Mattioli Woods’ cost cutting efforts are beginning to bear fruit as it teases a return to revenue growth and stronger profits with the wealth manager predicting events like the high-profile suspensions of Woodford Equity Income and the M&G Property Portfolio could provide a further boost to flows.
In a trading update ahead of its interim results, the Leicester-based wealth manager revealed an improving margins picture over the first half of its financial year ended 30 November 2019 following rounds of staff cuts and an overhaul to its client facing operations.
Mattioli Woods’ total headcount fell from 624 to 604 at the time of its interim report last year and over the year to the end of May that figure had fallen to 586.
Chief executive Ian Mattioli (pictured) hailed the figures as an impressive achievement considering the continued backdrop of market and political uncertainty which he said had eaten into flows from the group’s own bespoke investment services.
“I am pleased to report a return to revenue growth in the first half of this financial year, with increases in direct SSAS and Sipp fees and investment-related revenues,” Mattioli said.
“We have driven some further margin improvement, with additional efficiencies and cost savings realised following a planned restructure of our client facing operations and the migration of acquired pension portfolios onto our bespoke MWeb administration platform. These changes have been designed to enhance client service and experience, receiving positive feedback both internally and from clients.”
Woodford Equity Income blowup could provide boost to business
Total assets reached £9.4bn at the end of the period, while gross discretionary assets hit £2.7bn.
Despite seeing weaker inflows into its bespoke proposition, Mattioli predicted the implosion of the Woodford Equity Income fund and suspension of the M&G Property Portfolio, as well as the general election outcome, would provide a boost to business.
“We plan to build on the progress achieved in the first half over the remainder of this financial year,” he said.
“Events such as the suspension of the Woodford Equity Income Fund and the M&G Property Portfolio are likely to drive an increased demand for the holistic planning and expert advice we provide, and I anticipate greater client activity and increasing inflows into our bespoke investment services following the definitive general election result last month.”
Mattioli said the firm would continue to invest in people and technology and would seek out further M&A opportunities.
Toward the end of December Mattioli Woods stumped up £1.6m to buy the Turris Partnership, a financial planning firm founded by Brian Steeples, a deal which saw it absorb £65m in assets.
The year before it picked up Ssas Solutions and Broughtons Financial Planning.
Mattioli Woods will publish its interim results on 4 February.
