News Column

Mattioli Woods Raises Dividend As Profit Grows, Revenue Mix Shifts

September 2, 2014

Samuel Agini

LONDON (Alliance News) - Mattioli Woods PLC Tuesday reported an increase in pretax profit over the course of its last financial year, as its client assets under management, administration and advice increased by 27% to GBP4.63 billion at the end of May.

In a statement, the specialist wealth management and employee benefits business said it made a GBP5.1 million pretax profit in the year ended May 31, compared with a GBP4.6 million pretax profit a year earlier.

Mattioli Woods increased its full-year divided to 9.10 pence per share from 7.00p last year. The company said it is committed to growing the dividend while maintaining an "appropriate" level of cover.

Revenue rose to GBP29.3 million from GBP23.4 million, which Mattioli Woods ascribed to "sustained" demand for its services.

The group's revenue mix changed over the period, meaning it its now more biased towards wealth management, employee benefits and third-party pension administration than it was last year. Together, these services made up 56.8% of the group's revenue, up from 52.9% last year. Nevertheless, direct pension consultancy and administration - the largest single item in its revenue mix - still made up 36.0% of the total, a small decrease from last year's 38.7%. Property management, falling to 7.2% from 8.4%, made up the remainder.

After taking into account an increase in the company's employee benefits expense to GBP16.9 million from GBP12.8 million, higher administrative expenses, and share-based payments, as well as rises in amortisation and impairment, depreciation and loss on disposal of property, plant and equipment, operating profit increased to GBP5.1 million from GBP4.6 million.

Chairman Bob Woods said that trading in the current period is in line with the board's expectations.

"A key part of our strategy is the delivery of an integrated and scaleable technology platform to be used throughout the group," Woods said in a statement.

The group is planning a further GBP1.0 million of capital investment in its bespoke pension administration and wealth management platform over the next twelve months. It is aiming to enhance the services it offers to clients and achieve operational efficiencies across the business.

"It is our ambition to give clients a consolidated view of all their assets, building upon our existing client service proposition. I believe our ability to deliver proactive advice with a growing suite of our own products and services is a powerful combination, which will keep the group well positioned to secure further profitable growth over the coming years," Woods said.

The chairman added that the group remains focused on strong organic growth, but that it may turn to "strategic acquisitions" to supplement its current operations.

Further acquisitions would follow the purchase of UK Wealth Management's pension business in August.

Mattioli Woods shares were Tuesday quoted up 0.7% at 442.00 pence.

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Source: Alliance News

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