Mattioli Woods has today reported its final results for the year ended 31 May 2017.
- Revenue up 17.4% to £50.5m (2016: £43.0m)
- Recurring revenues of 85.1% (2016: 82.6%)
- Adjusted EBITDA1 up 17.2% to £10.9m (2016: £9.3m):
- Adjusted EBITDA margin1 of 21.6% (2016: 21.6%)
- Adjusted EPS2 up 11.4% to 34.1p (2016: 30.6p)
- EBITDA up 18.0% to £10.5m (2016: £8.9m):
- EBITDA margin of 20.8% (2016: 20.7%)
- Basic EPS up 18.7% to 24.8p (2016: 20.9p)
- Proposed total dividend up 12.8% to 14.1p (2016: 12.5p)
- Strong financial position with net cash of £23.0m (2016: £29.8m)
- Organic revenue growth3 of 11.6% (2016: 8.5%):
- Over 1,200 new client wins- 115 (2016: 104) consultants at year end
- Total client assets up 17.5% to £7.77bn (2016: £6.61bn):
- Gross discretionary AuM up 39.3% to £1.63bn (2016: £1.17bn)
- £98.4m invested in new Mattioli Woods Structured Products Fund
- £76.0m of new equity raised by Custodian REIT
- Acquisition of MC Trustees in September 2016
- Purchase of 49% of Amati in February 2017, with option to acquire remaining 51%
- Extending strategic geographic footprint:
- New Manchester office opened in November 2016
- Moved to new London office in December 2016
- Moved to new Glasgow office in May 2017
- Reducing client costs while maintaining target EBITDA margin
- New management structure
1 Earnings before interest, taxation, depreciation, amortisation and acquisition–related costs.
2 Before acquisition–related costs, amortisation and impairment of acquired intangibles, and notional finance income and charges.
3 Excluding acquisitions completed in the current and prior financial years. Net organic revenue growth of 12.3% (2016: 11.3%) excluding banking income and acquisitions in the current and prior financial years.
Commenting on the results, Ian Mattioli MBE, Chief Executive Officer, said:
"I am pleased to report another successful year, with revenue up 17.4% to £50.5m (2016: £43.0m). Sustained demand for advice and the continued development of our investment and asset management proposition have driven strong new business flows, which together with acquisitions completed in the current and prior financial year increased total client assets under management, administration and advice by 17.5% to £7.77bn (2016: £6.61bn) at the year end.
"Strong revenue growth translated to growth in Adjusted EPS of 11.4% to 34.1p (2016: 30.6p). Accordingly, the Board is pleased to recommend the payment of an increased final dividend of 9.4 pence per share (2016: 8.65 pence). This makes a proposed total dividend for the year of 14.1 pence (2016: 12.5 pence), a year-on-year increase of 12.8%, while maintaining an appropriate level of dividend cover.
"Acquisitions remain a core part of our growth strategy. In September 2016, we were pleased to acquire MC Trustees, bringing additional scale and expertise to our pension administration business and the Group's strategic investment in Amati in February 2017 brings a new dimension to our asset management business. Amati's total funds under management have increased from £120m at acquisition to over £178m today.
"The five businesses acquired during the previous financial year have integrated well and all have contributed positively to the Group's trading results since acquisition.
"Regulatory changes continue at considerable pace. Our immediate focus is on ensuring we are fully compliant with those changes already in train, such as MiFID II, the GDPR and the Senior Managers Regime. The FCA has highlighted there is weak price competition in the asset management industry and has said it will assess firms' vertical integration and the entire value chain of investing in its upcoming platform market review. Improving client outcomes and reducing client costs are key objectives of ours and we strongly support the FCA's objectives of increased transparency and better alignment of interests between fund managers and investors.
"As part of our commitment to developing the Group's governance and management structures we have created a new Senior Executive Team to execute the strategy determined by the Board. We have also reduced the size of our Board to eliminate duplication between it and the Senior Executive Team, ensuring clearer lines of responsibility and creating a balanced Board of three executive directors and three non-executive directors.
"Our focus remains on ensuring the Group addresses our clients' changing needs and we continue to broaden our proposition through advice and innovative product development such as the Mattioli Woods Structured Products Fund, organically and by acquisition. We believe our capabilities as trusted adviser, administrator, product provider and asset manager allow us to deliver improved and sustainable client outcomes. I look forward to us building upon our success over the last 25 years to deliver further value for our shareholders."