Mattioli Woods flags full-year revenue and earnings growth
By Josh White
Date: Tuesday 14 Jul 2020
(Sharecast News) - Wealth management and employee benefits company Mattioli Woods updated the market on its full year on Tuesday, reporting both growth in revenue and "strong" growth in adjusted EBITDA and adjusted profit before tax.
The AIM-traded firm said it saw improved margins for the 12 months ended 31 May, following an operational restructure before the Covid-19 pandemic.
Mitigating actions had been taken to protect the company's financial position in light of the coronavirus crisis, the board said, adding that it had continued to deliver an "uninterrupted service" to clients.
It said it was building capacity to "do more for existing clients", as well as future growth.
Client assets totalled £9.3bn for the group at year-end, with gross discretionary assets under management standing at £2.6bn, and net inflows coming in at more than £200m during the year.
Mattioli Woods said recent acquisitions were integrating "well", adding that the company was in a "strong" financial position, with £26m of cash at year-end.
"The group's financial performance in the first nine months of the year was in line with the board's expectations but, as anticipated, in the final quarter the impact of the Covid-19 pandemic on financial markets resulted in a reduction in the group's income streams linked to the value of clients' assets and its banking revenue," said chief executive officer Ian Mattioli.
"In light of the trading conditions created by the pandemic we pre-emptively implemented a number of mitigating actions to protect our strong financial position, realising £0.15m of cost savings through all plc board directors reducing their basic remuneration plus a further £2.7m on confirmation that remaining staff bonuses and all directors' bonuses in respect of the financial year will not be paid."
Mattioli said the company's profit for the year remained in line with its revised expectations set out on 1 June, adding that the company was progressing its strategic initiatives, including the further development of its own IT solutions where possible.
"In December, we were pleased to announce the acquisition of the Turris Partnership, which followed the acquisitions of SSAS Solutions UK and Broughtons Financial Planning in the prior year, which are all integrating well and have contributed positively to our trading results since acquisition.
"Within the next few weeks, we expect to receive FCA approval to complete our acquisition of Hurley Partners, where current trading is in line with our pre-Covid expectations."
Mattioli Woods said the final results for the year ended 31 May would be announced on 2 September.
At 1212 BST, shares in Mattioli Woods were down 1.88% at 701.58p.
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