Acquisitive wealth managers see revenue rise despite economic uncertainties
Leicester wealth management firm Mattioli Woods says it expects revenue growth to be up 7% year on year for the year end 31 May in its latest trading update.
The acquisitive firm, which marks its 30th anniversary this year, last week completed a £100m deal to buy private equity firm Maven Capital Partners, a deal funded through a £112m fundraise during the FY and noted that the revenue growth was driven by increased inflows and performance of discretionary portfolio managed services.
Ian Mattioli MBE
Ian Mattioli, chief executive of the firm said he was “pleased to report revenue growth, despite the continued economic uncertainties”, with the results also showing the firm had a strong balance sheet at the end of the period with £21.9m of cash.
He added that the firm continues to grow both organically and through acquisitions adding that notable progress was made this year “following the acquisitions of the Exempt Property Unit Trust (“EPUT”) administration business of BDO Northern Ireland, Montagu Limited, Pole Arnold Financial Management and Caledonia Asset Management.”
Mattinoli also noted that post year end its deal for Ludlow Wealth Management Group “remains subject to FCA approval” and that along with a pipeline of smaller transactions and the deal for Maven Capital Partners they represent meaningful progress towards the firm’s ambitious medium-term revenue, earnings and asset goals and will “extend the Group’s existing investment proposition to clients and add to our distribution capacity and scale”.
Looking ahead the board remains positive about the Group’s prospects with the chief executive highlighting that they’ve seen “positive momentum continue to build, with greater client activity”.
Mattinoli added: “The Group’s profit for the year ended 31 May 2021 remains in line with management’s expectations and we continue to progress our strategic initiatives, through sustained investment in our people, technology and infrastructure including our partnership with the Tiller Group to develop a streamlined digital investment solution for our discretionary investment management service.
“We continue to expect the Group to secure organic revenue and profit growth in this new financial year, while progressing our acquisition and integration strategy and to remain focused on delivering great outcomes for our clients.
“We are well-positioned to progress further towards our medium-term goals. The Group is proud to mark its 30th anniversary this year and we continue to develop a business that is sustainable and here for the long term. Creating and preserving wealth, our focus remains on ensuring our trusted advice gives clients the understanding to achieve their objectives.”
