Mattioli Woods profits bounce 3.7% with cost cuts

Mattioli Woods profits bounce 3.7% with cost cuts

Wealth management firm Mattioli Woods (LON:MTW) have booked a 3.7% rise in H1 profits on-year, and have attributed this success to cutting costs.

An improved business model

The company recorded below-par revenues but disappointing windfalls were offset by savings in operating costs. The news follows revenue growth in the previous financial year, along with success for the company’s counterparts.

Pre-tax profit for the six months through November rose to £5.6 million, with revenue up 2.8% to £29.2 million. Mattioli Woods have stated that its full year profit outlook was in line with expectations.

“I am pleased to report another period of sustainable profit growth, achieved against the backdrop of a complex market,” Chief Executive Ian Mattioli said.

“As highlighted in our January trading update, revenue growth in the period was slightly lower than expected due to a combination of the group reducing clients’ costs and general market conditions.”

“The financial impact of this was more than offset by the realisation of operational efficiencies and other administrative cost savings.”

“While there remains uncertainty around Brexit it will continue to impact markets and consumer confidence.”

“Our integrated model means we are well-positioned to proactively advise our clients and we anticipate we may see an increased demand for advice once the shape of Brexit becomes clearer.”

Mattioli Woods as a portfolio candidate

The firm have declared an interim dividend of 6.33p per share, an increase of 15.1% on-year.

The company’s share price has dipped in morning trading on Wednesday, with shares currently trading down 10p or 1.37% at 720p per share. Shore Capital analysts have reiterated their ‘Buy’ stance on Mattioli Woods stock, after upgrading their investment rating in January.