Mattioli Woods hikes interim dividend 15% as AUM grows strongly

Revenue from Mattioli Woods increased 20% in the first half of the year after the wealth manager grew assets under management by more than 24% despite the volatile markets.

Total revenue increased 20% to £19.9m, of which recurring revenues represented 81.6% as total client assets swelled 29.5% to £6.49bn and discretionary assets under management passed the £1bn milestone.

The wealth management business was boosted by new business wins and recent acquisitions that more than offset a £0.66m fall in banking income, following the expected further cuts in interest margin.

Demand for advice has continued to be strong and investment in the consultancy team has increased new business flows.

Adjusted earnings before interest, tax, depreciation and amortisation grew 18.4% to £4.3m, while adjusted earnings climbed 9% to 14.65p per share.

The board lifted the dividend 15% to 3.85p.

"Acquisitions continue to be a core part of our growth strategy and we anticipate there will be further opportunities to expand the group's operations by acquisition," said chief executive Ian Mattioli, whose co-founder Bob Woods will stand down as executive chairman in October.

In the second half of the year he expects a sustained demand for advice from clients, offsetting any impact volatile markets have on lowering asset values.

"We are broadening our proposition as trusted adviser, product provider and asset manager and believe our blend of wealth management and employee benefits positions us well to deliver further strong shareholder returns going forward," he said.