Ongoing “political and economic uncertainties and generally poor investor sentiment” have failed to dampen the mood at national pensions and wealth management specialist Mattioli Woods.
Management said they had had a busy year to May 31 with “strong growth” in adjusted pre-tax profits and recent acquisitions performing well.
The group said it was looking after £9.4 billion of client assets – up from £8.8 billion last November – and that having more than £23 million of cash in the bank meant it was in a strong overall position.
Chief executive Ian Mattioli said cutting client costs and general market conditions had led to slightly lower than expected revenue for the year – but that had been more than offset by efficiencies and cost savings.
In the year before this on (to May 2018) the business had a turnover of around £59 million, which had been up about 16 per cent on the year before that.
This year’s final results will be out at the start of September.
Mattioli Woods’ pension and wealth management offerings serve the higher end of the market, for clients such as directors and business owners, professionals, executives, and “affluent” retirees.
Its also provides employee benefit services to medium-sized to larger corporates.
Mr Mattioli said the long-term aim was to cut clients’ total expense ratios towards 1 per cent, meaning they would be well placed in the changing market.
He said acquisitions and organic growth meant they could use the economies of scale and operational efficiencies to “reduce clients’ costs, while delivering sustainable returns for our shareholders”.
He said: “I am pleased to report another year of sustainable profit growth, despite the ongoing political and economic uncertainties and generally poor investor sentiment over the 12 months ended May 31, 2019.
“Whilst political and economic uncertainty might continue to impact investor sentiment in the short term, we are confident that our focus on addressing the changing needs of our clients means we are well-positioned to deliver further growth.
“The opportunity for Mattioli Woods is significant, as people seek to take charge of their money and manage it multi-generationally.
“At the same time, savings and investments are becoming more complicated.
“Clients need long-term advice and strategies more than ever before and we will continue to provide quality solutions, with our focus on client service and the inherent agility within our business model allowing us to continue to adapt to the changing wealth and asset management marketplace.
“Over the last few months we have seen some positive momentum starting to build, with greater client activity and increasing inflows into the bespoke investment services the group has developed.
“I expect the group to secure organic revenue and profit growth in this new financial year, while progressing our acquisition strategy, where further consolidation within our core markets remains likely.
“I believe we are well-positioned to take advantage of these opportunities and progress further towards the ambitious longer-term goals we have set.”
Mr Mattioli said relocating from an out-off-town office park to new £14 million offices on the former city council site in New Walk, Leicester, had incurred “significantly lower downtime and relocation costs than anticipated”.
It was also helping them save around £850,000 in rent a year, while providing space for future growth.
Elsewhere, group managing director Murray Smith will stand down from the board at the October AGM, but will continue in a full-time role as founder director, focussing on his client portfolio, acquisitions and acting as an ambassador for the business.
His responsibilities will be handed over to deputy group managing director Michael Wright.
Meanwhile James Wilson has been appointed chief compliance and risk officer, and Ravi Tara takes on a new role of group finance director, reporting to the chief financial officer.
