Mattioli Woods performing in line after first half

Specialist wealth and asset management company Mattioli Woods updated the market on its trading on Thursday, reporting total client assets of £15.1bn at the end of the first half, making for an increase of 42%.

The AIM-traded firm said gross discretionary assets under management totalled £5.1bn at period end on 30 November, which was an improvement of 55%.

It reported “strong” organic revenue growth of over 10%, with an increased new business pipeline, while its recent acquisitions were integrating and performing ahead of budget, as it sustained its focus on mergers and acquisitions with a “strong pipeline” of opportunities.

Total revenues came in at £49.9m, up from £29.5m in the first half of the 2021 financial year, with revenues in the second half “typically higher” than in the first half.

Mattioli Woods said it was in a “strong” financial position, with £44.3m of cash at period end, adding that the outlook for the current year remained in line with management expectations.

“The first six months of this financial year saw us build momentum despite the complexities, economically and politically, that persisted throughout 2021,” said chief executive officer Ian Mattioli.

“During the period, we proactively balanced securing good financial outcomes for our clients with ensuring the long-term sustainability of our business, and I am pleased to report further material progress towards our strategic medium-term goals.

“We saw strong performances in our pensions and consultancy, and investment and asset management operating segments with the number of new clients on-boarded in the first half and net inflows into the group's investment and asset management services ahead of the equivalent period last year, reflecting the success of new business initiatives and strength of existing client referrals, with organic revenue growth in excess of 10 per cent. for the period.”

Mattioli said those initiatives were also driving an “increasing pipeline” of new business enquiries.

He added that the company’s discretionary managed funds continued to perform well, adding that recent acquisitions and double digit organic revenue growth had driven a “material increase in scale” during the period, with the group's profit margins maintained through “prudent cost management” and investment to realise further operational efficiencies.

“During the period we were pleased to announce the completion of our two largest acquisitions to date, Maven Capital Partners and Ludlow Wealth Management.

“Both businesses are trading ahead of budget and have contributed positively to the group's results, building upon our track record of more than 30 successful acquisitions.

“Within Maven we are progressing a number of cross-sell revenue synergy opportunities that are already being shared with qualifying Mattioli Woods and Maven clients, and plan to bring further new opportunities in the near future.”

Maven had also delivered a number of performance fees ahead of budget, Ian Mattioli said, while the Ludlow team was engaging with the company’s discretionary managed investment services, as well as delivering planned cost synergies.

“We anticipate further consolidation within the wealth management, pensions administration, asset management and financial planning sectors, with many more opportunities coming to market.

“We expect to continue to assess and progress bolt-on opportunities in the nearer term as well as potentially more substantial opportunities in the longer term, with all potential transactions required to meet our strict investment criteria and due diligence procedures.

“The group's trading outlook for the current financial year remains in line with management's expectations and Mattioli Woods remains well-positioned to deliver sustainable shareholder returns.”

At 1105 GMT, shares in Mattioli Woods were flat at 860p.