Advisers thrive on complexity. For employee benefits turned wealth manager Mattioli Woods (MTW), chancellor George Osborne has served up a veritable feast of complicated regulation affecting saving, retirement income and inheritance. Management argues that being able to cater to clients' entire wealth needs is allowing it to win contracts ahead of traditional employee benefits providers, and that this helped increase the rate of organic revenue growth from 11.3 per cent to 16.6 per cent.
This growth is also reflected in the asset base of the discretionary fund management business, which has now passed the £1bn mark. As a result, high-quality recurring revenues - asset-based fees - as a proportion of overall turnover rose by 33 basis points to 81.4 per cent.
But the company is not satisfied with just organic growth: the £5m cash-and-shares acquisition of north-west business Taylor Patterson, announced with these figures, is typical of the 30-50 person businesses Mattioli Woods is hoovering up. The 2013 purchase of Atkinson Bolton provided its first full-year contribution of £3.2m in revenue, while the fall in post-tax profit simply reflects a one-off drop in the 2014 tax rate.
Analysts at Shore Capital expect adjusted EPS of 28.9p for 2016, rising to 37.2p in 2017.
| MATTIOLI WOODS (MTW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 625p | MARKET VALUE: | £154m | |
| TOUCH: | 620-630p | 12-MONTH HIGH: | 625p | LOW: 419p |
| DIVIDEND YIELD: | 1.7% | PE RATIO: | 32 | |
| NET ASSET VALUE: | 160p* | NET CASH: | £10.6m | |
| Year to 31 May | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 15.4 | 4.6 | 18.9 | 4.95 |
| 2012 | 20.5 | 4.2 | 16.8 | 5.55 |
| 2013 | 23.4 | 4.6 | 19.2 | 7.0 |
| 2014 | 29.3 | 5.1 | 22.0 | 9.1 |
| 2015 | 34.6 | 5.3 | 19.8 | 10.5 |
| % change | +18 | +3 | -10 | +15 |
Ex-div: 17 Sep Payment: 26 Oct *Includes £29m of intangible assets, or 117p a share | ||||
