Mattioli Woods announces latest results
Mattioli Woods has today reported its final results for the year ended 31 May 2018.
- Revenue up 16.2% to £58.7m (2017: £50.5m)
- Organic revenue growth1 of 15.6% (2017: 11.6%)
- Recurring revenues2 of 84.8% (2017: 85.1%)
- EBITDA3 up 22.1% to £12.7m (2017: £10.4m):
- EBITDA margin of 21.6% (2017: 20.6%)
- Adjusted EBITDA4 up 15.7% to £12.5m (2017: £10.8m):
- Adjusted EBITDA margin of 21.3% (2017: 21.4%)
- Profit before tax up 27.3% to £9.8m (2017: £7.7m)
- Basic EPS up 27.3% to 31.2p (2017: 24.5p)
- Adjusted EPS5 up 11.1% to 37.0p (2017: 33.3p)
- Proposed total dividend up 20.6% to 17.0p (2017: 14.1p)
- Strong financial position with net cash6 of £20.2m (2017: £23.0m)
Operational highlights and recent developments
- Reducing client costs while maintaining target EBITDA margin
- Total client assets7 up 10.1% to £8.73bn (2017: £7.93bn):
- Lowered custody charges for all clients using our core investment platform
- Gross discretionary AuM up 29.3% to £2.34bn (2017: £1.81bn)
- £115.4m (2017: £98.4m) inflows into the Mattioli Woods Structured Products Fund
- £103.8m inflows into Amati funds
- £49.1m (2017: £76.0m) of new equity raised by Custodian REIT
- Over 1,300 (2017: 1,200) new clients chose the Group's services in year
- 134 (2017: 115) consultants at year end
- Recent acquisitions performing well
- Extending strategic geographic footprint:
- Moved to new Manchester office in May 2018
- Opening new Edinburgh office in September 2018
- Moving to new Leicester office in October 2018
Commenting on the results, Ian Mattioli MBE, Chief Executive Officer, said:
- Continued investment in technology, compliance and training
"I am pleased to report another year of strong and sustainable growth, with revenue up 16.2% to £58.7m (2017: £50.5m). Organic revenue growth of 15.6% or £7.7m (2017: 11.6% or £4.4m) was primarily driven by the flow of new business generated by our consultancy team, with over 1,300 new SIPP, SSAS and personal clients choosing Mattioli Woods during the year.
"Strong growth in revenue translated into strong growth in Adjusted EPS, up 11.1% to 37.0p (2017: 33.3p). Accordingly, the Board is pleased to recommend the payment of an increased final dividend of 11.5 pence per share (2017: 9.4 pence). This makes a proposed total dividend for the year of 17.0 pence (2017: 14.1 pence), a year-on-year increase of 20.6% (2017: 12.8%), demonstrating our desire to deliver value to shareholders and confidence in the outlook for our business.
"Recent acquisitions and investments continue to perform well. Organic growth was supplemented by full-year revenues of £1.7m (2017: £1.2m) from the MC Trustees pension administration business acquired in September 2016 and our share of profits from Amati increased to £0.2m (2017: £0.1m). Amati has enjoyed strong growth in gross assets under management, which increased from £175.7m at the start of the year to £325.1m at the year end.
"Last month we announced the acquisition of Broughtons Financial Planning, which has a similar culture to Mattioli Woods and gives us new opportunities to grow and develop the client offering of the combined business. With increasing complexity and continuing consolidation across the key markets in which we operate, we expect there will be further opportunities to accelerate our growth by acquisition.
"We continue to invest in the Group as we look to build upon our success to date. I am delighted with the performance of our business over the last financial year and believe we are well-positioned to progress further towards the ambitious longer-term goals we have set."Read the whole results report here. 1. Excluding acquisitions completed in the current and prior financial years. 2. Annual pension consultancy and administration fees; ongoing adviser charges; level and renewal commissions; banking income; property, discretionary portfolio and other annual management charges. 3. Earnings before interest, taxation, depreciation, amortisation and impairment, excluding share of profit from associates. 4. Earnings before interest, taxation, depreciation, amortisation, impairment, changes in valuation of derivative financial instruments and acquisition-related costs, including share of profit from associates (net of tax). 5. Before acquisition-related costs, amortisation and impairment of acquired intangibles, changes in valuation of derivative financial instruments and notional finance income and charges. 6. Excluding £3.5m of VAT reclaimed on behalf of and to be repaid to clients.
7. Includes £286.0m (2017: £153.8m) of funds under management by the Group's associate, Amati Global Investors Limited, excluding £27.0m (2017: £12.1m) of Mattioli Woods' client investment and £12.1m (2017: £9.8m) of cross-holdings between the TB Amati Smaller Companies Fund and the Amati AIM VCT plc.