Mattioli Woods: Profit slashed at wealth manager as it quit London
Profit at wealth manager Mattioli Woods was slashed by more than 90 per cent as it prepared to delist from the London Stock Exchange’s AIM, it has been revealed.
The Leicester-headquartered was acquired by London-based private equity firm Pollen Street Capital after the deal was first announced in March.
In its latest accounts, which have been filed with Companies House, Mattioli Woods said its pre-tax profit was cut from £11.9m to £1.1m as a direct result of increased overheads related to its acquisition.
However the results for the 12 months to 31 May, 2024, also show that the group’s revenue increased from £111.2m to £123.2m over the same period.
Total client assets rose from £15.3bn to £15.5bn in the year while its gross assets under management dipped from £4.8bn to £4.7bn.
Mattioli Woods described its latest financial period as a “momentous year of change” for the group ahead of it officially being taken private on 3 September, 2024.
A ‘paradigm shift’ for Mattioli Woods
A statement signed off by the board said: “As Mattioli Woods embarks on an exciting new phase with Pollen Street Capital as our key partner, the board considers that the change in ownership is a paradigm shift for the group and expects the current macroeconomic conditions and recent legislative changes to drive continued demand for high quality advice.
“We strive to deliver exceptional outcomes for our clients’ wealth and asset management needs in a responsible way, achieving continued growth across our core pillars of advice, investment and administration.”
It added: “We remain confident in the resilience of our business model and excited by the opportunity to accelerate growth and make meaningful progress towards our strategic goals that the Pollen acquisition brings to the group.”