Mattioli Woods (MTW) may have acquired five new businesses in the year through to May 2016, but chief executive Ian Mattioli says organic growth will continue to be the focus for the wealth manager. The group certainly delivered on this front, doubling its organic revenue growth rate by the half-year mark.
Total assets under management were up 14 per cent to £7.6bn. The investment and asset management business once again led the way in terms of revenue growth, as discretionary management services continued to attract investors. As a result, this segment of the business managed to increase its higher-quality recurring revenue to more than 84 per cent of its top line.
However, the pensions and consultancy business also posted respectable sales growth of 17 per cent. The acquisition of MC Trustees brought with it a further £442m in assets and helped take the total number of personal savings products (Sipps etc) the group administers to almost 10,000.
The pension freedom changes continued to prompt sales growth, with direct consultancy and administration fees for retirement planning increasing almost a fifth to 7m. However, employee benefits revenues were flat as the market continued to adjust to the abolition of commissions for money purchase scheme providers in April last year.
Analysts at N+1 Singer expect adjusted pre-tax profits of £9.7m for the 12 months to the end of May 2017, giving EPS of 32.2p (up from £8.8m and 30.2p in 2016).
MATTIOLI WOODS (MTW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 791p | MARKET VALUE: | £201m | |
| TOUCH: | 777-805p | 12-MONTH HIGH: | 798p | LOW: 569p |
| DIVIDEND YIELD: | 1.7% | PE RATIO: | 34 | |
| NET ASSET VALUE: | 266p* | NET CASH: | £22.6m | |
| Half-year to 30 Nov | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 19.9 | 2.8 | 9.4 | 3.85 |
| 2016 | 24.3 | 3.6 | 11.7 | 4.7 |
| % change | +22 | +27 | +24 | +22 |
Ex-div: 16 Feb Payment: 31 Mar *Includes intangible assets of £45m, or 178p a share | ||||
