Mattioli Woods has today (9 September) bought Taylor Patterson Group and its subsidiaries for up to £8.3m and revealed their results for 2015.
Taylor Patterson was founded in 1979 and provides wealth management and employee benefits services to a broad range of personal and corporate clients. It specialises in providing strategic financial planning.
The management team will be retained by Mattioli Woods following the acquisition which will see £5m paid upfront, comprising of £2.5m in cash and 419,888 new ordinary shares of 1p each in Mattioli Woods, which are valued at £2.5m based on the closing price of a Mattioli Woods on 8 September 2013.
Up to £3.3m will be payable in cash in the three years following completion of the deal if certain financial targets are met based on growth in revenues and earnings before interest.
For the year to the end of July 2015, Taylor Patterson generated a profit before taxation of £0.90m on revenues of £3.21m.
Taylor Patterson’s consolidated net assets were £0.79m at 31 July 2015.
Taylor Patterson’s wealth management operations include Ssas and Sipp administration.
Ian Mattioli, chief executive of Mattioli Woods, said: “This acquisition is an important step for Mattioli Woods, as we continue to expand our operations.
“Taylor Patterson is a great fit culturally and strategically, serving a similar client base to our existing business, while expanding our geographic footprint into the north west of England.”
Gillian Bardin, Taylor Patterson’s managing director, said: “We are all very excited about this next chapter in the Taylor Patterson story. As we have got to know the team at Mattioli Woods, we know we share the same culture and values in building long-term relationships with clients and professional introducers.
“We are looking forward to continuing to deliver clear, flexible and high-quality, client-focused financial solutions, while introducing the new possibilities that being part of the Mattioli Woods Group brings.”
Also today Bob Woods, executive chairman of Mattioli Woods, reported for the year to the end of May revenue was up 17.8 per cent to £34.57m (compared with £29.35m in 2014) as a result of strong growth in our wealth management business, with the government’s new pension freedoms creating additional demand for advice.
Total client assets under management, administration and advice increased by 16.8 per cent to £5.41bn at the year-end.
Growth in fees based on the value of clients’ assets under management and advice increased recurring revenues to 81.4 per cent of revenue, with the value of discretionary assets under management now in excess of £1.01bn.
ruth.gillbe@ft.com
