The specialist AIM-listed wealth manager and employee benefits house reported that revenues for the six months to 30 November 2017 were up more than 16% year-on-year in a prelude to its interim figures, due out on 6 February 2018.
Its EBITDA margin also came in 20% ahead of target in what group chief executive Ian Mattioli called another period of “strong and sustainable growth” for the firm. The group confirmed that profit outlook for the year remains in line with expectations.
The sustained revenue growth comes at a time when the firm has made a concerted effort to slash costs across the board.
Securing better economies of scale through a more aggressive M&A strategy has allowed the firm to cut costs, including clients’ total expense ratios, bringing in higher volumes of new business.
It has also reduced the custody charge for clients using its core investment platform on 1 August 2017 at the same time it launched a new range of multi-asset funds. The value of assets held on the platform grew from £1.2bn to £1.5bn over the reporting period.
“Being open and transparent about reducing costs has led to higher business volumes for the group overall,” said Mattioli. “As our business grows, I expect operational gearing will allow us to further improve the client offer.”
In Monday’s update, Mattioli reiterated that “acquisitions continue to be a core part of our growth strategy” and “further consolidation within our core markets remains likely”.
Most recently, it purchased a 49% stake in Edinburgh fund manager Amati Global Investors and MC Trustees in September 2016, both of which have helped boost total revenue. Amati has added some £214 of funds under management to the firm’s total assets.
The wealth manager also reported “an increasing flow of organic new business” generated by its consultancy team and “strong inflows” into its asset management group, which includes its discretionary portfolio management service, structured products business and a Reit managed by subsidiary Custodian Capital.
Gross discretionary assets under management from its investment activities reached £2bn, growing from £1.63bn in the six months since its final results.
Total assets under management now stands at £8.3bn.
“I am delighted to report the six months ended 30 November 2017 represented another period of strong and sustainable growth,” Mattioli added.
“The inherent flex within our business model allows us to adapt quickly to address our clients’ changing needs. As we seek to broaden our proposition, organically and by acquisition, I expect Mattioli Woods’ capabilities as adviser, provider and asset manager to deliver improved client outcomes and secure further profitable growth going forward.”
