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Specialist wealth and asset management business, Mattioli Woods has welcomed increased profit, revenue and client assets in its final results for the year ended 31 May 2023.
Total client assets of the group and its associate rose 2.7% to £15.3bn, up from £14.9bn in the year prior. Meanwhile profit before tax at the company grew to £11.9m from £8m.
Revenue increased 2.8% to £111.2m, from £108.2m, driven by a combination of continued organic revenue growth, positive contribution from acquisitions, increased total value of new client wins and improved new client lead generation.
During the year, Mattioli Woods acquired Doherty Pension & Investment Consultancy Limited and a 50.1% stake in White Mortgages Limited.
Ian Mattioli MBE, Chief Executive Officer, said: “The last few years have been complex for our clients. This has reinforced our commitment to putting clients first and developing our service offering.
“We are building a business that is sustainable and ethical, but resilient over the long term, and I am pleased to report this approach has delivered revenue growth of 2.8% to £111.2m, reflecting the combined impact of organic growth of 3.7% and the revenue contribution of recent acquisitions being partially offset by the market impact on ad valorem, placement and performance fees.
“Adjusted EBITDA was up 1.8% to £33.2m and adjusted EBITDA margin was 29.8% with the positive impact of the change in revenue mix following the acquisitions made during the current and prior year being partially offset by inflationary increases in administrative expenditure.
“Basic EPS was up 79.9% to 14.9p and adjusted EPS of 47.8p was down (0.9%). The Board is pleased to propose a final dividend of 18.0p per share. This makes a proposed total dividend for the year of 26.8p a year-on-year increase of 2.7%, demonstrating our desire to deliver value to shareholders and confidence in the outlook for our business.
“We expect the current macroeconomic conditions and recent legislative changes to drive continued demand for high quality advice as we expand capacity within our adviser training academy to train a greater number of advisers each year, seeking to capitalise on the current ‘advice gap’ and drive strong organic growth in our financial planning and specialist pension consultancy businesses.
“We are progressing our other strategic initiatives, including the roll-out of our new, Group-wide client relationship management system Xplan. We are confident in the resilience of our business model and excited by the opportunity to accelerate growth and make meaningful progress towards our strategic goals.
“While inflationary cost pressures and investment in our strategic initiatives may impact margins in the short term, we are confident that we will continue to deliver attractive, long-term sustainable shareholder returns.
“Our focus remains on delivering great client outcomes. We have continued to develop our client proposition, reviewing the range of investment management options we offer and identifying opportunities to enhance the proposition and realise revenue synergies across the Group. The implementation of Consumer Duty regulations brings a welcome focus to the value that clients derive from the various services we offer and accords with our principles of integrity and professionalism.
“Previously acquired businesses are integrating well, with synergies being realised and additional cross-sell opportunities targeted for the new financial year.
“There continues to be a high level of M&A activity in the wealth and asset management sector and we were pleased to complete the acquisition of Doherty and our investment in White during the year. We have a strong pipeline of bolt-on acquisition opportunities to assess, as well as potentially more substantial opportunities in the longer term. We plan to build on our track record of successful acquisitions by continuing to assess and progress opportunities that meet our strict criteria.
“Our Executive team continues to bring new ideas to drive further growth and generate sustainable shareholder returns. We were pleased to announce the appointment of Michael Wright as Deputy Chief Executive Officer to lead and support the delivery of certain strategic goals alongside his current responsibilities.
“I wish to thank David Kiddie for serving a 3-year term as Non-Executive Director and more recently as Non-Executive Chair as he steps down from this role at the next AGM as part of our long-term strategic planning. We are pleased to retain David’s services in a consultancy role with the Group given his expertise and extensive career background in investment management.
“His insight will be invaluable to support the continued development and structure of the Group’s investment proposition required to deliver our next phase of growth.
“Over 31 years since founding the company, I continue to be thankful and humbled by the enduring culture of professionalism, positive mindset and commitment that our entire team continues to show when managing our clients’ affairs throughout another complex year. I look forward to the future with confidence.”
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