19th Feb 2008 07:00
Mattioli Woods PLC19 February 2008 Press Release 19 February 2008 Mattioli Woods plc ("Mattioli Woods" or "the Company") Acquisition of the JB Group Mattioli Woods plc (AIM: MTW.L), the specialist pensions consultancy, announcesit has acquired the trade and assets of John Bradley Financial Services ("JBFS")and North Star SIPP LLP ("North Star") (together "the JB Group") for a totalconsideration of up to £2.59 million, subject to certain revenue and clientretention targets being met during the three years following completion. Established in 1989 by John Bradley, a former Chairman of the Association ofMember-Directed Pension Schemes ("AMPS"), the JB Group operates from two officesin Lutterworth, near Leicester. JBFS provides pensions consultancy andadministration services to a core active portfolio of 235 smallself-administered pension scheme ("SSAS") and 55 self-invested personal pension("SIPP") clients, with an average scheme value of over £0.5 million. The JBGroup also provides third party administration services to more than 300additional SSAS and SIPP clients, with total funds under trusteeship of over£400 million. The JB Group's experienced team of three consultants and 22 administration staffwill be retained by Mattioli Woods following the acquisition. On 18 February 2008 the Company also entered into separate agreements to acquirethe entire issued share capital of JB Trustees Limited and Bank Street TrusteesLimited (together "the Trustee Companies") and John Bradley Financial ServicesLimited (together with the Trustee Companies "the Dormant Companies") for anominal consideration. North Star was established in October 2006 and subsequently authorised by theFinancial Services Authority ("FSA") to establish and operate personal pensionschemes, including SIPPs, under the new regulatory regime introduced on 6 April2007. The Trustee Companies act as trustees to the pension schemes. TheDormant Companies have never traded and have negligible net assets in aggregate. The total consideration consists of an initial payment of £1.25 million fundedfrom the Group's existing cash resources and deferred consideration of up to£1.34 million, of which £0.64 million will be paid in the three years followingcompletion, with the remaining payment of up to £0.70 million being determinedwith reference to an earn-out mechanism based on revenues generated during thethree years following completion. In the year ended 31 March 2007 the JB Group generated a net profit of £0.40million before partners' salaries and drawings, on revenues of £1.37 million.The JB Group's net assets at 31 March 2007 were £0.51 million. The acquisitionis expected to be earnings enhancing in the first full year of ownership. Commenting on the acquisition, Ian Mattioli, Chief Executive of Mattioli Woods,said: "I am delighted to announce our acquisition of the JB Group. John Bradley is ahighly-regarded industry figure who is recognised as having made a significantcontribution to the development of self-invested pensions through his work withAMPS. In common with Mattioli Woods, the JB Group's core business is focused onattracting clients who require bespoke personal service and specialist advice.This acquisition gives us the opportunity to eliminate overheads that areduplicated between the two businesses and offer additional services that benefitMattioli Woods' clients, such as our syndicated property initiative andguaranteed investment products, to the JB Group's existing client base.Bringing the experience and technical ability of John Bradley and his partnerMike Norris into Mattioli Woods further enhances our consultancy offering andconsolidates our position in what remains a highly fragmented market. We expectdemand for bespoke pensions consultancy and administration in the SSAS and SIPPmarket to continue to grow. Expanding our presence by acquisition continues tobe an important element of our strategy to capitalise on this." - 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:Abchurch CommunicationsSarah Hollins / Louise Thornhill Tel: +44 (0) 207 398 [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 SIPP and SSASschemes, advice on related business affairs, including pension investmentservices and the facilitation and administration of syndicated property schemes.Its focus is at the higher end of the market where clients require bespokeservice and specialist advice. Mattioli Woods listed on the AIM market on 23 November 2005. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
MTW.L