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Mattioli Woods targets acquisitions

Mattioli Woods targets acquisitions

Financial services group Mattioli Woods is targeting acquisitions after posting increased profits of £5.6m.

Mattioli Woods published its results for the six months to the end of November 2018 which said the company was planning to grow despite market turmoil.

Ian Mattioli, the company's chief executive, said: "Although there is some caution around markets, we believe the group is well placed to secure further growth, both organically and by acquisition, and further consolidation within our core markets remains likely."

The company has a cash pile of £16.4m, although much of this is needed to comply with capital adequacy rules.

Mr Mattioli said: "Cash is invested to help organic growth, such as when we launched the structured products fund, but is also there if we find like-minded businesses.

"Which areas of the market we expand through acquisition depends on market conditions, when there is uncertainty, clients want us to advise them, and we do that.

"If the market conditions are different, then people make longer-term financial decisions, and that supports our investment management business."

Total client assets rose by 0.7 per cent to £8.79bn while revenues increased by 2.8 per cent to £29.2m.

Despite this, Mattioli Woods said it planned to lower clients' costs through "operational efficiencies".

These were the first set of accounts to contain a contribution from Broughtons Financial Planning, which Mattioli Woods bought last year.

Mattioli Woods, which acquired the company to expand its presence in the West Midlands, said the Broughtons business was "trading positively".

It also owns a stake in the Amati Fund Management business, a UK smaller company specialist investment house, which had AUM at the end of November of £308m, excluding assets run on behalf  of Mattioli Woods clients.

The company owns 49 per cent of Amati but recently chose not to exercise the option to acquire the rest of the business. Mr Mattioli said he was happy with the 49 per cent stake at this time.

david.thorpe@ft.com