FINANCIAL HIGHLIGHTS
Revenue up 16.9% to £28.4m (1H17: £24.3m)
Organic revenue growth1 of £3.7m (15.4%) (1H17: £2.5m, 14.2%)
Recurring revenues represent 84.5% (1H17: 84.3%)
EBITDA2 up 38.8% to £6.8m (1H17: £4.9m):
– 0.4m gain on revaluation of Amati option
– EBITDA margin of 23.9% (1H17: 20.2%)
– Basic EPS up 46.6% to 17.0p (1H17: 11.6p)
Adjusted EBITDA3 up 25.0% to £6.5m (1H17: £5.2m):
– Adjusted EBITDA margin of 22.9% (1H17: 21.4%)
– Adjusted EPS4 up 15.0% to 19.2p (1H17: 16.7p)
Interim dividend up 17.0% to 5.5p (1H17: 4.7p)
Strong financial position, with cash of £14.8m (1H17: £22.6m)
1. Excluding acquisitions completed in the current and prior financial years.
2. Earnings before interest, taxation, depreciation, amortisation, impairment, excluding share of profit from associates.
3. Earnings before interest, taxation, depreciation, amortisation, impairment, changes in valuation of derivative financial instruments and acquisition-related costs, including share of profit from associates (net of tax).
4. Before acquisition-related costs, amortisation and impairment of acquired intangibles, changes in valuation of derivative financial instruments and notional finance income and charges.
OPERATIONAL HIGHLIGHTS AND RECENT DEVELOPMENTS
Total client assets5 up 5.2% to £8.34bn (31 May 2017: £7.93bn):
– Lowered custody charges for all clients using our core investment platform
– Gross discretionary AuM up 14.4% to £2.06bn (31 May 2017: £1.80bn)
– Custodian Capital now manages over £0.5bn of property assets
– Launched Mattioli Woods’ multi asset funds in August 2017
– Over £160m invested in Mattioli Woods Structured Products Fund
Budgeted operating costs to be weighted towards second half of financial year
Profit outlook for year remains in line with management’s expectations
5. Includes £197.0m (31 May 2017: £153.8m) of funds under management by the Group’s associate, Amati Global Investors Limited, excluding £17.3m (31 May 2017: £12.1m) of Mattioli Woods’ client investment and £10.9m (31 May 2017: £9.8m) of cross-holdings between the TB Amati Smaller Companies Fund and the Amati VCTs.
Commenting on the results, Ian Mattioli MBE, Chief Executive Officer, said:
“I am delighted to report another period of strong growth, with revenue up 16.9% to £28.4m (1H17: £24.3m). The Group has achieved real momentum across the range of advice, products and services we offer.
“Strong growth in revenue has translated into strong growth in Adjusted EPS, up 15.0% to 19.2p (1H17: 16.7p). Accordingly, the Board is pleased to recommend the payment of an increased interim dividend, up 17.0% to 5.5 pence per share (1H17: 4.7 pence). The Board remains committed to growing the dividend, while maintaining an appropriate level of dividend cover.
“The two businesses brought into the Group during the previous financial year have integrated well and contributed positively to our trading results since acquisition, increasing earnings and enhancing value.
“In recent years, we have seen a period of unprecedented change in regulation, legislation and client needs as the demand for advice and the potential market for our products and services continue to grow. During the period we saw an increasing flow of organic new business generated by our maturing consultancy team as we continue to expand our consultancy and technical teams to take advantage of new business opportunities. The continued commitment, enthusiasm and professionalism of our people in dealing with the complexity of holistically looking after our clients’ affairs makes us very well placed to succeed in our chosen markets.
“We have designed the Group to deliver great client outcomes and sustainable shareholder returns. The outlook for this year remains in line with our expectations and I believe we are very well positioned to meet the ambitious longer term goals we have set.”
Download and read the complete interim results 2017 document below:
