Economies of scale may have boosted Mattioli Woods (MTW) adjusted cash profit margin by 1 percentage point to 21.6 per cent last year, but chief executive Ian Mattioli has no plans to raise the 20 per cent target. Instead, Mr Mattioli wants to keep an eye on client costs – a wise move given the regulatory focus on retail investment charges.
Legislative changes in the pension market have helped boost demand in the group's pension consultancy and administration division. The number of self-invested personal pension (Sipp) and self-administered personal pension (Ssas) schemes rose 5.1 per cent to 10,533, helping drive 15.3 per cent growth in the division's revenue to £21.8m. This helped lift total funds under management and administration up 10 per cent to £8.7bn.
The discretionary portfolio management service also gained £185m in net inflows, which together with £11.3m market gains, took discretionary assets under management up 18 per cent to £1.34bn. Amati Global Investors – in which the group acquired a 49 per cent stake in last year – gained £101m in net inflows, taking funds under management up to £325m. As part of plans to expand geographically, management bought West Midlands-based financial planning business Broughtons in August, which has more than £120m in assets under advice.
Analysts at Shore Capital expect adjusted pre-tax profit of £12.3m for the 12 months to May 2019 and EPS of 39p, rising to £13.9m and 43.8p, respectively, the following year.
| MATTIOLI WOODS (MTW) | ||||
| ORD PRICE: | 850p | MARKET VALUE: | £224m | |
| TOUCH: | 840-860p | 12-MONTH HIGH: | 862p | LOW: 730p |
| DIVIDEND YIELD: | 2% | PE RATIO: | 27 | |
| NET ASSET VALUE: | 300p | NET CASH: | £20.2m | |
| Year to 31 May | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 29.3 | 5.1 | 22.0 | 9.1 |
| 2015 | 34.6 | 5.3 | 19.8 | 10.5 |
| 2016 | 43.0 | 6.3 | 20.9 | 12.5 |
| 2017 | 50.5 | 7.6 | 24.5 | 14.1 |
| 2018 | 58.7 | 9.8 | 31.2 | 17 |
| % change | +16 | +29 | +27 | +21 |
| Ex-div: | 20 Sep | |||
| Payment: | 26 Oct |
