Mattioli Woods has seen revenue increase by 20 per cent during the second half of 2015 to £19.9m, compared with £16.6m during the first half of the year.
The wealth management and employee benefits firm’s interim results for the six months ended 30 November 2015 showed assets under management and advice were up 29.5 per cent to £6.49bn, from just over £5bn during the first half.
Discretionary assets also rose 24.1 per cent to £1.08bn £870m in the previous six months.
Three acquisitions were completed during the period for an initial consideration of £6.16m cash, plus £3.70m shares, while a deferred consideration of up to £5.80m was payable.
Chief executive Ian Mattioli said the positive impact of new business wins and recent acquisitions more than offset a £660,000 fall in banking income, following the further cuts in interest margin the business had anticipated.
The results recorded this as net organic revenue growth of 12 per cent - down from just over 20 per cent in the first half of 2015 - excluding the impact of expected cuts in banking margin.
The group’s banking revenue fell 78.6 per cent to £180,000 - from £840,000 during the first half -following the introduction of new rules on liquidity cover that make it more onerous for banks to hold client pension scheme deposits, reducing the interest rates available on these deposits.
This also impacted cash generated from operations, which fell £1.67m or 41.3 per cent of earnings before tax - from £2.94m or 81.4 per cent in the first six months of 2015 - with the cash conversion ratio adversely impacted by the £660,000 fall in banking revenues.
Mr Mattioli said: “Strong demand for advice and the continued development of our consultancy team has driven increased new business flows, which together with the three acquisitions completed during the period increased total client assets under management, administration and advice by 29.5 per cent to £6.49bn.
“Acquisitions continue to be a core part of our growth strategy and we anticipate there will be further opportunities to expand the group’s operations by acquisition,” he stated, noting in June the firm raised gross proceeds of £18.6m in a placing to help pursue further acquisitions.
“We have put that money to good use by acquiring Boyd Coughlan, the Taylor Patterson Group, Lindley Trustees’ pension business and, as announced today (2 February), Maclean Marshall Healthcare.”
Maclean Marshall Healthcare is a specialist healthcare and protection business based in Aberdeen, which introduces an experienced manager and around 80 new corporate clients to the group, adding further scale to our employee benefits business.
Client assets attributable to the acquired businesses of Boyd Coughlan, Taylor Patterson and Lindley Trustees at the period end were £249.4m, £632.5m and £116.6m respectively, with net organic growth in total assets under management, administration and advice of £76.1m during the period.
The deals lead to an increase of £68.5m in self-invested personal pension and small self-administered scheme funds under trusteeship, following a net 1.2 per cent increase in the number of schemes being administered at the period end;
It also meant a £38.1m increase in other personal and pension assets under management and advice, with 154 new personal clients won during the period; and a £30.5m fall in the value of assets held in those corporate pension schemes advised by Mattioli Woods’ employee benefits business.
Mr Mattioli suggested that further consolidation in the Sipp market remains likely, with increased regulatory capital requirements for Sipp operators coming into effect from 1 September.
“The balance of funds raised by way of the placing gives us the flexibility to make further value-enhancing acquisitions.”
peter.walker@ft.com
