Acquisitions help drive Mattioli Woods profit jump

SIPP provider and wealth manager Mattioli Woods has reported a near 73% rise in revenue for the year ended 31 May thanks to a rapid acquisition programme. The company, which has acquired numerous adviser firms, said adjusted EBITDA, a measure of profit, rose 88.4% to £32.6m for the year. Mattioli plans further acquisitions in the advice and SIPP sector as opportunities arise due to consolidation. The company said despite a “turbulent” year its recent acquisitions of Financial Planning firms had helped boost profits significantly. The company, once best known mainly as a SIPP provider, has become better known in recent times as a wealth manager and asset manager. In 2021 the firm acquired eight adviser firms including Maven Capital Partners, Ludlow Wealth Management and Richings Financial Management. In May this year came its latest acquisition, Ferguson Financial Management. Mattioli Woods now has a network of 185 consultants across its advisory businesses. Total client assets of the group and its associate fund manager Amati rose 23.1% to £14.9bn (2021: £12.1bn) at year end. Revenue increased 72.8% to £108.2m (2021: £62.6m) with acquisitions providing £46.1m of this (2021: £6.0m). New client numbers rose by 1,084 (2021: 898) as the group focused more on business development. Recurring revenues made up 86.8% (2021: 92.7%) of total revenue, reflecting contributions from Maven Capital Partners and increased initial client fees. CEO Ian Mattioli 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% 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. “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. “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.”

Acquisitions help drive Mattioli Woods profit jump

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