10th Jul 2007 07:01
Mattioli Woods PLC10 July 2007 Press Release 10 July 2007 Mattioli Woods plc ("Mattioli Woods" or "the Group") Acquisition of Pension Consulting Limited Mattioli Woods plc (AIM: MTW.L), the specialist pensions consultancy, todayannounces that it has acquired the entire issued share capital of PensionConsulting Limited ("PCL") for a total consideration of up to £1.925 million,subject to PCL's net assets at completion including a net cash balance of notless than £0.15 million. Established in 1999 and based in Leicester, PCL administers pension schemes onbehalf of 145 small self-administered pension scheme ("SSAS") and 213self-invested personal pension ("SIPP") clients. It has funds under trusteeshipof over £185 million and its subsidiary company, PC Trustees Limited, acts astrustee to the schemes. PCL's experienced team of two consultants and 11administration staff will be retained by the Group following the acquisition. In the year ended 31 May 2007, PCL generated a profit on ordinary activitiesbefore taxation of £0.30 million on revenues of £0.81 million. The acquisitionis expected to be earnings enhancing in its first full year. PCL's net assetsat 31 May 2007 were £0.32 million. The total consideration includes an initial payment of up to £1.525 millionfunded from the Group's existing cash resources and deferred consideration of upto £0.4 million, of which £0.24 million will be paid in the two years followingcompletion, with the remaining payment of up to £0.16 million being determinedwith reference to an earn-out mechanism based on growth in scheme numbers duringthe two years following completion. Commenting on the acquisition, Ian Mattioli, Chief Executive of Mattioli Woods,said: "I am very pleased to announce our acquisition of PCL. Demand for pensionsconsultancy and administration in the SSAS and SIPP market is increasingstrongly. As previously stated, it is the Board's intention to consolidateMattioli Woods' position in this fragmented market. Growing our presence byacquisition will continue to be an important element of our strategy for futuregrowth. "PCL is a good cultural fit with Mattioli Woods. Like Mattioli Woods, PCL hasfocused on attracting clients who require bespoke personal service andspecialist advice. PCL does not provide the broad range of services thatbenefit Mattioli Woods' clients and this provides the platform to offeradditional services, such as our syndicated property initiative and guaranteedinvestment products, to PCL's existing client base. "The acquisition will enhance our service offering by consolidating bestpractice across the enlarged Group, implementing improvements in administrationsystems to realise operational efficiencies. "The Board of Mattioli Woods remains confident that our growth strategy, basedon a combination of specifically targeted acquisitions and organic growth,including the introduction of innovative new products, continues to be the mosteffective way to deliver the increasingly tailored solutions our clients demand." - Ends - For further information please contact: Mattioli Woods plcBob Woods, Executive Chairman Tel: +44 (0) 116 240 [email protected] www.mattioli-woods.com Ian Mattioli, Chief Executive Tel: +44 (0) 116 240 [email protected] www.mattioli-woods.com Nathan Imlach, Finance Director Tel: +44 (0) 116 240 [email protected] www.mattioli-woods.com Evolution Securities LimitedJoanne Lake, Corporate Finance Tel: +44 (0) 113 243 [email protected] www.evosecurities.com Media enquiries:AbchurchHelen Spivey/ Emma Johnson Tel: +44 (0) 113 203 [email protected] www.abchurch-group.com Note to editors: Mattioli Woods Mattioli Woods was established in 1991 by Ian Mattioli and Bob Woods. The Groupprovides pensions consultancy and administration services primarily toowner-managers, senior executives and professionals. Mattioli Woods' keyactivities include complex pensions consultancy, the provision of self-investedpersonal pensions ("SIPP") and small self-administered pension schemes ("SSAS"),advice on related business affairs, including pension investment services andthe facilitation and administration of syndicated property schemes. Its focusis at the higher end of the market where clients require bespoke service andspecialist advice. Mattioli Woods listed on the AIM market on 23 November 2005. Pension Consulting Limited Pension Consulting Limited, formed in 1999, is a financial services companyspecialising in providing pension consultancy services to high net worthindividuals. Its services are principally provided in conjunction with existingadvisers to individuals and companies. Pension Consulting Limited has its own professional trustee company, PC TrusteesLimited, which is authorised by the Financial Services Authority ("FSA") toprovide and administer self invested personal pensions. PC Trustees Limited isa member of the Association of Member-Directed Pension Schemes ("AMPS"), a mainfunction of which is to maintain an ongoing dialogue with HM Customs & Excise tohelp shape and interpret Inland Revenue practice for pension schemes. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
MTW.L