19th Dec 2006 07:00
Mattioli Woods PLC19 December 2006 Press Release 19 December 2006 Mattioli Woods plc ("Mattioli Woods" or "the Group") Trading Update Mattioli Woods plc, the specialist pensions consultancy, today issues thefollowing trading update in advance of its Interim Results for the six monthsended 30 November 2006, which are to be announced on 20 February 2007. Bob Woods, Executive Chairman, comments: "I am delighted to report continued turnover growth, as expected, over the lastsix months. This has been coupled with stronger operating margins, resulting intrading for the period being slightly ahead of expectations. We are operatingin a sector that has been stimulated by legislative changes and stronginvestment markets. These factors, together with ongoing demand forself-invested personal pensions ("SIPPs"), have resulted in the anticipatedincrease in our time-costed fees compared to the same period last year. "We are delighted the Government has endorsed the abolition of annuity purchase.However, we believe the Government has missed an opportunity to create theenvironment for a "family pension fund" by announcing proposals to introduce anew tax charge in the event of death after the age of 75. Overall, we expectthese proposals to widen planning opportunities for our clients. "We are already seeing not only a substantial increase in inheritance taxplanning linked to pensions but also more sophisticated pension planning ingeneral. These factors are expected to increase demand for our bespoke pensionconsultancy services. Consequently, we expect revenues in the second half tocontinue to grow. "In response to our clients' desire for a variety of investment opportunities,recent Mattioli Woods' initiatives include syndicated property investments andcapital-guaranteed bonds linked to some of the world's most dynamic stockmarkets. Both of these products have performed strongly, with some £9.6 millionof property transactions completed in the first half and our second guaranteedbond issue closing over-subscribed. We have a solid pipeline of new propertyinvestment opportunities, and already contracts have been exchanged for afurther £4.4 million of syndicates. A series of further capital-guaranteed bondissues is also planned over the next twelve months. "We are greatly encouraged by the successful integration of the acquisitionsmade to date, with both the acquired portfolios generating increased revenues.This gives us the confidence to actively seek further acquisition opportunities. "Maintaining capacity remains crucial in an environment of growing demand, andour recruitment programme remains on target. Seven new graduates have joinedthe Group since 1 June 2006, increasing our total headcount to 95. "Over the summer months, we carried out test marketing to ascertain the demandfor consultancy services to employers with final-salary schemes. Positivefeedback suggests this could become a new revenue stream in the years to come. "The Financial Services Authority's proposed regulation of SIPPs will come intoeffect in the spring of 2007. Regulation will create a barrier to new marketentrants on the back of increased capital adequacy requirements, and may lead tofurther consolidation in the sector. The proposed regulations will provide uswith greater flexibility in delivering SIPPs and other bespoke pension products. "We are confident we can achieve market expectations for the full year." - 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:AbchurchHeather Salmond/ Louise Thornhill Tel: +44 (0) 207 398 [email protected] www.abchurch-group.com Note to editors: 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. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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