Pensions  

Mattioli Woods buys rival Sipp provider

Mattioli Woods buys rival Sipp provider

Mattioli Woods will purchase Sipp provider MC Trustees for a total of up to £2.2m.

MC Trustees provides pension administration and trustee services to more than 1,500 self-invested personal pension and small self-administered scheme clients with more than £400m of assets under administration.

Mattioli Woods will retain MC Trustees management team following the purchase, which is expected to enhance earnings during the first full year of ownership.

In addition to the acquisition of MC Trustees, Mattioli Woods has reached an agreement in principle, subject to contract, to acquire MC Malta for a total consideration of up to £0.6m.

Mattioli Woods also today (8 September) published its results for the year ended 31 May 2016 which showed earnings before interest, taxes, depreciation and amortisation were up 25.7 per cent to £9.3m against 2015’s £7.4m.

Earnings per share were up 14 per cent to 31p against 2015’s 27.2p and revenue was up 24.3 per cent to £43m against 2015’s £34.6.

Total client assets were up 22.2 per cent to £6.61bn against 2015’s £5.41bn, while discretionary assets under management were up 15.8 per cent to £1.17bn against 2015’s £1.01bn.

The firm added in its results it expects increased demand for advice post-Brexit and there was a strong pipeline of further acquisition opportunities.

Ian Mattioli, chief executive of Mattioli Woods, said: “This acquisition is another important step forward for Mattioli Woods, as we continue to expand our operations.

“MC Trustees is a great fit culturally and strategically, serving a similar client base to our existing business, while complementing our current operations in the East Midlands”.

“The MC Trustees team has a proven ability to win high-quality new business and the transaction gives us an exciting new distribution channel for Mattioli Woods’ services. I believe this will strengthen our position in a market that is continuing to consolidate.”

Bob Woods, executive chairman of Mattioli Woods said: “Acquisitions are a core part of our growth strategy and the five acquisitions completed in the year are integrating well.

“The acquisition of MC Trustees, which we announced today, is another excellent strategic and cultural fit with our existing business and we continue to seek further value-enhancing acquisitions.

“The accelerating pace of consolidation within the Sipp market is putting smaller operators under increasing pressure to join forces with larger firms. I expect this trend to continue following the introduction of increased regulatory capital requirements for Sipp operators on 1 September 2016.”

Earlier this week, rival Sipp provider Curtis Banks Group ruled out any purchasing “distressed Sipp books.”

Sipp providers are expected to consolidate as a result of changes to capital adequacy requirements for providers that came in last week, on 1 September.

First announced by then Financial Services Authority in November 2012, Sipp operators have been required to increase the capital they hold in reserve.

The new formula has resulted in a significant increase in capital requirements for Sipp operators whose assets contained the greatest proportions of non-standard assets.