In Focus: Profitable advice business  

Mattioli Woods' revenue soars 70% after acquisitions

Mattioli Woods' revenue soars 70% after acquisitions

Mattioli Woods has seen its revenue soar 70 per cent in the year to May 31 after a string of acquisitions.

In a trading update to the stock exchange this morning (July 7), the wealth manager said its profit is in line with management’s expectations with assets under management rising £2.8bn to £14.9bn.

The wealth manager has been on a buying spree over the year, including the acquisition of its two largest to date, involving private equity firm Maven Capital Partners and financial planning business Ludlow Wealth Management. The deals were worth more than £143mn.

In May it completed the acquisition of Ferguson Financial Management, bringing in another £80mn of assets under advice

Chief executive Ian Mattioli said Maven Capital Partners generated a number of “significant performance fees” as a result of successful fund, VCT and investor partner exits.

He added that he expects the current challenging macroeconomic environment to drive increasing demand from clients, despite market movements expected to negatively impact the group’s investment-related revenues.

"However, the spectre of rising inflation typically creates an opportunity for further investment inflows as existing and prospective clients consider appropriately investing surplus cash to avoid suffering an erosion in value of savings in real terms,” he said.

Higher inflation will also impact employment, professional and occupancy costs in the company, Mattioli said, and the board will take a “rigorous and proactive” approach to cost management.

The group said it has a pipeline of strong acquisition opportunities.

Mattioli said: "We expect further consolidation within the wealth and asset management sector, and continue to see many new acquisition opportunities coming to market.  

“We will continue to assess and progress bolt-on opportunities as well as potentially more substantial opportunities in the longer term, with all potential transactions required to meet our strict investment criteria and due diligence procedures.”

The wealth manager currently has £54mn in cash.