Mattioli Woods Issues Final Results for the Year Ended 31 May 2022

Financial Highlights

• Total client assets of the Group and its associate rose 23.1% to £14.9bn (2021: £12.1bn) at year end
• Revenue increased 72.8% to £108.2m (2021: £62.6m)

• Strong organic revenue growth up 10.0% to £62.2m (2021: £56.6m)
• Positive contribution from acquisitions of £46.1m (2021: £6.0m)
• Increased new client wins of 1,084 (2021: 898), reflecting investment in business development initiatives

• Recurring revenues represent 86.8% (2021: 92.7%) of total revenue, reflecting contributions from Maven Capital Partners and increased initial client fees
• Adjusted EBITDA  increased 88.4% to £32.6m (2021: £17.3m), including our post-tax profit of our associate Amati Global Investors, which grew 45.5% to £1.6m (2021: £1.1m)
• Adjusted EBITDA margin  rose to 30.1% (2021: 27.7%)
• Adjusted EPS3, rose 17.5% to 48.3p (2021: 41.1p), growing organically and through accretive acquisitions
• Proposed final dividend of 17.8p (2021: 13.5p), giving a total dividend rise of 24.3% to 26.1p (2021: 21.0p)
• Strong cash generation and overall financial position, with £53.9m of cash at 31 May 2022 (2021: £21.9m)

Operational highlights and recent developments

• Diversified revenue mix with 48.0% (2021: 54.2%) fixed, initial or time-based fees uncorrelated to market performance
• Gross discretionary AuM rose 25.8% to £5.1bn (2021: £4.1bn), with net inflows of over £341m in the year
• Strong revenue and earnings contribution from recent acquisitions that are performing ahead of expectations and integrating well

• Acquisition of Ferguson Financial Management completed in May 2022, with a strong pipeline of further accretive acquisition opportunities

• Continued progress on strategic initiatives with increased investment in technology, compliance and training
• Strong new business pipeline versus prior year

 Commenting on the results, Ian Mattioli MBE, Chief Executive Officer, said:

“The last financial year was another turbulent period for clients, which served to reinforce our commitment to putting clients first, developing our service offering and building a business that is sustainable and resilient over the long-term.  I am pleased to report this approach delivered strong revenue growth of 72.8% to £108.2m (2021: £62.6m) reflecting the positive contribution of recent acquisitions combined with 10.0% organic growth in our core business and increased levels of new business offsetting the impact of negative market movements on the value of clients’ assets. Adjusted EBITDA was up 88.4% to £32.6m (2021: £17.3m) and adjusted EBITDA margin increased to 30.1% (2021: 27.7%) representing meaningful progress towards our strategic goals. 

“Adjusted EPS rose 17.5% to 48.3p (2021: 41.1p). The Board is pleased to recommend a final dividend of 17.8p per share (2021: 13.5p). This makes a proposed total dividend for the year of 26.1p (2021: 21.0p) a year-on-year increase of 24.3% (2020: 5.0% increase), demonstrating our desire to deliver value to shareholders and confidence in the outlook for our business.   

“We plan to maintain this positive momentum, advancing our strategic initiatives: new business generation, growth through the integration of acquisitions, developing new products and services, reviewing our processes and investing in technology to deliver an improved client experience and further operational efficiencies.

“Investment markets are likely to remain volatile for some time, although the spectre of rising inflation typically creates significant advice opportunities given our diverse revenue streams and for further investment inflows as existing and prospective clients consider appropriately investing surplus cash to avoid suffering an erosion in value of savings in real terms.

“We will continue to seek to understand our clients’ needs and provide quality solutions, maintaining our focus on client service and continuing to adapt our business model to the changing market, integrating asset management and financial planning. 

“We further plan to build on our track record of successful acquisitions by continuing to assess and progress opportunities that meet our strict criteria.  Consolidation within wealth management, asset management and SIPP administration is expected to continue for the foreseeable future, with many more opportunities coming to market.

“I sincerely thank and remain humbled by the continued professionalism, commitment, endeavour and agility that our people have shown in managing our clients’ affairs throughout another challenging year. 

“The outlook for the new financial year remains positive, notwithstanding the continuing challenging macroeconomic conditions, and we continue to trade in line with expectations. As previously disclosed, cost inflation and progressing our strategic initiatives including investment in people and technology are expected to impact margins in the short term but will position us to secure future growth in revenue and profits. This will also provide opportunities to deliver future growth and sustainable shareholder returns as a business that is here for the long term”. 

You can read the full market announcement here.