Aim 100 

The Aim 100 2019: 100 to 91

The Aim 100 2019: 100 to 91

100. Mattioli Woods

Like its peers, Mattioli Woods (MTW) has been battling the impact of volatile markets and political uncertainty on fund levels in recent months. Unlike its rivals, the wealth manager achieved net inflows during the closing months of 2018, although they were offset by negative market movements. More than half of Mattioli’s revenue is earned via time-based or fixed fees, rather than according to the level of assets under management, making it more defensively placed than many of its wealth management peers in times of market volatility.

Given market uncertainty, it is unsurprising that management has been focused on operational efficiencies. That strategy helped push the adjusted cash profit margin up to 26.4 per cent during the six months to November 2018, up from 22.9 per cent in the previous year and ahead of a 20 per cent target. The shares trade at 20 times forecast earnings for 2019, based on Shore Capital estimates; a premium to the sector and in line with the three-year historical average. Given ongoing market instability, we do not think that valuation constitutes a buying opportunity. Hold. EP

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