Mattioli Woods Plc  

Mattioli Woods on hunt for more acquisitions

Mattioli Woods on hunt for more acquisitions
Chief executive officer of Mattioli Woods, Ian Mattioli

Mattioli Woods is seeking further acquisitions after shaking on deals worth £143mn last year which boosted its revenue by more than 70 per cent.

In its final results for the year ended May 31, 2022, the wealth manager said there are “many more opportunities” across wealth and asset management, as well as with self-invested personal pension administration.

Back in July, Mattioli Woods reported a 72.8 per cent revenue uptick between May 2021 and May 2022. It jumped from £62.6mn the previous year to £108.2mn.

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In May 2021, the company bought private equity firm Maven Capital Partners and financial planning business Ludlow Wealth Management. 

Acting as a subsidiary, Ludlow has since bought a Glasgow-based adviser in a deal worth up to £1.2mn.

Mattioli Woods has completed nine acquisitions in the past two years, though Maven and Ludlow have been the biggest purchases made by the firm to date.

Chief executive officer Ian Mattioli said today (September 13): “We shall continue to seek further acquisitions, building on our well-established track record and benefitting from ongoing consolidation within the wealth and asset management sector.”

The wealth manager’s boss added that the firm is continuing to assess and progress opportunities which meet its criteria.

“Consolidation within wealth management, asset management and Sipp administration is expected to continue for the foreseeable future, with many more opportunities coming to market,” he said.

The firm’s ‘medium-term’ aims continue to be £300mn in revenues, £30bn of assets and £100mn in earnings.

Currently, revenues sit at £108.2mn, gross discretionary assets under management at £5.1bn, and earnings at £32.6mn.

Mattioli Woods’ adjusted profit before tax of £29.5mn was up 107.7 per cent.

Partly driven by its acquisition strategy, the firm said it was also buoyed by an increased share of profit from specialist fund manager Amati, which it bought a 49 per cent stake in back in 2017.

On the pensions side of the business, Mattioli Woods recorded 1,084 new Sipp, Ssas and personal clients, compared with 898 the previous year.

The firm also echoed earlier warnings that cost inflation and its investments in people and technology are expected to impact margins in the short term.

The group's total headcount has increased to 847 in May, compared with 663 employees at the end of May 2021. The company also increased its stake in the technology partner Tiller.