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Mattioli Woods profits rise 14% ahead of UK Reit launch

Mattioli Woods has reported a 14 per cent rise in pre-tax profits in the second half of its financial year, from £2.52m to £2.86m, with the firm set to launch a UK Reit in the spring.

The firm’s interim results, published this morning, compare figures from the six months to May 2013 with the six months to November 2013.

Mattioli’s pensions and consultancy arm saw an increase in revenues of 23.9 per cent during the period, from £4.93m to £6.11m, with the number of Sipps and SSASs administered rising 14.4 per cent, from 5,066 to 5,794.

Total revenue across the business was up 19.4 per cent, from £11.26m to £13.44m, while the firm has also seen fee income rise from £3.44m to £4.48m.

As a result the interim dividend has increased 33 per cent, from 2.33p to 3.10p.

However, Mattioli says its property investment business was hit by an FCA clampdown on unregulated collective investment schemes. During the six months to 30 November 2013 the firm invested £2.6m through property syndicates, compared with £11m in the six months to May 2013.

In response, the firm has announced its intention to launch a UK-based real estate investment trust. It expects the Reit to acquire an initial seed portfolio of around £100m from existing clients’ property syndicates and is aiming to raise a further £50m to invest in UK commercial property.

Mattioli Woods executive chairman Bob Woods says: “It is over a year since the Financial Conduct Authority introduced the Retail Distribution Review, heralding a period of unprecedented change in our key markets.  We remain committed to the creation of a new style 21st century financial services business, the essence of which is combining consultancy with the provision of our own bespoke products and services. 

“We plan to incorporate a closed-ended property investment company, which is expected to become a real estate investment trust, to launch an initial public offering on the main market of London Stock Exchange plc in the spring.  The planned launch of the Reit is an exciting opportunity to drive dynamic growth in our property business.”

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