Mattioli Woods has seen revenue rise by 69% buoyed by new acquisitions but profits dipped due to transaction costs, according to results for the six months ended 30 November 2021.
The group acquired eight businesses over the period including its two largest acquisitions to date of Maven and Ludlow.
Its employee benefits division posted revenues of £2.726m over the period largely unchanged from £2.721m for the six months ended 30 November 2020.
However the division grew its client base over the period to 785 from 736 in the first half of the year spread across a number of sectors, and the business was upbeat for this sector.
“Employers are increasingly encouraging staff wellbeing and retirement savings, which we expect to drive sustained growth in the UK employee benefits market,” the intermediary said.
“We believe the government’s emphasis on workplace advice represents an opportunity for us to realise synergies between our employee benefits and wealth management businesses. “
However, the results reveal the group’s professional indemnity insurance costs almost doubled from £313,000 for the six months to 30 November 2020 to £650,000 for the same period last year.
Revenue up, profits down
Overall profit before tax of £3.3m was down 23% from £4.2m in the first six months of 2021 driven by increased acquisition-related costs of £2.6m and the advice firm saw assets under management reach £15.1bn, up from £10.6bn in the first half of the year.
Ian Mattioli, chief executive officer, said: “Revenue of £49.9m was 69% higher than the equivalent period last year of £29.5m, driven by positive performances in our pensions consultancy and administration, and investment and asset management operating segments.
“Pleasingly, and in support of improved organic growth trends, the number of new clients on-boarded in the first half and net inflows into the group’s investment and asset management services are ahead of the equivalent period last year.
“This renewed momentum reflects the success of new business initiatives and strength of existing client referrals, with organic revenue growth in excess of 11% for the period, our strongest performance since 2018.
“These initiatives, alongside our increasingly diversified service offering, have also generated an increased pipeline of new business enquiries.”
Touching on the group’s acquisitions over the period, Mattioli revealed they contributed £19.4m of revenue in the period compared to just £2m the previous year.
Mattioli added the group’s trading outlook for the year remains in line with management’s expectations.
“We believe the group is well-positioned to grow, both organically and by acquisition,” he continued.
“We are committed to delivering our ambitious growth strategy and in doing so create a business that remains responsibly integrated for the benefit of our clients and well-positioned to deliver sustainable shareholder returns.”