with clarity around our financial position and strategic plan. I believe that providing our people with security around their own positions will see our clients and the business through this complex period.
“I cannot express enough how much I appreciate our people’s endeavour and their dedication to Mattioli Woods and our clients. We believe the benefits of operating a responsibly integrated business will enable us to secure good client outcomes as we move forward through these complex times.”