Mattioli Woods hikes total dividend after year of growth

Wealth and asset management specialist Mattioli Woods reported a 2.7% increase in total client assets in its final results on Tuesday, reaching £15.3bn.

The AIM-traded company said revenue for the year ended 31 May was ahead 2.8%, standing at £111.2m.

Organic revenue growth came in at 3.7%, translating to £75.7m, while acquisitions contributed positively, rising 0.7% to £35.5m.

The firm recorded a 14.6% increase in the total value of new client acquisitions, hinting at successful business development initiatives.

Improved new client lead generation resulted in a 16.2% rise in the new business pipeline compared to last year.

Recurring revenues now constituted 90.9% of total revenue, the board said, up from 86.8% in 2022, while adjusted EBITDA was 1.8% higher at £33.2m, as the margin stood at 29.8%.

Adjusted earnings per share came in at 47.8p, influenced by the issue of new shares for acquisitions in the fourth quarter.

Proposing a final dividend of 18p, the board said the total dividend was 2.7% firmer at 26.8p, aligning with its progressive dividend policy.

The company reported a cash position of £45.1m at year-end on 31 May.

Looking ahead, Mattioli Woods remained optimistic about the future, as the outlook for the coming year aligned with the board’s expectations.

With a well-established platform, multiple client engagement avenues, and an integrated model, Mattioli Woods said it remained well-placed for growth.

The company emphasised continued new business generation, leveraging synergies with recently-acquired businesses, advancing pivotal strategic ventures, and prioritising improved operational efficiency supplemented by targeted acquisitions.

“The last few years have been complex for our clients; this has reinforced our commitment to putting clients first and developing our service offering,” said chief executive officer Ian Mattioli.

“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%, 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% and the 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.”

Mattioli said the company expected the current macroeconomic conditions and recent legislative changes to drive continued demand for high quality advice, as it expanded capacity within its 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 its financial planning and specialist pension consultancy businesses.

At 0908 BST, shares in Mattioli Woods were up 3.07% at 623.6p.

Reporting by Josh White for Sharecast.com.