Mattioli Woods reports rise in profits as it buys rival Taylor Patterson

 
Joseph Millis
Mattioli Woods yesterday reported higher pre-tax profit on the back of new pensions freedoms in the UK.

The wealth management and employee benefits business also announced that it has agreed to acquire rival Taylor Patterson Group for up to £8.3m as it looks to expand.

In a statement, Mattioli Woods said it made a £5.3m pre-tax profit in the year ended 31 May, compared with £5.1m in the prior year. It lifted its dividend for the year to 10.5p from 9.1p.

Revenue rose to £34.6m from £29.3m. After subtracting costs such as benefits for the company’s own employees, administration, share based payments, amortisation and impairment, and depreciation, operating profit rose to £5.4m from £5.1m excluding financing costs.

Executive chairman Bob Woods said that new pensions freedoms introduced by the UK government have created more demand for financial advice.

He added:“I am pleased to report another year of growth, in line with our expectations… Our total client assets under management, administration and advice increased by 16.8 per cent to £5.41bn at the year-end. Growth in fees based on the value of clients’ assets under management and advice increased recurring revenues to 81.4 per cent [2014: 78.1 per cent] of revenue, with the value of discretionary assets under management now in excess of £1.01bn.”

Meanwhile, the acquisition of Taylor Patterson, which required an initial payment of £5m split between cash and Mattioli Woods shares, gives Mattioli Woods a business based in Preston, Lancashire that made a £900,000 pre-tax profit on revenue of close to £3.2m in the year ended 31 July.

Its shares closed up 4.69 per cent at 625p yesterday.