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Mattioli Woods increases first half profits

  • By Georgie Davey
  • News
Interim results highlights:
• Total client assets of £8.79bn;
• Revenue up 2.8% to £29.2m;
• Profit before tax up 3.7% to £5.6m;
• Cash reserves of £16.4m;
• New £15.3m freehold Leicester office now fully operational;
• Lowered clients’ costs while improving margin through operational efficiencies;
• Profit outlook for year in line with management’s expectations.

Wealth management business Mattioli Woods plc has announced an increase in its profits during the first half of its financial year.

CEO Ian Mattioli MBE, told IFA Magazine that he was pleased with the results and that its integrated model was focused on creating a sustainable and resilient business with its clients at the absolute core, including £1.75m of administration and dealing expenses being used to reduce client costs.

He said: “The success of Mattioli Woods has been based upon the delivery of quality advice, growing our clients’ assets and enhancing their financial futures. We look after their money as well as their financial aspirations.

“I believe our focus on client service and the inherent flex within our business model will allow us to continue to adapt to the changing wealth and asset management marketplace.”

He confirmed that he believed fees for financial services in the UK were too expensive and that, as a result, the business had set out its aim to lower client costs through operational efficiencies.

He added that the time was absolutely right to proactively engage with clients to ensure the business is addressing their changing needs.

He also highlighted the success of the Group’s investment services such as the Private Investors Club, Custodian REIT plc and the Mattioli Woods Structured Products Fund, in addition to the funds managed by its associate company Amati Global Investors Limited, all of which have led to inflows of £140.5m during the period.

And he confirmed the firm’s adjusted EBITDA margin – earnings before interest, taxation, depreciation and amortisation – was “…substantially ahead…” of its 20% target. The Group reported adjusted profit before tax up by 8.3% to £6.5m and revenue growth of 2.8% to £29.2m, demonstrating how technology and improved systems were helping both clients and the business to grow and develop.

Mattioli Woods moved its Leicester office into new premises in the city centre’s New Walk development during the period

As for future prospects, Mattioli said: “Our profit outlook for the year remains in line with management’s expectations, and I am confident we can secure further progress towards the ambitious longer-term goals we have set.”

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