Acquisition of Kudos
|
|
30 August 2011 |
Mattioli Woods plc
("Mattioli Woods" or "the Group")
Acquisition of Kudos
Mattioli Woods plc (AIM: MTW.L) is pleased to announce the acquisition of the entire share capital of TCF Global Independent Financial Services Limited ("TCF") and its subsidiary Kudos Independent Financial Services Limited ("Kudos") from its shareholders ("the Sellers") for a total consideration of up to £8.69 million, to be satisfied partly in cash and partly through the issue of 462,572 new ordinary shares of 1p each in Mattioli Woods. The cash consideration is payable in part on completion and in part over the period of three years following completion, subject to certain earnings and revenue targets being met. The initial cash consideration is being funded from the Group's existing resources and results in a cash outflow at completion of £2.40 million, including deal costs and net of estimated cash acquired in Kudos at completion.
TCF is the holding company of Kudos, an employee benefits and wealth management business founded in 1991. Based in Aberdeen, Kudos employs 45 staff with offices in Glasgow and London, providing advice to both high net worth individuals and companies on all aspects of financial planning. Kudos' experienced management team will be retained by Mattioli Woods following the acquisition, which is expected to be earnings enhancing in this current financial year ending 31 May 2012.
In the year ended 30 September 2010, Kudos generated a profit before taxation of £534,817 on revenues of £4,257,891. At 30 September 2010 TCF's net assets (equivalent to Kudos' net assets at the same date) were £1,278,061. The acquisition provides Mattioli Woods with a strong employee benefits proposition at a time when the introduction of the National Employment Savings Trust ("NEST") and auto-enrolment present clear opportunities. In addition, Kudos offers the enlarged Group the opportunity to extend the provision of SIPPs to a wider audience and adds a specialist wealth management business to Mattioli Woods' existing operations.
The total consideration consists of an initial consideration of £3.94 million, comprising £2.75 million in cash and 462,572 ordinary shares in Mattioli Woods ("the Consideration Shares", which are valued at £1.19 million based on the closing price of a Mattioli Woods share on 26 August 2011), plus deferred consideration of up to £4.75 million payable in cash in the three years following completion if certain financial targets are met based on growth in recurring revenues and earnings before interest, tax, depreciation and amortisation generated during that period. Application for admission to AIM of these 462,572 new ordinary shares ("Admission") has therefore been made and it is anticipated that such Admission will occur on 1 September at 7.00 a.m.
The Sellers have entered into a lock-in deed with Mattioli Woods and its nominated adviser and broker, Canaccord Genuity Limited, restricting sales of the Consideration Shares during the three years following completion.
Commenting on the acquisition, Ian Mattioli, Chief Executive of Mattioli Woods, said:
"The acquisition of Kudos is an excellent cultural and strategic fit with Mattioli Woods, offering real synergies for both organisations. These synergies include the ability to promote additional services to existing and prospective clients of each business. We expect the enlarged Group to capture new business opportunities through our combined introducer networks. In addition to extending our geographic footprint, the acquisition gives us the ability to offer our core SIPP, property and investment products to Kudos' clients and to offer enhanced employee benefits services to Mattioli Woods' clients and the wider market.
"The Kudos team has a proven ability to win high-quality new business and the transaction gives us an exciting new distribution channel for Mattioli Woods' services. I believe this will strengthen our position in a market in which I expect to see advice-led services at a premium. This is an exciting step forward in the development of the Group as a broader wealth management business. It is our ambition to continue expanding Mattioli Woods' operations both organically and by acquisition."
Jim Tennent, Chief Executive of Kudos, commented:
"Joining the Mattioli Woods Group offers valuable opportunities for clients and employees in both organisations. The enhanced scale of the business gives us the ability to provide additional value-added services to clients of both firms from "cradle to grave" and strengthens our holistic approach to the provision of wealth management and employee benefits advice."
- Ends -
For further information please contact:
|
Mattioli Woods plc |
|
|
Bob Woods, Executive Chairman |
Tel: +44 (0) 116 240 8700 |
|
Ian Mattioli, Chief Executive |
Tel: +44 (0) 116 240 8700 |
|
Nathan Imlach, Finance Director |
Tel: +44 (0) 116 240 8700 |
|
Canaccord Genuity Limited |
|
|
Gordon Neilly |
Tel: +44 (0) 20 7050 6778 |
|
gneilly@canaccordgenuity.com |
www.canaccordgenuity.com |
|
|
|
|
Simon Bridges |
Tel: +44 (0) 20 7050 6742 |
|
sbridges@canaccordgenuity.com |
www.canaccordgenuity.com |
Media enquiries:
|
Financial Dynamics Limited |
|
|
Georgina Turner |
Tel: +44 (0) 20 7269 7136 |
|
georgina.turner@fd.com |
|
Mearns & Gill Public Relations |
|
|
Dick Mutch |
Tel: +44 (0) 7710 872425 |
|
www.mearns-gill.com |
Notes to editors
About Mattioli Woods:
Mattioli Woods is one of the UK's leading and fastest growing providers of specialist pension consultancy and wealth management. Its core services and advice are targeted towards the higher end of the market including controlling directors, professionals, executives, owner-managed businesses and small to medium-sized PLCs.
The Group has focused particularly on advice on the application and administration of SIPPs and SSASs, with a strong core of over 4,000 self-invested personal pension ("SIPP") and small self-administered pension scheme ("SSAS") clients throughout the UK. Following the acquisition of Kudos, the Group's SSAS, SIPP, employee benefits and personal assets under administration and advice now total in excess of £2.8 billion.
Mattioli Woods has a focus on providing the highest level of personal service, 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.
For more information, visit www.mattioli-woods.com.
About Kudos:
Kudos Financial Services was established in Aberdeen in 1991 and also has offices in Glasgow and London, providing advice and services nationally and internationally through three divisions: Employee Benefits; Due Diligence, and Wealth Management.
For further information, visit www.kifs.co.uk.
This information is provided by RNS
Latest directors dealings
- 12 hours ago ASOS
- 12 hours ago MJ Gleeson
- 12 hours ago Rolls-Royce Holdings
- 13 hours ago Crest Nicholson Holdings
- 13 hours ago Naked Wines