Interim profit and revenue rise at Mattioli Woods
Wealth manager Mattioli Woods posted a rise in interim profit and revenue on Tuesday as it said its profit outlook for the year remains in line with management's expectations.
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In the six months to 30 November 2018, pre-tax profit edged up 3.7% to £5.6m on revenue of £29.2m, up 2.8% from the same period a year ago. Adjusted operating profit grew 8.3% to £6.5m and adjusted earnings before interest, tax, depreciation and amortisation were up 18.5% to £7.7m.
The company lifted its interim dividend by 15.1% to 6.33p a share.
Total client assets were up 0.7% in the period to £8.79bn and gross discretionary assets under management were 0.9% higher at £2.36bn.
The group said revenue growth in the period was slightly lower than expected due to a reduction in clients' costs and general market conditions.
Chief executive officer Ian Mattioli said: "While there remains uncertainty around Brexit it will continue to impact markets and consumer confidence. Our integrated model means we are well-positioned to proactively advise our clients and we anticipate we may see an increased demand for advice once the shape of Brexit becomes clearer.
"Unlike many wealth managers, the majority of the group's revenues are fee-based, rather than being linked to the value of assets under management, administration or advice, giving our business a revenue profile that is less sensitive to market performance.
"Although there is some caution around markets, we believe the group is well placed to secure further growth, both organically and by acquisition, and further consolidation within our core markets remains likely. We continue to manage our clients' assets and the group's cost base with care. 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."
At 1115 GMT, the shares were down 0.5% to 734p.