Wealth management and employee benefit adviser Mattioli Woods has released record interim results.
It has also acquired Maclean Marshall Healthcare.
Financial highlights included revenue up 20.0% to £19.90m (first half 2015: £16.59m) and an adjusted EBITDA up 18.4% to £4.32m (£3.65m). Adjusted EPS was up 8.5% to 14.65p (13.50p) and interim dividend was up 15.3% to 3.85p (3.34p). The company has net cash of £22.64m (£7.70m).
Last month the company acquired Maclean Marshall Healthcare, a specialist healthcare and protection business based in Aberdeen. The deal brings with it an experienced manager and around 80 new corporate clients. This latest deal adds to the two other acquisitions completed in the period, with total initial considerations of £6.16m cash, plus £3.70m shares, and deferred considerations of up to £5.80m payable in cash.
CEO Ian Mattioli said: “We are delighted to report further strong growth in the first half of this financial year. We grew revenue by 20.0% and saw our discretionary assets under management pass the £1bn milestone, growing by over 24.1% to £1.08bn, despite the adverse impact of volatile investment markets on equity and bond values.
“In our wealth management business, the positive impact of new business wins and recent acquisitions more than offset a £0.66m fall in banking income, following the further cuts in interest margin we had anticipated. Strong demand for advice and the continued development of our consultancy team has driven increased new business flows, which together with the three acquisitions completed during the period increased total client assets under management, administration and advice by 29.5% to £6.49bn.
“Our subsidiary, Custodian Capital, is the discretionary investment manager of Custodian REIT plc, which continues to be a great success and raised over £58.6m of new monies during the period. We continue to drive exciting growth in our property management business, enhancing the Group’s recurring revenues, which were 81.6% for the period.
“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. In June 2015 we raised gross proceeds of £18.6m by way of a placing to allow us to pursue further acquisitions. We have put that money to good use by acquiring Boyd Coughlan, the Taylor Patterson Group, Lindley Trustees’ pension business and, as announced today, Maclean Marshall Healthcare. Maclean Marshall Healthcare is a specialist healthcare and protection business, which introduces an experienced manager and around 80 new corporate clients to the Group, adding further scale to our employee benefits business.
“We believe further consolidation in the SIPP market remains likely, with increased regulatory capital requirements for SIPP operators coming into effect from 1 September 2016. The balance of funds raised by way of the placing gives us the flexibility to make further value-enhancing acquisitions.”
“As previously reported, Bob Woods will stand down as Executive Chairman in October 2016, and has decided to stand down from the Board at the same time to allow him to focus on the things that have made Bob and the business such a great success. Bob has been instrumental to the success of the Group and in this new role we will continue to benefit from his experience and insight. The period from now to the Annual General Meeting provides for a considered handover of Bob’s Board responsibilities to our Deputy Chairman, Joanne Lake.
“We are proud of the strong shareholder returns we have delivered over the 10 years since Mattioli Woods’ admission to AIM. The Group’s strong performance during the first half has allowed the Board to recommend the payment of an increased interim dividend, up 15.3% to 3.85 pence per share.
“Against a backdrop of volatile financial markets, regulatory and legislative change, in the second half of this financial year we expect sustained demand for advice from clients, offsetting any impact lower asset values have on investment-related revenues.
“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.
Executive Chairman Bob Woods (pictured above) said: “I am proud of the business I have helped create. Over the last 25 years a large part of our advice has been to assist our clients with their long term investment and succession planning. Given the strong positioning of the Group and the experienced management team we have in place, I now intend to stand down from the Board in October but will remain in a full-time executive role. My focus will be on acting as an ambassador for Mattioli Woods, new business development and my existing client portfolio.
“I believe the Group is well placed for the next phase of its evolution.”