Wealth Management Expansion Bumps Up Revenues, Profit At Mattioli Woods

Eliane Chavagnon

30 January 2013

Mattioli Woods, the UK-based pensions consultancy and wealth management business, logged strong revenues and profits in the six months ended 30 November 2012, which the firm attributes to expanding wealth management services and recent acquisitions.

Revenues were up 29.4 per cent to £11.26 million (about $17.71 million) at 30 November, while adjusted profit before tax rose to £2.52 million - an increase of 26 per cent. The firm also reported a 13.3 per cent hike in total client assets, which ended the six-month period at £3.24 billion.

In August of last year the firm rolled out its discretionary portfolio management service, which it said stands at the centre of its broader wealth management proposition. At end-November, the service had already garnered £51.2 million in assets under management. Meanwhile, wealth management revenues rose 35.2 per cent to reach £2.92 million at 30 November 2012, while investment fees and commissions (excluding DPM revenues) were up 18.3 per cent to £2 million.

“From 1 January 2013, our investment advisory revenues comprise advisor charges based on the value of assets under advice at the start of each quarterly billing period, replacing all upfront and ongoing commission payments,” the firm said in a statement.

Executive chairman Bob Woods said the Retail Distribution Review brings “major structural changes” to his firm’s sector, but creates “enormous opportunity for forward-thinking organisations”.

Woods added: “Against this backdrop, our rebranding last autumn was particularly well timed. The duality inherent in being both product provider and advisor is a strong model, which will continue to offer benefits to clients and create value for shareholders.”