Mattioli Woods Share Discussion Threads

[tysoepr] 11/9/2024 07:14

Have just had an e-mail from IG Index - they've taken my MTW holdings out of my ISA because they are no longer listed - so I'll now receive the funds outside the ISA too. So a CGT hit and funds taken out of my ISA wrapper. Anyone else getting this with other brokers?

[1c3479z] 08/3/2024 10:18

standard 30% premium offered, seems a bit mean considering the depressed share price the days before: 'interesting' rise in the price yesterday indicates the problem in matching the market when some people are acting on info not available to the market as a whole.

[terry topper] 08/3/2024 08:12

Takeover valuation looks a bit light I think

[andyh21mob] 11/2/2024 11:22

Anyone throw light on why MTW share price went from 630 to 490 Sept 2023, then recovered within a month?

Any thoughts on why analysts still saying their current 580 could attain 750/800?

[edmonda] 08/2/2024 09:32

"H1-24 showcases benefit of diverse income streams" - new research report available here:

H1-24 revenue (to 30 Nov 23) was up 8% y-o-y to £59.1m (H1-23: £54.9m), with 4% organic revenue growth. H2 revenue is typically higher than H1 due to end of tax-year advice and H2 bias of client year-ends, and we maintain our FY24 revenue forecast of £123.6m (+11% y-o-y). Adjusted EBITDA grew 10% from £15.0m to £16.5m with positive effects from organic growth (409 new clients, +13% over H1 23) and a changing revenue mix towards higher-yielding services.

The core pensions business was the standout performer with 21% revenue growth, driven by strong demand for advice and increased banking margin on cash balances.

MW has a strong net cash position of £32.7m, after paying £9.3m of dividends and £6.2m of acquisition-related payments. MW has no debt. Management maintains a confident outlook, with the interim dividend up from 8.8p to 9.0p.

Our revenue forecasts are unchanged with adjusted EBITDA forecasts down slightly due to lower Amati profits but statutory profits increase on higher net finance income. Our fundamental valuation remains unchanged at 900p per share (53% above the current share price). With powerful longer-term structural tailwinds supporting the wealth management sector (see page 16), we think a sector-median PER of 15.7 is too low. Moreover, with MW being so well positioned (page 17), we find it strange it’s PER of 12.3 is below this median. We see potential for a re-rating.

[edmonda] 09/1/2024 07:36

"On track for 10% annual revenue & profit growth", new research report here:

H1’24 revenue (to 30 Nov 23) totalled £59.1m, 8% up y-o-y (H1’23: £54.9m), with 4% organic revenue growth. H2 revenue is typically higher than H1 due to end of tax-year advice and H2 weighting of client year-ends, and we maintain our FY24 revenue forecast of £123.6m (+11% y-o-y).

MTW remains in a strong net cash position (£32.7m v £45.0m on 31 May 23), giving scope to pursue opportunities. Cash is as expected with c. £9.3m paid in dividends and some tranche-payments of previous acquisitions made. We expect cash to exceed £40m by year-end.

As in FY23, MTW has reported growth within the core pension consultancy and employee benefits business segments, with the proposed changes to pension and tax rules announced in the Chancellor’s recent Autumn Statement driving strong demand for advice.

Our sector PER analysis suggests potential for a rerating of both the sector and Mattioli Woods, where our fundamental valuation remains 900p / share, 50% above the current price.

[yf23_1] 02/11/2023 00:02

2.5m at the mid today.
interesting.

[yf23_1] 01/10/2023 21:59

There's quite a difference between the underlying and statutory profit. Is that normal to include contingent remuneration (from the takeover) in adjusted EBITDA. Also the software costs. Surely that's part of running the business.
How much contingent remuneration is left ?

[edmonda] 19/9/2023 14:44

FY Results - Investor Presentation video (15 September 2023)

Mattioli Woods plc (AIM: MTW.L), the specialist Wealth and Asset Management business, conducted an investor presentation by Webinar after their final results for the year ended 31st May 2023.

Ian Mattioli, MBE (Chief Executive Officer), Ravi Tara (Chief Financial Officer) and Michael Wright (Deputy CEO) ran investors through the purpose of Mattioli Woods and a review of financial period highlights - which included an increase in Assets Under Management and revenue, as well high ongoing levels of cash generation. Management discussed their organic growth initiatives, their integrated model and strategic plan, before answering a wide range of questions from viewers.

The full video has been divided into chapters as below:
0:00:00 Beginning & Agenda
0:00:29 Purpose (Ian Mattioli, CEO)
0:13:29 Highlights & Financial Overview (Ravi Tara, CFO)
0:28:22 Market opportunity, strategic plan, capacity for growth (Michael Wright, Deputy CEO)
0:49:57 Investment Case & Conclusion
0:54:49 Questions & Answers

Full video presentation:

[edmonda] 05/7/2023 06:58

Trading update from Mattioli Woods of FY23 profits in line and healthy pipeline. Equity Development publish new research showing PER of 13 is 20% below a peer group median of 16.2 and calculate a fundamental valuation of 900p that is 45% above the last close.

Read full new note / hear summary here:

[elsa7878] 21/4/2023 12:22

Yes agreed though it's only £1 million.

[spooky] 20/4/2023 17:06

Might be worth including the cash held by the company they are acquiring when assessing whether its expensive or not IMO.

[elsa7878] 20/4/2023 12:42

Expensive acquisition(from a historical perspective) in line with my previous post. About 14 x post-tax before any synergy savings. Accretive to earnings as it it funded mostly by cash on the balance sheet that is not earning much. Need to show some impressive organic growth to hit their medium term targets and get anywhere close to 950p.

[edmonda] 20/4/2023 07:46

Doherty is a leading player in N Ireland and its purchase adds £635m of AUA and c 1,320 private clients to MTW.

Equity Dev expect the deal to be value accretive and have a Fair Value of 950p/share.

You can read/hear their new note with free access here:

[elsa7878] 05/4/2023 11:53

Yeah I was watching the FD's last presentation when he talks about the fact that acquisition targets which they could pick up for around 6-8 x EDITDA are now at least 10-12 x and in some instances going for 14-16 x. Those rates apply to small IFA targets not "proper businesses like this". FWIW this trades on less than 12 x (allowing for the excess cash on the balance sheet - approx 60p per share).

[spooky] 05/4/2023 11:07

With consolidation continuing in the sector, there is every chance that there will be a bid for MTW in my opinion.

[elsa7878] 27/2/2023 14:17

Now on a forward PE of 12 (11 x net of cash). Been thinking of buying for a while. Any views as its not a sector I know well? Seems to have good defensive characteristics with >90% of revenues recurring and a decent dividend which is heading towards 5%.

[elsa7878] 09/2/2023 13:44

BUY: Mattioli Woods (MTW)

The specialist wealth manager appears to have ridden out the worst of the autumn financial storms, writes Julian Hofmann.

The trials and tribulations in asset management are well documented over the past 12 months. While the big companies have struggled, smaller players such as Mattioli Woods have held the line against wholesale asset price falls and customer withdrawals, though even MTW recorded a 2 per cent fall in client assets to £14.6bn. In such a difficult market, the key differentiator seems to be whether asset managers also class themselves as general wealth managers, as this market segment has proved to be far more stable.

Mattioli Woods is no different in this regard. The company’s main strength continues to be the recurring fees from managing client money stashed in pensions, or discretionary investments. Recurring revenues made up nearly 90 per cent of total sales, up from 88 per cent last year. This was positive given that the half encompassed some of the worst of the market turmoil triggered by last autumn’s “mini” Budget. The rising interest rate environment is also interesting for the company, which has the option of deploying its capital in the money broking market and earning better interest, while doing the same for its Sipp customers.

Management attributes this to the company being able to earn fees from discretionary advice when markets are bad, while still being pulling customers to its platform via referrals. Acquisitions have also played their part, with the company earning £20mn of revenue from businesses acquired since the end of 2021.

Mattioli offers an interesting combination of inherent operational gearing and resilient revenue streams through its advisory businesses. The shares have eased back slightly since the summer but the forward price/earnings ratio of 13, based on FactSet consensus, is unchanged.

[edmonda] 08/2/2023 10:22

After robust interims(despite challenging markets)and a confident Management outlook, Equity Development keeps its fundamental valuation at 950p per share (over 50% above current price)

As you can read in detailed new research note + audio summary here (free access):

[spooky] 17/1/2023 14:34

Still working through the seller nicely. Should have a nice pop when they are done IMO.

[edmonda] 05/1/2023 12:01

Mattioli Woods: On track to meet forecasts, positive outlook (new research post this morning's Trading Update)

Link to note:

Mattioli Woods (MW) has reported H1-23 revenue (to 30 Nov 22) of £54.9m, 10% up y-o-y (H1-22: £49.9m), with organic revenue growth of over 2%, despite a challenging environment. It remains in a strong financial position, with net cash totalling £38.3m at the end of the period.

Total client assets closed H1 on £14.6bn, a 3.2% y-o-y fall from £15.1bn on 30 Nov 21, but a creditable performance considering the PIMFA Private Investor Balanced Index (net) fell 3.8% over the same period. Gross discretionary AUM totalled £4.9bn, 4% down y-o-y (30 Nov 21: £5.1bn) but pleasingly, positive net inflows of £38.1m was achieved (+0.8% of opening AUM).

MW has highlighted several factors that suggest confidence in the H2 outlook, which remains in line with previous expectations:
- as in previous years, H2 revenue expected to exceed H1 due to end of tax-year advice and second half weighting of client year-ends;
- value of new clients on-boarded in H1 over 10% up y-o-y;
- increased new business pipeline despite market conditions, solid acquisition pipeline;
- all recent acquisitions integrating well, trading in-line or ahead of budget, and have delivered earnings to support full payment of any contingent consideration;
- joint-fundraising between MW and Maven (acquired Jun 21) continued to gain traction with two recent Investor-Partner deals;
- discretionary managed funds performed in line with benchmarks;
- digital client experience enhanced with launch of MWise online investment platform;
- Amati AIM VCT won VCT AIM Quoted Category at Investment Week's Investment Company of the Year Awards 2022.

MW remains on track to meet our forecasts for FY23 and our fundamental valuation of 925p which is 47% above the current share price, remains unchanged. We have updated our peer-comparison valuation which also suggests potential for a re-rerating. MW’s PER of 13.0 is 29% below a wealth management peer group median of 18.2.

[sphere25] 16/11/2022 15:02

Watch the movement. Market makers are shifting up after the big mopping up at 540p. Buyers have been mopping up at 560p as well and now a few buyers have spotted the movement.

It really needs to break 600p and the bounce would be on. The spread is a pain here, its not a trading share but maybe some relief for longer term holders if it does pop through 600p. CFO bought a decent chunk of 36,171 here too, no idea why they announce it at 18:05 though.

Someone has just paid through the offer of 580p for 7.7k, paying 600p.

Might have been tipped. Maybe someone on social media with decent followers. Unsual stream of buys.

All imo
DYOR

[sphere25] 11/11/2022 13:11

Taken a small amount here. Curious to see if there is follow through in the market on the back of the big mopping up here.

So the research is there for all to see, but how about the activity in the market to get a possible bottom or even a big bounce?

They're in the market sniffing out value here today - decent yield, clean balance sheet, trading well enough right now so perhaps too big a fall?

It would be bizarre if the chart mimicked the covid move here. Big lurch down to almost identical levels and then a big spike back. The question will be can it lurch back higher?

Worth a watch here as over 5% of the issuance exchanged. Buyers in size have appeared today at 540p and the price has moved higher on the back of it. That looks like buyers have said enough is enough (on the value front) and we're coming in to buy big (and possibly clear all or majority of sellers) to hold for the long term at 540p.

The spread is a pain. If that was tighter, might have been worth a bigger go. More for longee term folk this this one, but the activity and chart movements might turn out to be interesting.

All imo
DYOR