19th Jun 2015 08:37
LONDON (Alliance News) - Financial adviser Mattioli Woods PLC Friday said it will raise up to GBP18.6 million through the placing of shares as it looks to make acquisitions, and it said that business in the current financial year has grown in line with expectations.
The issue will be via the firm placing of up to 2 million shares and a conditional placing of up to 1.8 million shares at 490 pence each, with the latter conditional, among other things, upon the passing of a resolution at its general meeting on July 7, Mattioli said.
Shares in Mattioli Woods were trading up 1.0% at 519.36 pence Friday morning.
Mattioli also said it has conditionally agreed to acquire financial adviser Boyd Coughlan for up to GBP7 million to be paid partly in cash and partly through the issue of consideration shares. Of the initial consideration of GBP4.5 million, GBP3.3 million is in cash and GBP1.2 million in shares, consisting of 235,742 shares at 509p each. The remaining GBP2.5 million will be paid in cash over two years.
Boyd Coughlan has over GBP160 million in assets, and the acquisition is expected to be earnings enhancing in the first full year of ownership.
Mattioli said that the another potential acquisition opportunity has been identified for which non-legally-binding heads of terms have been signed.
"Boyd Coughlan is an excellent strategic fit, offering real synergies with the wider group. The acquisition gives us the ability to offer our pension, property and investment products to Boyd Coughlan's clients and to offer enhanced employee benefits services to Mattioli Woods' clients, strengthening our market position," Chief Executive Ian Mattioli said in a statement.
"It is our ambition to continue expanding Mattioli Woods' operations both organically and by acquisition. All our acquisitions completed to date have been earnings enhancing and have broadened or deepened the group's expertise and services. Raising capital now will give us the flexibility to pursue both existing and new acquisition opportunities as they arise," he said.
Mattioli added that business in its current financial year has grown in line with expectations, with total client assets under management, administration and advice having increased by 17% to GBP5.4 billion at May 31, 2014, of which discretionary assets under management accounted for over GBP1 billion.
It said that its has seen strong growth in its core pension and wealth management business, boosted by the government's new pension freedoms more than offsetting falls in banking income, and said that the recent acquisitions of the UK Wealth Management and Torquil Clark pensions businesses are integrating well.
Mattioli will release its full-year results on September 9.
"I am delighted with the performance of our business in what has remained a rapidly-changing market. The government's pension reforms have repositioned pensions at the forefront of financial planning, which together with the continued development of our consultancy team has driven strong growth in wealth management," Mattioli said.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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