Volatile markets and political uncertainty hampered revenue growth for Mattioli Woods (MTW) during its first half. However, the wealth manager remained focused on operational efficiencies, which helped to push adjusted cash profit margins to 26.4 per cent, up from 22.9 per cent a year ago and ahead of management’s 20 per cent target. This meant that despite a very modest rise in revenue, adjusted cash profits were up almost a fifth.
Mattioli also posted a marginal uptick in client assets under management following August’s acquisition of financial planning and wealth management business Broughtons – which brought with it £120.5m in funds – and an increase in assets managed by Amati Global Investors, in which the group has a 49 per cent stake. However, while the discretionary portfolio management service gained £40m in net inflows, that was offset by negative market movements of £55.7m.
Lower retirement planning activity also offset a rise in the number of self-invested personal pension plans (Sipps) and small self-administered schemes (Ssas) administered by the group. That resulted in a 2 per cent reduction in fees to £8m.
Analysts at Shore Capital expect adjusted pre-tax profits of £12.2m and EPS of 38.8p for the year to May 2019, rising to £13.8m and 43.6p, respectively, the following year.
| MATTIOLI WOODS (MTW) | ||||
| ORD PRICE: | 730p | MARKET VALUE: | £193m | |
| TOUCH: | 720-740p | 12-MONTH HIGH: | 860p | LOW: 625p |
| DIVIDEND YIELD: | 2.4% | PE RATIO: | 23 | |
| NET ASSET VALUE: | 309p* | NET CASH: | £16.4m | |
| Half-year to 30 Nov | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017 | 28.4 | 5.39 | 16.9 | 5.5 |
| 2018 | 29.2 | 5.63 | 17.0 | 6.33 |
| % change | +3 | +5 | +1 | +15 |
| Ex-div: | 14 Feb | |||
| Payment: | 29 Mar |
