Mattioli Woods has reduced the number of adviser consultants on its books from 130 to 120 as total headcount fell from 622 employees to 604, and revenue came in below forecast over the second half.
The company said that the lower employee number was due to ‘the retirement of several vendors of acquired businesses on completion of their earn-outs’, the launch of a long-term training academy, and the consolidation of an office into its headquarters as a lease expired.
The fall came in the six months to end November, as the business said that a combination of ongoing investment and targeted client fee cuts reduced revenue growth to 2.8%, from £28.4 million to £29.2 million, much lower than the 16% increase over the prior period.
At the market open shares in Mattioli were 1.02% lower at 730p.
Despite higher compliance and IT costs, overall expenses remained flat at £5.4 million however, as the company’s move to a new Leicester city centre HQ came in ahead of schedule and under budget.
Profit before tax was 3.7% higher at £5.6 million. The company lifted its interim dividend 15.1% to 6.3p.
Chief executive Ian Mattioli MBE (pictured) said: ‘I am pleased to report another period of sustainable profit growth, achieved against the backdrop of a complex market.
‘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. 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.’
The period excludes the December market tumble which has hit many rivals, with assets under management climbing marginally over the period, from £8.73 billion to £8.79 billion on a £140 million inflow.
Discretionary assets slipped however, falling 0.7% from £1.34 billion to £1.33 billion.