9th Aug 2018 10:43
LONDON (Alliance News) - Wealth management firm Mattioli Woods PLC said Thursday it has acquired West Midlands-based peer Broughtons Financial Planning Ltd for up to GBP4.0 million.
Mattioli Woods will pay an initial GBP2.7 million, of which GBP2.1 million will be in cash and the remainder paid through the issue of 77,171 shares.
A further GBP1.3 million deferred consideration is payable in cash should Broughtons hit profit targets over the two years following completion.
For its year ended July 2017, Broughtons generated GBP620,000 in pretax profit on revenue of GBP990,000. The firm also has GBP120 million of assets under advice for 250 individual clients.
For comparison - for the year ended May 2017 - Mattioli Woods generated GBP7.6 million pretax profit on revenue of GBP50.5 million.
After acquisition, the Broughtons management team will remain at the firm. The buy is expected to be earnings enhancing from the first full year of ownership.
"Broughtons has a similar culture to Mattioli Woods and holds high values with the client being at the core of all it does," Mattioli Woods Chief Executive Officer Ian Mattioli said.
"The combined business gives us all opportunities to grow and develop the client offering. Long term stability and sustainability is key to growing a modern financial services group and we will all continue to strive to achieve this".
Shares in Mattioli Woods were untraded on Thursday, last quoted at 772 pence each.
Related Shares:
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