Mattioli Woods, the specialist wealth and asset management business, today reports its final results for the year ended 31 May 2021.
- revenue up 7% to £62.6 million (2020: £58.4 million)
- recurring revenue represent 92.7% (2020: 92.1%) of total revenue
- adjusted EBITDA £17.3 million down 8% (2020: £18.9 million; 2019 pre-Covid-19 £14.1 million)
- adjusted EBITDA margin 27.7% (2020: 32.4%; 2019: 24.5%)
- operating profit before financing £4.2 million down 65% (2020 restated: £12.2 million; 2019: £9.2 million):
- Significantly reduced discretionary staff bonuses paid in the prior year due to Covid-19 with incremental £1.8 million paid in 2021 to £3.1 million.
- Acquisition related expenses of £2.6 million (2020: £0.3 million) on eight acquisitions completed in or shortly after the year.
- profit before tax £5.1 million down 60% (2020 restated: £12.7 million) driven by IFRS 3 accounting policy
- adjusted profit before tax £14.2 million down 11% (2020 restated: £16.0 million)
- basic EPS 5.1p down 85% (2020 restated: 34.9p)
- adjusted EPS 41.1p (2020 restated: 47.6p)
- proposed final dividend of 13.5p (2020: 12.7p), giving a total dividend of 21.0p up 5% (2020: 20.0p)
- strong financial position, with £21.9 million (2020: £26.0 million) of cash at 31 May 2021
Operational highlights and recent developments
- total client assets of the Group and its associate up 30.4% to £12.1 billion (2020: £9.3 billion) at year-end
- gross discretionary AuM of £4.1 billion (2020: £2.6 billion), with net inflows of over £453 million in year
- uninterrupted client service
- delivery throughout year demonstrating operational resilience
- continued investment in technology, compliance and training
- board appointments during the period strengthens strategic oversight
- recent acquisitions performing and integrating well
- £112 million fundraise in June to facilitate strategic acquisitions
- post year-end completion of Maven Capital Partners, Ludlow Wealth Management and Richings Financial Management acquisitions
Commenting on the results, Ian Mattioli MBE, Chief Executive Officer, said:
"I am pleased to report that even in these unprecedented times we continue to grow and develop the business. The Group's revenue grew 7% to £62.6 million (2020: £58.4 million), driven by increased inflows and the sustained performance of our discretionary management proposition, combined with positive contribution of each of the businesses acquired during the year.
"The uncertainty that we have all experienced over the last year has served to enhance our commitment to maintaining our culture of putting clients first, developing our service offering and building a business that is sustainable over the long-term. Our continued investment in technology has allowed the majority of our team to continue working remotely, and for us to work in a new operating environment with an increased number of new clients and also generate an increased pipeline of new business opportunities.
"The essence of what we do is looking after our clients' money and there is an expectation that we should apply the same diligence in looking after that of our business and our shareholders. Current trading is in line with our expectations and the momentum that we saw in the second half of last year continues in the current year.
"Adjusted EBITDA was down 8% to £17.3 million (2020: £18.9 million) and adjusted EBITDA margin of 27.7% (2020: 32.4%), primarily as a result of the decision to reinstate discretionary staff bonuses, and increased contribution from our associate company, Amati.
"Adjusted EPS reduced 2% to 41.1p (2020 restated: 47.6p). The Board is pleased to recommend a final dividend of 13.5p per share (2020: 12.7p). This makes a proposed total dividend for the year of 21.0p (2020: 20.0p) a year-on-year increase of 5.0% (2020: flat), demonstrating our desire to deliver value to shareholders and confidence in the outlook for our business.
"This has been a record year of acquisitions for the Group. In June 2021, we announced the successful completion of a £112 million equity fundraise to facilitate the earnings enhancing acquisitions of Maven, Ludlow, Richings, a pipeline of smaller bolt-on acquisitions and to provide regulatory capital headroom. We also completed the acquisitions of five businesses during the year, and I am pleased that all are performing and integrating well.
"We will continue to seek to build on our track record of successful acquisitions by continuing to assess and progress opportunities that meet our strict criteria. Consolidation within both wealth management and SIPP administration is expected to continue for the foreseeable future with many more opportunities coming to market.
"I am very grateful for the continued commitment, endeavour, agility and professionalism that our people have shown in dealing with our clients' affairs throughout a year characterised by a sustained level of uncertainty.
"The easing of lockdown restrictions and continued roll out of the Covid-19 vaccination programme are beginning to support investor confidence. Investment markets have partially recovered from the weakness seen at the outset of the Covid-19 pandemic but look likely to remain volatile for some time. This provides a significant opportunity for Mattioli Woods, as people seek to take charge of their financial affairs and manage wealth through the generations. At the same time, savings and investments are becoming more complicated and regulatory requirements continue to increase. Clients need long-term advice and strategies more than ever before. 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 to build upon our established reputation for delivering sound advice and consistent investment performance.
"We are confident our focus on addressing the changing needs of our clients, developing the capabilities of the Group and continued investment in our governance and infrastructure, will position us well to deliver future growth, sustainable shareholder returns over the long term and a business that is here for the long term".
You can read the full market announcement here.