Mattioli Woods profits dip as group awaits DFM approval

Wealth manager Mattioli Woods saw a 17% dip in profits in the six months ending 30 November as the group was hit by a slowdown in investment activity.

The group, whose main business line is pensions consultancy, said adjusted profit before tax was £2m in the period, down from £2.4m in the first half of last year.

This is despite a 17% increase in revenue to £8.7m and a 29% rise in assets under advice, which rose to £2.86bn.

"We had anticipated a contraction in margin as we invest in the business to secure continued growth, which was coupled with a slowdown in investment activity in the first half," executive chairman Bob Woods said.

He added the group expects increased activity in the second half of the financial year.

In August 2011, Mattioli Woods acquired TCF Global Independent Financial Services and its subsidiary, employee benefits and wealth management firm Kudos Independent Financial Services, for £8.7m.

The new company was "bedding-in well", Woods said.

Meanwhile, Mattioli Woods is awaiting permission from the FSA to launch a discretionary portfolio management service, which it said "will provide a lower cost and more efficient investment process for certain clients, while enhancing our recurring revenue streams".