90. Mattioli Woods
The goal: to build a vertically integrated wealth manager. Starting out as an employee benefits provider, Mattioli Woods (MTW) has been steadily adding businesses to diversify into wealth management and pensions consultancy.
The investment and asset management business has led the way in revenue growth so far during this financial year. Income from advising clients on personal and pension investment grew by 30 per cent during the six months to November, while portfolio management charges were up £1m to £5.1m. Like its peers, Mattioli Woods is benefiting from an increase in the money it manages on a discretionary basis – where it takes charge of the day-to-day investment management – which also delivers more recurring revenue. Referrals from the employee benefits business have assisted here.
So far this financial year Mattioli has added five businesses. The largest of these was MC Trustees, a pensions administrator that brought with it £442m in assets. That’s not to say organic growth is absent – in fact, the growth rate doubled during the first half to 14 per cent. At 815p, the shares are trading at 24 times forward earnings, a demanding rating both against the wider London market and against Mattioli’s peers. However, we like the level of diversification, recurring revenue and structural drivers. Buy. EP
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