Increased demand for advice lifts wealth manager
Mattioli Woods increased first-half profits by 10% despite a small dip in its assets under management.
The wealth manager benefitted from increased demand for advice driven by proposed pension and investment reforms, and uncertain market conditions.
Chancellor Jeremy Hunt used his Autumn Statement to confirm a range of proposed reforms to pensions tax relief to encourage workers over 50 to extend their working lives, including increasing the annual allowance, removing the Lifetime Allowance charge and freezing lump sum limits.
Mattioli Woods increased revenues by 8% to £59.1m in the six months to November, with both organic growth and acquisitions contributing to the growth. Profits, as measured by adjusted EBITDA, were up 10% to £16.5m although assets under management was slightly below last year, down 0.4% to £15.2bn.
Chief executive Ian Mattioli said: “The first half of the financial year has seen the group deliver a resilient trading performance against a complex macroeconomic backdrop.
“We plan to build on this position, advancing our key strategic initiatives: new business generation, investing in our adviser academy training programmes, developing our investment proposition, developing new products and services, reviewing our processes, and investing in technology to deliver operational efficiencies and growth through the integration of strategic acquisitions.”
Recent deals by the group’s companies include Maven Capital’s purchase of EIS-focused fund manager Newable Ventures and Ludlow Wealth Management’s acquisition of Opus Wealth Management.
Mattioli Woods’ share price has recovered from a 20% drop in the autumn and is back trading around 600p, which values the group above £300m.
It has announced a dividend of 9.0p, a 2.3% increase, and it has maintained its commitment to a progressive dividend policy.
