News

27 January 2009

Interim Results

Mattioli Woods plc (AIM: MTW.L), the specialist pensions consultancy, reports its Interim Results for the six months ended 30 November 2008.

Highlights

Revenue up 29.2% to £6.85m (1H08: £5.30m)
Profit before tax and amortisation up 11.9% to £2.16m (1H08: £1.93m)
Adjusted EPS* up 12.9% to 8.93p (1H08: 7.91p)
Interim dividend up 15.0% to 1.15p (1H08: 1.00p)
Core funds under trusteeship up 27.3% to £1.4bn (1H08: £1.1bn)
Core schemes up 23.9% to 2,517 (1H08: 2,032)
Average scheme value of £0.61m (1H08: £0.53m)
Cash at period end £1.50m (1H08: £2.24m)

* Before amortisation of intangible assets. Basic EPS up 10.1% to 8.06p (1H08: 7.32p)

Commenting on the Interim Results, Bob Woods, Executive Chairman of Mattioli Woods, said:

"We have continued to deliver strong growth over the six months ended 30 November 2008, with revenue up 29.2% and profit before tax and amortisation up 11.9% compared to the same period last year. A great strength of our business is that irrespective of asset allocation, our clients' funds remain within their pension schemes, and hence under our trusteeship. The Group also benefits from having developed multiple revenue streams, a high proportion of which are recurring. Core funds under trusteeship had increased 27.3% to £1.4bn (1H08: £1.1bn) at the period end, primarily as a result of our acquisition of the JB Group in February 2008.

"Following the consultancy team's focus on existing clients' affairs during the unprecedented downturn in financial markets, I am delighted with organic growth of 110 new schemes (1H08: 125) at an increased average value of £0.45m (1H08: £0.43m). We have also enjoyed stronger client retention, with our overall client loss rate falling to 1.6% (1H08: 2.7%).

"The mix of investment-related revenues adjusts as we develop our dynamic pension investment strategies to take account of changes in economic conditions and the underlying needs of our clients.

"The volatility in global markets has made life more challenging for investment advisors generally and left many people in the UK fearful of the impact on their retirement wealth. However, their heightened concern confirms our historic experience that demand for bespoke, high-quality pension advice increases during periods of uncertainty.

"I have indicated before that all SIPPs are not the same, with the market ranging from the extremely flexible, bespoke product offered by Mattioli Woods, through "hybrid" or "deferred" SIPPs primarily promoted by the large insurance companies, to low-cost SIPP "wrappers" available on-line. As we anticipated, concern over mis-selling by some IFAs has led to the FSA initiating an industry wide review of such activity. I anticipate this will bring increased regulation to the SIPP market, enabling us to highlight clearly the advantages of the proactive "added value" services we offer our clients.

"Trading in the current period continues in line with expectations and I believe we are well-positioned to further differentiate ourselves from our competition in managing the challenges that lie ahead. I remain confident of our ability to take advantage of the opportunities being created to deliver additional value to shareholders.

The full results are available to view and download in PDF format.

For further information:

Mattioli Woods plc
Bob Woods, Executive Chairman	Tel: +44 (0) 116 240 8700
bob.woods@mattioli-woods.com	www.mattioli-woods.com
Ian Mattioli, Chief Executive	Tel: +44 (0) 116 240 8700
ian.mattioli@mattioli-woods.com	www.mattioli-woods.com
Nathan Imlach, Finance Director	Tel: +44 (0) 116 240 8700
nathan.imlach@mattioli-woods.com	www.mattioli-woods.com

Evolution Securities Limited
Joanne Lake, Corporate Finance	Tel: +44 (0) 113 243 1619
joanne.lake@evosecurities.com	www.evosecurities.com

Media enquiries:

Abchurch Communications
Sarah Hollins / Chris lane	Tel: +44 (0) 207 398 7708
sarah.hollins@abchurch-group.com	www.abchurch-group.com