7th Jan 2019 08:44
LONDON (Alliance News) - Wealth manager Mattioli Woods PLC said Monday its earnings margin in the first half was "substantially" ahead of its 20% target and its full year profit outlook is in line with management expectations.
Mattioli Woods said its total client assets at the end of the first half, November 30, was GBP8.80 billion. At the end of May, Mattioli Woods' total client assets stood at GBP8.73 billion.
The company's gross discretionary assets under management at the end of the period was GBP2.40 billion compared to GBP2.34 billion at the end of May.
"I am pleased to report the first half of this financial year represented a period of further sustainable profit growth in a complex market, notwithstanding a lower level of client activity over the last six months due to generally poor investment sentiment and prolonged uncertainty over Brexit," said Chief Executive Ian Mattioli.
Mattioli Woods does expect "slightly lower" revenue growth in the first half, however. The company attributed this to a combination of reducing client costs and "general market conditions".
The drop in revenue was "more than" offset by Mattioli Woods' "strong" profit growth and its earnings before interest, tax, depreciation and amortisation margin for the period "substantially" exceeding its 20% target.
The firm's "continued focus on operational efficiencies" and other administrative cost savings were attributed for the profit growth.
Mattioli Woods said a positive contribution from Broughtons Financial Planning, which was acquired in August, added profit in the period.
CEO Mattioli added: "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. 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."
The asset manager said it will release its first half results on February 5.
Shares in Mattioli Woods were down 2.3% Monday at 645.00 pence each.
Related Shares:
MTW.L