3rd Sep 2019 09:36
(Alliance News) - Wealth manager Mattioli Woods PLC on Tuesday reported an annual rise in assets as the company reported growth in the number of pensions held in trusteeship.
At May 31, the wealth manager's assets under management, administration & advice stood at GBP9.38 billion, 7.4% higher than the GBP8.73 billion recorded a year earlier.
Excluding 49%-owned Amati Global Investors, Mattioli's assets under management, administration & advice grew 6.3% to GBP8.97 billion.
Mattioli Woods saw GBP152.8 million in total net inflows, including market movements. Acquisitions during the period added a further GBP500.5 million in assets.
"Recent acquisitions are performing and integrating well, with the financial result for the year including positive contributions from Broughtons and SSAS Solutions, which were acquired in August 2018 and March 2019 respectively. With continuing consolidation across the key markets in which we operate, we expect there will be further opportunities to accelerate our growth by acquisition," said Chief Executive Ian Mattioli.
Mattioli Woods noted the majority of its revenue is fee-based, rather than linked to the value of its assets under management. The wealth manager said this means its revenue is "less sensitive" to market performance.
The company's Self-Invested Personal Pension, SIPP, and Small Self Administered Scheme, SSAS, assets under management increased by 10% over the twelve months to GBP6.05 billion.
The growth was attributed to a 5.6% increase in the number of schemes being administered at year end, comprising 3.7% growth in the number of direct schemes to 6,051 and 7.9% growth in the number of schemes Mattioli operates on an administration-only basis to 5,068.
Mattioli's pretax profit increased 4.1% in financial 2019 to GBP10.2 million from GBP9.8 million the year before. Revenue was broadly flat at GBP58.5 million.
The wealth manager said "general market conditions", resulting in reduced levels of investment from clients", led to the "marginally lower than expected" revenue. This was offset, however, by Mattioli's improved operating margin - ending the year at 16.8% versus 16.4% the year before.
Mattioli upped its total dividend by 18% to 20.00 pence from 17.00p the year before.
Mattioli added: "We continue to streamline our business, drive increased efficiency and reinforce our purpose to grow and preserve our clients' assets, while giving them control and understanding of their overall financial position.
"Uncertainty around Brexit will continue to impact investor and consumer sentiment in the short-term, but we are confident that our focus on addressing the changing needs of our clients will position us well to deliver future growth and continued sustainable shareholder returns."
Shares Mattioli Woods were down 0.1% in London on Tuesday at 747.00 pence each.
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