Mattioli Woods' full year revenue rises due to five acquisitions

Wealth management and employee benefit provider Mattioli Woods’ full year revenue rose due to several acquisitions, although it experienced a slowdown in investment activity since the Brexit vote.

For the year ended 31 May, revenue was up 24.3% to £43m, compared to the same period last year, with recurring revenues representing 82.6%, due to growth in the wealth management business following the government's announcement of new pension freedoms.

Chairman Bob Woods, said the company saw some slowdown in investment activity over the summer due to market trubalance from the economic uncertainty created in light of the Brexit vote following the EU referendum in June.

“Although further volatility in financial markets may impact how our investment and asset management revenues are derived, it remains a great strength of our business that we can continue to derive income from investments in all asset classes, while ensuring our clients' investment strategies are appropriately aligned to the prevailing conditions and suitable for their financial needs.”

The company’s earnings were enhanced by five acquisitions during the year, including the acquisition of pensions administrator MC Trustees announced on Thursday for £2.2m.

Net organic revenue growth rose 11.3% as the company gained over 1,100 new clients and has 104 consultants by the end of the financial year, as it broadens its position as adviser, manager and provider.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased 25.7% to £9.3m and the adjusted EBITDA margin stayed relatively flat with a slight increase to 21.6% from 21.3% last year.

The value of total client assets increased by 22.2% to £6.61bn and the discretionary assets under management was up 15.8% to £1.17bn.

Its client Custodian REIT, which is fund managed by Custodian Capital, a property investment and management business, raised £98.4m of new equity during the period.

Earnings per share rose 14% to 31p each as the dividend increased by 19% to 12.5p per share.

In June 2015, it raised £18.6m through a share placing and the company also said it increased headroom on regulatory capital requirements.

Woods added: “I believe Mattioli Woods' vertically-integrated models for wealth management and employee benefits, combining our capabilities as adviser, administrator, product provider and asset manager, positions us well to secure further profitable growth going forward.”

N+1 Singer's Jamie Constable said the company's full-year results were in-line with the broker's forecasts and the dividend slightly ahead.

Shares in Mattioli Woods were up 4.57% to 686.47p at 1316 BST.