Mattioli Woods buys Planner firm for £2.3m

Wealth manager and SIPP provider Mattioli Woods has bought London-based Financial Planner Montagu Limited in a deal worth up to £2.34m. Montagu is based in Twickenham and employs four staff who will stay on with Mattioli Woods following completion. Montagu was established in 1996 and provides wealth management advice and administration to 150 private and corporate clients with approximately £80m of assets under advice. The managing director is Chris Simpkin. Mattioli Woods said the business is based, like Mattioli Woods, on the provision of fee-based Financial Planning advice. In the year ended July, Montagu saw revenues of £0.77m with a pre-tax profit of £0.31m. At 31 July 2020 Montagu's gross assets were £1.05m and net assets were £0.95m, including £0.91m of cash. The acquisition is expected to be earnings enhancing in the first full year of ownership. The deal involves an initial cash payment of £1.39m compromising £1.09m in cash plus 40,161 new ordinary shares of 1p each in Mattioli Woods, which are valued at £0.3m, and contingent consideration of up to £0.95m payable in cash on the first and second anniversaries of completion, subject to revenue targets being met. Ian Mattioli, chief executive of Mattioli Woods, said: "Our discussions have confirmed the strong cultural fit and our common approach to looking after clients, and we are very pleased that Chris and his team are joining Mattioli Woods. “The transaction expands our existing operations in London and the South East. We believe the range of products and services that Mattioli Woods has to offer can support the excellent outcomes from which Montagu's clients already benefit, whilst offering the potential to realise real revenue synergies by combining our operations." Chris Simpkin, Montagu's managing director, said: "We are delighted to become part of the Mattioli Woods Group; one of the UK's top financial services companies. “Our clients and staff will continue to benefit from our combined strong ethos and culture. Moving forward, the additional resources and support of being part of the Mattioli Woods Group will help us continue to provide our clients with the highest level of service that they have come to expect. We look forward to what the future will bring and sharing this with our clients.”

Mattioli Woods buys Planner firm for £2.3m

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