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Mattioli Woods PLC (MTW)

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Friday 27 March, 2020

Mattioli Woods PLC

Covid-19 update

RNS Number : 6360H
Mattioli Woods PLC
27 March 2020
 

 

 

27 March 2020

 

Mattioli Woods plc

 

("Mattioli Woods", "the Company" or "the Group")

 

Covid-19 update

 

Mattioli Woods plc (AIM: MTW.L), the specialist wealth management and employee benefits business, provides the following update on the current and expected impacts of the Coronavirus (Covid-19) pandemic. 

 

Our primary concerns are playing our part in helping to manage the global health emergency and delivering an uninterrupted service to our clients and the wider community.  We continue to be fully operational throughout all our core business areas during this complex time, providing:

 

· Proactive advice through our team of 124 consultants;

· Specialist investment and pension administration through our 240 client relationship managers, utilising our proprietary MWeb pension administration platform and other external platforms;

· Asset management through our investment managers who are based all around the UK; and

· Products including SSAS, SIPPs and the bespoke investment services we have created over the last few years, including multi-asset funds, structured products, our Private Investors Club and Custodian REIT plc. 

 

We believe the benefits of operating a responsibly integrated business, combining all these core areas, will enable us to secure exceptional client outcomes despite the complex conditions we face.  

 

Our investment in our people, cloud-based technology and infrastructure has allowed us to move quickly to an operating model that includes implementing home working for over 600 of our staff and introducing specific shift rotations for those 30 people needed in our administration hubs spread across the country.  We are confident we can continue to deliver all our core services and maintain high service levels to clients throughout this period of disruption. 

 

The Group's financial performance in the first nine months of the current financial year was in line with the Board's expectations.  Whilst it is too early to predict what the full impact of Covid-19 will be, we do anticipate an inevitable disruption to trading in the coming months and an associated reduction in the Group's income streams linked to the value of clients' funds under management and advice and banking revenue.  However, unlike many wealth managers, the majority of the Group's revenues are fee-based, rather than being linked to the value of clients' assets, with our time-costed advice to clients set around the complexities we are all now facing and giving our business a revenue profile that typically is less sensitive to investment markets. 

 

Following the Bank of England's cut in the base rate to a historic low of 0.1%, our banking revenue is expected to be negligible going forward, compared to £0.4m (or less than 1% of revenue) for the nine months ended 29 February 2020.  

 

Ian Mattioli, Chief Executive Officer of Mattioli Woods, comments:

 

"In light of the uncertain trading conditions we are implementing mitigating actions to contain costs and protect our financial position.  Alongside this, I have chosen to reduce my basic salary to zero and all other plc Board directors have agreed to reduce their basic salary or fees by 50% until 30 June 2020, when we will review the position further.  I believe this position supports the Board's independence and ensures a strong governance framework.  In addition, we are reviewing our operating costs, restricting travel and reducing discretionary spending.  We have confirmed to all staff that it is likely no bonuses will be paid in respect of the current financial year, providing additional resources to address the impact of Covid-19. 

 

"Our profit outlook for the year ending 31 May 2020 remains in line with management's expectations.  The acquisition of Hurley Partners is subject to regulatory approval and is expected to complete in the second quarter of 2020.  The Group enjoys a strong balance sheet and following completion of the acquisition will continue to have significant cash balances and headroom on its regulatory capital requirements.  

 

"The Board is pleased to confirm the previously announced interim dividend of 7.3 p per share will be paid to shareholders today and the Board will consider how the global crisis evolves in formulating its recommendation for any final dividend. 

 

"The Board will continue to keep the market updated as the situation develops.  The Group remains in a strong financial position and we will continue growing our business when it is appropriate to do so. 

 

"We are passionate about looking after our clients' financial affairs and I hope all of our clients, staff, suppliers and shareholders come out of this crisis in the best possible shape ." 

 

- Ends -

 

 

For further information please contact:

Mattioli Woods plc


Ian Mattioli MBE, Chief Executive Officer

Tel: +44 (0) 116 240 8700

Nathan Imlach, Chief Financial Officer

www.mattioliwoods.com

 

Canaccord Genuity Limited (Nominated Advisor and Joint Broker)


Sunil Duggal


David Tyrrell

Tel: +44 (0) 20 7523 8000

Tom Diehl

www.canaccordgenuity.com

 

N+1 Singer (Joint Broker)


Justin McKeegan, Corporate Finance


Pete Steel, Corporate Finance

Tel: +44 (0) 20 7496 3000

Tom Salvesen, Corporate Broking

 

Media enquiries:

Camarco


Ed Gascoigne-Pees

Tel: +44 (0) 20 3757 4984


www.camarco.com

 


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