Wealth and asset management firm Mattioli Woods has credited an easing of concerns over Covid and the Brexit trade deal for helping it to a 7% rise in annual revenue.
Mattioli, which last week (July 1) wrapped up the acquisition of private equity firm Maven Capital Partners in a deal worth up to £100 million, delivered a year-end trading update today (July 6). The company will announce full-year results on September 8.
We continue to expect the group to secure organic revenue and profit growth in this new financial year, while progressing our acquisition and integration strategy and to remain focused on delivering great outcomes for our clients.”
Ian Mattioli, chief executive
The expected 7% revenue growth was driven by increased inflows and strong performance of discretionary portfolio managed services, while profits were in line with management’s expectations, Mattioli said.
Chief executive Ian Mattioli added: “The group’s financial performance in the second half of the year benefitted from an easing of some concerns relating to Covid-19 and a Brexit trade deal, amongst other factors, which resulted in increased investment activity.”
These, together with positive investment performance, saw sustained and higher inflows into the group’s discretionary portfolio management services during a period of “considerable market volatility”, he said.
Mt Mattioli continued: “The group saw a notable increase in the level of new business generated, through primarily virtual but also through traditional, face-to-face meetings when permitted.
“This combined with a stronger pipeline of new client leads provides opportunities for future organic revenue growth.”
The acquisitions of Maven and also Ludlow Wealth Management – a financial planning business in north-west England snapped up by Mattioli in a deal worth up to £43.5m – represent “meaningful progress” towards the group’s medium-term revenue, earnings and asset goals, Mr Mattioli said.
30th anniversary year
He added: “The board remains positive about the group’s prospects. In the current financial year we have seen positive momentum continue to build, with greater client activity and increasing inflows into the bespoke investment services the group has developed.
“We continue to expect the group to secure organic revenue and profit growth in this new financial year, while progressing our acquisition and integration strategy and to remain focused on delivering great outcomes for our clients.”
Mattioli, currently celebrating its 30th year, reported total client assets of £12 billion for the group and its associated businesses at year-end, as well as the completion of a £112m fundraising to support the acquisition of Maven, Ludlow and potentially other firms.