Wealth management business Mattioli Woods plc has announced an increase in its profits during the first half of its financial year as it renewed its pledge to drive down client costs and secure great client outcomes.
In an upbeat message, Chief Executive Officer, Ian Mattioli MBE, said he was pleased with the results and that its integrated model was focused on creating a sustainable and resilient business with its clients at the absolute core, including £1.75m of administration and dealing expenses being used to reduce client costs.
Mr Mattioli commented: ‘The success of Mattioli Woods has been based upon the delivery of quality advice, growing our clients’ assets and enhancing their financial futures. We look after their money as well as their financial aspirations.
‘I believe our focus on client service and the inherent flex within our business model will allow us to continue to adapt to the changing wealth and asset management marketplace’.
He confirmed that he believed fees for financial services in the UK were too expensive and that, as a result, the business had set out its aim to lower client costs through operational efficiencies.
Commenting on the current complexities in the marketplace, Ian stressed that the time was absolutely right to proactively engage with clients to ensure the business is addressing their changing needs.
Reporting the Group’s strong financial position, with almost 30 consecutive years of revenue and profit growth and total client assets of £8.79bn, Ian highlighted the success of the Group’s innovative investment services such as the Private Investors Club, Custodian REIT plc and the Mattioli Woods Structured Products Fund, in addition to the funds managed by its associate company Amati Global Investors Limited, all of which have led to inflows of £140.5m during the period.
Ian confirmed the firm’s adjusted EBITDA margin – earnings before interest, taxation, depreciation and amortisation – was ‘substantially ahead’ of its 20% target. The Group reported adjusted profit before tax up by 8.3% to £6.5m and revenue growth of 2.8% to £29.2m, demonstrating how technology and improved systems were helping both clients and the business to grow and develop.
Other highlights from the six-month period included bringing Birmingham-based Broughtons into the Group, which he said was performing well, the move to new offices in the heart of Leicester and a continued investment in compliance and training, which remain at the heart of the Group’s long-term aim to become the ‘go-to’ UK wealth manager.
Ian concluded: ‘Our profit outlook for the year remains in line with management's expectations, and I am confident we can secure further progress towards the ambitious longer-term goals we have set’.