4th Jul 2019 09:32
(Alliance News) - Wealth manager Mattioli Woods PLC on Thursday said it recorded strong growth in adjusted pretax profit for the financial year that ended May 31.
As of that date, the company had gross discretionary assets under management of GBP2.6 billion and net inflows of GBP250.0 million during the recent year. Total client assets rose to GBP9.4 billion between Mattioli Woods and its associate Amati Global Ltd.
In financial 2018, Mattioli Woods reported pretax profit of GBP9.8 million on revenue of GBP58.7 million.
Mattioli Woods said it lower costs for its clients while still maintaining an earnings before interest, tax, depreciation and amortisation margin of 20%.
However, this effort to lower fees, coupled with difficult market conditions, led to "slightly lower than expected" revenue for the year. The company said it was able to offset this to maintain the 20% margin and profit growth through operating efficiencies and administrative cost cuts. One such savings was the move to a new freehold office in Leicester, which will cut GBP850,000 per year from the company's rent bill.
Chief Executive Ian Mattioli said: "I am pleased to report another year of sustainable profit growth, despite the ongoing political and economic uncertainties and generally poor investor sentiment over the 12 months ended 31 May 2019."
CEO Mattioli also said that two recent acquisitions - pension trust SSAS Solutions Ltd and wealth management firm Broughtons Financial Planning Ltd, each acquired for GBP4.0 million - are performing well.
The company also announced it has appointed a new chief compliance officer, James Wilson, and a new finance director, Ravi Tara. As well, Managing Director Murray Smith will leave following October's annual general meeting. Smith, who will be replaced by his deputy Michael Wright, will depart the board but remain as a founder director and a company ambassador.
Wilson has had more than 30 years worth of experience in financial services, including roles at the Royal Bank of Scotland Group PLC and Tara. He also has held operational roles with investment bank Barclays Capital and food producer Weetabix Ltd. His position will be a first for the company.
Last month, the company received GBP750,000 after investors Amati Partners LLP purchased the option to cancel Mattioli's GBP3.3 million acquisition of its subsidy Amati Global Investors.
Mattioli Woods will release final results for the recent financial year on September 3
The stock was down 2.3% at 774.00 pence in London on Thursday morning.
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