Mattioli Woods is pleased to report its interim results for the six months ended 30 November 2016.
- Revenue up 22.1% to £24.3m (1H16: £19.9m)
- Recurring revenues represent 84.3% (1H16: 81.6%)
- Adjusted EBITDA* up 20.9% to £5.2m (1H16: £4.3m):
- Adjusted EBITDA margin of 21.4% (1H16: 21.7%)
- Adjusted EPS** up 15.9% to 16.8p (1H16: 14.5p)
- EBITDA up 22.5% to £4.9m (1H16: £4.0m):
- EBITDA margin of 20.2% (1H16: 20.1%)
- Basic EPS up 24.5% to 11.7p (1H16: 9.4p)
- Interim dividend up 22.1% to 4.7p (1H16: 3.85p)
- Strong financial position, with net cash of £22.6m (1H16: £22.6m)
- Total client assets up 14.4% to £7.56bn (31 May 2016: £6.61bn):
- Gross discretionary AuM up 17.1% to £1.37bn (31 May 2016: £1.17bn)
- £44.6m of new equity raised by Custodian REIT
- Net organic revenue growth*** of £2.5m (14.2%) (1H16: £1.2m, 7.4%)
- Acquisition of MC Trustees in September 2016
- New Manchester office opened in November 2016
- Appointments of Chief Investment Officer and Head of Risk Management and Compliance
- Over £60m now invested in Mattioli Woods Structured Products Fund
- Purchase of 49% of Amati in February 2017, with option to acquire remaining 51%
Commenting on the interim results, Ian Mattioli MBE, Chief Executive Officer, said:
"We are delighted to report another period of strong growth in the first half of this financial year. We grew revenue by 22.1%, with our clients' desire for a better understanding of their financial position and the continued development of our wealth management proposition driving strong new business flows. This, combined with acquisitions completed in the current and prior financial years, increased total client assets under management, administration and advice to over £7.5bn at the period end.
"Gross discretionary assets under management increased by 17.1% to £1.37bn, with a net increase of £0.11bn in funds managed by our discretionary portfolio management service. Custodian REIT, the UK real estate investment trust managed by our subsidiary Custodian Capital, raised a further £44.6m of new monies in the period. We also launched the Mattioli Woods Structured Products Fund in November 2016, which has generated significant client interest, raising over £60m of new monies to date.
"We have seen a sustained demand for advice in our pension business as more people look to take advantage of pension freedoms and we were pleased to announce the acquisition of MC Trustees in September last year, which is an excellent fit with our existing pension business and provides trustee and administration services to over 1,500 SIPP and SSAS schemes.
"Acquisitions continue to be a core part of our growth strategy and our purchase of 49% of Amati, announced today, represents an exciting extension to our existing asset management business and is another important step forward for Mattioli Woods, which I believe will significantly enhance the Group's fund management expertise.
"We are proud of the strong shareholder returns we have delivered and remain committed to growing the dividend, while maintaining an appropriate level of dividend cover. The Group's strong performance during the first half has allowed the Board to recommend the payment of an increased interim dividend, up 22.1% to 4.7 pence per share.
"Delivering great client outcomes remains at the heart of everything we do. Our focus is on ensuring the Group continues to address our clients' changing needs and we continue to broaden our proposition through innovative product development and by acquisition. We believe our vertically-integrated models for wealth management and employee benefits, blending our capabilities as trusted adviser, administrator, product provider and asset manager, allow us to deliver improved and sustainable client outcomes, which will enable the Group to secure further profitable growth."
* Earnings before interest, taxation, depreciation, amortisation, impairment and acquisition-related costs
** Before acquisition-related costs, amortisation and impairment of acquired intangibles, and notional finance income and charges.
*** Excluding acquisitions completed in the current and prior financial years.
Download and read the complete interim results 2016 document below: