Wealth management group Mattioli Woods has revealed a reduction in staff numbers as it looks to make “operational efficiencies” to scale the business.
In financial results this morning, Mattioli says there had been “some redundancies” as it relocated parts of its business due to an office lease expiring, and that overall headcount had fallen from 622 in the first half of 2018 to 604 at 30 November.
The reduction in headcount includes “consultants” at the firm, whose numbers have fallen from 130 to 120, as the heads of some acquired businesses chose to retire after their earn outs and Mattioli set up a new consultancy development programme in December.
Mattioli decided to exit the defined benefit transfer market in June. This morning’s results say that the decision was based on the “increasing costs of professional indemnity insurance, additional regulatory controls and the resources we would have to dedicate to this small part of our business”, and that the financial impact of the move is “not expected to be material”.
Overall, revenue at the firm was up 2.8 per cent for the six months ended 30 November to £29.2m, with pre-tax profit up 3.7 per cent to £5.6m.
Mattioli chief executive Ian Mattioli says: “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.
“Unlike many wealth managers, the majority of the group’s revenues are fee-based, rather than being linked to the value of assets under management, administration or advice, giving our business a revenue
profile that is less sensitive to market performance.
“Although there is some caution around markets, we believe the group is well placed to secure further growth, both organically and by acquisition, and further consolidation within our core markets remains likely.”