05/09/2006
Pensions consultancy play Mattioli Woods reported strong growth for the year to May and looks well placed to consolidate the burgeoning self-invested personal pension (SIPP) market.
Debuting on AIM in November by way of a placing priced at 132p, the company acts for more than 1,400 small self-administered pension schemes (SSAS) and SIPP clients (funds under trusteeship now total over £728m). In January, the group obtained approval for a SIPP scheme set up alongside Bank of Scotland, its fifth developed alongside a leading financial institution.
Last year, pre-tax profits eased from £2.7m to £2.2m after a slew of one-off costs, though turnover grew an encouraging 17.6% to £7.6m, with historic growth rates maintained despite the run-up to ‘A-Day’, the introduction of the Government’s pensions simplification legislation.
Chairman Bob Woods reported strong growth in the core SIPP business, as well as successful integration of the portfolios of Geoffrey Bernstein and Suffolk Life, which have both performed well since acquisition. Post A-Day, growth rates in the SIPP market have already quickened and rationalisation within the sector is under way, with acquisition opportunities being thrown up as ill-equipped smaller practitioners become squeezed. The SIPP market is growing on the back of disenchantment with insurance company schemes and the public’s determination to take control of their financial planning. ‘The SIPP market is becoming mainstream, not just for high net worth individuals, and our client base is expanding down the demographics’, commented Woods.
Trading on a historic p/e of 22 times (based on last year’s 10.1p of earnings), the tightly-held shares aren’t cheap. However, there's scope for margin improvement and growth prospects are strong in the ‘new era in pension planning’. Already on the dividend trail and looking to consolidate the SIPP market, Mattioli Woods is well worth holding.
| Market cap: | £37.76m |
| PE Forecast: | n/a |
| PE Historic: | 22 |
| Share price: | 221.5p |
| AIM | £38.12m |
221.00p
|
0.00p
|
|
| Other company articles: |
| 02/09/2008 |
| 02/06/2008 |
| 03/03/2008 |
| 21/02/2008 |
| 05/10/2007 |
Manage Your Finances
Money, tax and benefits : your official guide.
