The senior team at a wealth management business, which has almost £10 billion of client assets under its control, is taking a pragmatic approach to the economic uncertainties ahead.
Management at Midlands-based Mattioli Woods said they have been advising investors not to take risks during the current global economic changes while at the same time looking to cut costs through efficiencies.
It comes as the business, which moved into a new headquarters in Leicester city centre a year ago, said revenues had dipped fractionally in the year May 31, to £58.5 million – following years of double digit growth.
Pre-tax profit was up 4.1 per cent, however, to £10.2 million, with client assets under management up 7.4 per cent at almost £9.4 billion.
Mattioli Woods, which was started in a garage 28 years ago by Ian Mattioli and Bob Woods, offers pension and wealth management support to what it calls the “higher end of the market”, including company directors and owner-managed businesses, professionals, executives and retirees.
It also provides employee benefit services for medium-sized and larger corporates.
Mr Mattioli, the listed company’s chief executive, said they had used economies of scale and operational efficiencies to cut client costs and deliver “sustainable returns” for shareholders.
He said that because Brexit and the overall global economic climate had taken its toll on the general investment market, they had been inclined, in recent months, to advise clients not to do anything which might impact on revenues.
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He said: “Businesses have to change. We have to be agile enough to work out when a change is coming, because otherwise if you are forced into a change it can be a 10 year issue.
“We are always thinking like that. Our clients were not shouting at us to remove £3.1 million in costs, for instance, but they trust us and we have to honour that trust and be better and more efficient.”
He said they were still taking on graduates and looking for a dozen or so new starters following a year of consolidation.
He told BusinessLive: “We have not been complacent and have changed the business to a position of strength.
“We are now up to 400 people, working primarily out of Leicester, which was about 300 when we moved back into Leicester.
“We could get another 2-300 people in here, and that’s before looking at weekend opening, should workmates want us to do that.”
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Mr Mattioli said over the years the business had acquired 22 other businesses and, with £23.2 million of cash in the bank there was still scope to bring in more, while growing organically.
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Simon Gibson, chief investment officer said funds under management were up due various reasons including an extra £500 million brought in through acquisitions and just over £150 million from new clients.
He said: “It’s been a pretty tough year for the financial markets but our portfolios have fallen less than the markets.”
On Brexit he said: “First things first, we have a political rainbow of clients and we are apolitical, but we have to be thinking about economic fall-out or benefits.
“But only 20 per cent of our asset management time has been about Brexit. The rest is thinking about things such as trade wars, concerns about global growth, currency issues, the Italian banks, inflation...
“So much is changing at the moment and we’ve got to continue flying the plane. We’ve got to continue what we’ve always been doing for clients and take a very pragmatic approach.
“Whichever side of the fence you are on there is a lot to think about, but for most of our clients their money is not in things that will be affected by Brexit.”
Mr Mattioli added: “With continuing consolidation across the key markets in which we operate, we expect there will be further opportunities to accelerate our growth by acquisition.
“We continue to streamline our business, drive increased efficiency and reinforce our purpose to grow and preserve our clients’ assets, while giving them control and understanding of their overall financial position.
“Uncertainty around Brexit will continue to impact investor and consumer sentiment in the short-term, but we are confident that our focus on addressing the changing needs of our clients will position us well to deliver future growth and continued sustainable shareholder returns.”