Mattioli Woods hikes dividend after solid year of trading
Specialist wealth and asset manager Mattioli Woods reported total client assets of £14.9bn in its final results on Tuesday, up 23.1% year-on-year.
The AIM-traded firm said revenue increased 72.8% for the 12 months ended 31 May, to £108.2m, with organic revenue growth up 10% to £62.2m.
It recorded a positive contribution from acquisitions of £46.1m, compared to £6m in 2021, with new client wins increasing to 1,084 from 898, which the company put down to its investment in business development initiatives.
Recurring revenues represented 86.8% of total revenue, down from 92.7%, which the board put down to contributions from Maven Capital Partners and increased initial client fees.
Adjusted EBITDA increased 88.4% to £32.6m, including its post-tax profit of its associate Amati Global Investors, which grew 45.5% to £1.6m.
Mattioli Woods said its adjusted EBITDA margin rose to 30.1% from 27.7%, while adjusted earnings per share rose 17.5% to 48.3p, growing organically and through accretive acquisitions.
The board proposed a final dividend of 17.8p, up from 13.5p year-on-year, giving a total dividend rise of 24.3% to 26.1p per share.
Mattioli Woods said it was in a “strong” overall financial position, with £53.9m of cash as at 31 May, up from £21.9m a year ago.
Looking ahead, the company said its strategic goals continued to be to grow its operations towards £300m of revenues, £30bn of total client assets, and £100m of EBITDA.
"We plan to maintain this positive momentum, advancing our strategic initiatives - new business generation, growth through the integration of acquisitions, developing new products and services, reviewing our processes and investing in technology to deliver an improved client experience and further operational efficiencies,” said chief executive officer Ian Mattioli.
“Investment markets are likely to remain volatile for some time, although the spectre of rising inflation typically creates significant advice opportunities given our diverse revenue streams and for further investment inflows as existing and prospective clients consider appropriately investing surplus cash to avoid suffering an erosion in value of savings in real terms.”
Mattioli said the outlook for the new financial year remained positive, notwithstanding continuing challenging macroeconomic conditions, as the firm continued to trade in line with expectations.
“As previously disclosed, cost inflation and progressing our strategic initiatives including investment in people and technology are expected to impact margins in the short term but will position us to secure future growth in revenue and profits.
“This will also provide opportunities to deliver future growth and sustainable shareholder returns as a business that is here for the long term.”
At 1044 BST, shares in Mattioli Woods were up 3.12% at 660p.
Reporting by Josh White at Sharecast.com.