Mattioli Woods Plc  

Mattioli Woods makes £3.7m Covid savings as profits rise

Mattioli Woods makes £3.7m Covid savings as profits rise

Cuts to director’s basic salaries and bonuses amid the coronavirus pandemic, as well as closer management of costs, has resulted in Mattioli Woods saving £3.7m since April, which in turn has helped it to grow profits amid the Covid-19 pandemic.

In a trading update, published this morning (July 14), the wealth manager reported it had saved £150,000 after all directors reduced their basic salary in April, with a further £2.7m in cost savings after the firm decided to not pay any staff bonuses for the current financial year.

An extra annual saving of £400,000 is also expected due to executive directors’ salaries being temporarily rebased, with close management of businesses costs also looking to save £400,000.

The actions taken by the firm to weaken the effect of Covid-19 on the business has resulted in profits now being ahead of expectations.

Ian Mattioli, chief executive of Mattioli Woods, said: “The board is positive about the group's prospects given all the actions we have taken to reinforce its financial position, ensuring we remain a business that is sustainable and here for the long term.  

“Creating and preserving wealth, our focus remains on ensuring our trusted advice gives clients the understanding to achieve their objectives."

According to the update, Mattioli Woods has experienced both revenue and profit growth in the year ended May 31, 2020, despite “political and economic uncertainties”.

This comes despite Covid-19 causing a reduction in the firm’s income streams, which are linked to the value of clients assets, in the final quarter of the year.

Mr Mattioli also stated that despite challenges from Covid-19, the firm is looking to grow both organically and through acquisitions.

Later this month, it expects to complete its acquisition of Hurley Partners, with previous acquisitions, such as Ssas Solutions and Broughtons Financial Planning, also contributing positively to the firm’s trading results.

Director role changes

In its update, the firm announced chief financial officer, Nathan Imlach, will be stepping down in October 2020 after 15 years in the role.

However, he is expected to stay with the firm in the role of chief strategic adviser where his focus will be on acquisitions.

He will be succeeded by Ravi Tara, currently group finance director, who joined the company a year ago as part of its succession planning.

Mr Mattioli said: “The group is in a strong financial position and following the completion of the acquisition of Hurley Partners it will continue to have significant cash balances and headroom on its regulatory capital requirements.  

“I would like personally to thank Nathan for his contribution to the success of the group, including our admission to AIM in 2005, the launch of Custodian REIT as a main-market listed property investment company in 2014 and the completion of 23 successful acquisitions to date. 

“As Nathan continues his career with Mattioli Woods, we look forward to continuing to benefit from his experience and insight, at a time when we are seeing a greater number of strategic acquisition opportunities than we have ever seen before.”