Gaining more discretionary business has been crucial for wealth managers' growth over recent years. For that reason, Mattioli Woods’ (MTW) launch of its structured products fund in November was a smart move. The fund invests in a range of structured products – whose performance is linked to selected underlying indices – and had raised £98m by the end of May. This helped take gross discretionary assets under management up by more than a third to £1.6bn.
Total assets under management, administration and advice increased more than half to £7.8bn. Advising clients on pension and personal investments also continued to be the largest contributor to group revenue, up almost a quarter on 2016 to £21m. However, the biggest gain in assets was via self-invested pension plans (Sipps) administered by the pension and consultancy and administration business. This was partly due to its acquisition of MC Trustees, but it also gained £569m in organic net inflows and market gains.
The employee benefits business suffered a £56m decline in the assets held in the corporate pension schemes it advises on, following the loss of a large client in the North Sea oil and gas industry. Nevertheless, it still managed a 2 per cent uplift in sales to £5.4m, £0.7m of which was gained via referrals from its wealth management business.
Prior to these results, analysts at FinnCap expected adjusted earnings per share of 35.5p for the 12 months to May 2018, up from 34.1p in 2017.
| MATTIOLI WOODS (MTW) | ||||
| ORD PRICE: | 862p | MARKET VALUE: | £223m | |
| TOUCH: | 852-872p | 12-MONTH HIGH: | 872p | LOW: 651p |
| DIVIDEND YIELD: | 1.6% | PE RATIO: | 35 | |
| NET ASSET VALUE: | 280p* | NET CASH: | £23m | |
| Year to 31 May | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 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 |
| 2016 | 43.0 | 6.3 | 20.9 | 12.5 |
| 2017 | 50.5 | 7.6 | 24.8 | 14.1 |
| % change | +18 | +21 | +19 | +13 |
| Ex-div: | 21 Sep | |||
| Payment: | 27 Oct | |||
| *Includes intangible assets of £44m, or 172p a share | ||||
