Trading Update and Notice of Final Results

RNS Number : 9495H

Mattioli Woods PLC

27 June 2013

 



27 June 2013

Mattioli Woods plc

("Mattioli Woods" or "the Group")

Trading Update and Notice of Final Results

Mattioli Woods plc (AIM: MTW.L), the specialist pensions consultancy and wealth management business, today issues the following trading update in advance of its final results for the financial year ended 31 May 2013, which are to be announced on Wednesday, 28 August 2013. 

Highlights

·      Total assets under administration and advice of £3.6bn, up 20% on prior year

·      Appointed to operate The HD SIPP in June 2013

·      Acquisition of Ashcourt Rowan's pension business in April 2013

·      Launch of "Create" flexible employee benefits in March 2013

·      Discretionary portfolio management launched in August 2012

·      Further investment planned in IT and group infrastructure

·      Well positioned for growth going forward

Bob Woods, Executive Chairman, comments:

"I am pleased to report another year of profitable growth in line with our expectations, particularly as the period embraces the first five months of the post-Retail Distribution Review ("RDR") era.  I've said before that the RDR will drive fundamental change in our sector, creating enormous opportunities for the 21^st century financial services business that can deliver proactive advice with professional products and services. 

"Many commentators have predicted a frenzy of acquisitions as the advisory market consolidates post-RDR.  In addition, proposed increases in the regulatory capital requirement for operators of self-invested personal pensions ("SIPPs") is driving consolidation in another of our core markets and we were pleased to acquire the pension administration business of Ashcourt Rowan plc ("Ashcourt Rowan") in April 2013. 

"Today, I am delighted to announce our appointment to operate the HD SIPP, which is estimated to have around 40 active members.  Following on from our appointments to the Freedom SIPP and the Pilgrim SIPP, we have worked closely with The Insolvency Service, the Financial Conduct Authority and HM Revenue & Customs to secure the scheme's on-going viability following the failure of the previous operator. 

"The Group's total assets under administration and advice increased to £3.6 billion at the year-end, up 20% on the prior year, primarily due to additional funds under trusteeship of £302 million acquired with Ashcourt Rowan's pension business and £113 million secured on our appointment to the Pilgrim SIPP, coupled with net organic growth of £107 million in Mattioli Woods' core pension business. 

"The launch of our portfolio management service in the first half was an important step forward in providing wider wealth management services to our clients.  Our discretionary proposition has attracted over £180 million of assets under management since 1 September, increasing our recurring revenues and delivering better service to clients. 

"The RDR has changed the nature of our investment advisory revenues and I believe the move from provider commissions to adviser fees based on assets under advice enhances the quality of our earnings.  The fall in LIBOR rates over the last 18 months will lead to lower banking revenues in this new financial year, but I expect this to be partially offset by demand for advice on investment into other asset classes. 

"The Government recently announced the end of consultancy charging in auto-enrolment schemes and it plans to publish a consultation this autumn, including proposals to cap default fund charges in Defined Contribution schemes.  Although there is some uncertainty around the impact of these proposals, there is clear demand for progressive employers to create cost-effective and engaging employee benefits plans.  Following the launch of our flexible employee benefits service "Create" in March 2013 we are well-placed to take advantage of these new opportunities. 

"We plan further investment in information technology and recruitment over the next 12 months and were delighted to announce the appointment of Michael Crowe as Group Head of Human Resources last month.  Michael offers proven experience delivering commercially-valued HR solutions as we look to continue building our business. 

"The development of the Group's wider capabilities, combined with changes in our key markets, make this an exciting time.  We continue to explore further acquisitions.  Equally, I expect our ability to sustain strong organic growth through cost-effective distribution to be a key differentiator.  I have enormous conviction in our strategy and look forward to us delivering first class services to our clients and further sustainable growth to our shareholders over the coming year." 

Notice of Final Results

Mattioli Woods will be announcing its final results for the year ended 31 May 2013 on Wednesday, 28 August 2013. 

An analyst briefing given by Bob Woods, Executive Chairman, Ian Mattioli, Chief Executive and Nathan Imlach, Finance Director will be held at 09:30 hrs on 28 August 2013 at FTI Consulting, Holborn Gate, 26 Southampton Buildings, London, WC2A 1PB.  Those analysts wishing to attend are asked to contact Jack Hickey at FTI Consulting on [phone] or at [e-mail].

- Ends -

For further information please contact:

Mattioli Woods plc
Bob Woods, Executive Chairman	Tel: [phone]
[e-mail]	www.mattioli-woods.com
Ian Mattioli, Chief Executive
[e-mail]
Nathan Imlach, Finance Director
[e-mail]

Canaccord Genuity Limited
Martin Green	Tel: [phone]
Bruce Garrow	www.canaccordgenuity.com

Notes to editors

Mattioli Woods is one of the UK's leading and fastest growing providers of specialist pension consultancy and wealth management, with total assets under advice and administration in excess of £3.6 billion.  Its core services and advice are targeted towards the higher end of the market including controlling directors, professionals, owner-managed businesses and small to medium-sized PLCs. 

The Group is focused on the application and administration of self-invested personal pensions ("SIPPs"), small self-administered pension schemes ("SSASs"), personal investment and estate planning, with around 6,000 pension fund clients throughout the UK.  For corporate clients we provide a comprehensive range of employee benefits services. 

Mattioli Woods delivers the highest level of personal advice, maintaining very close relationships with all its clients.  The strength of its personal relationships has led to high levels of client satisfaction, retention and referrals.  The Group provides the following services:

·     Pensions and investment consultancy

·     Personal wealth management

·     Bespoke pension scheme administration and trusteeship, particularly for SIPP, SSAS and Group schemes

·     In-house investment research and broking

·     Property syndication, through Custodian Capital Limited

·     A range of employee benefits services, through Kudos IFS Limited

·     Structuring of investment products tailored to a particular client's needs

·     Assistance and advice with securing preferential banking arrangements

For more information, please visit www.mattioli-woods.com, www.custodiancapital.com, www.citytrustees.co.uk and www.kifs.co.uk. 

 

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