27 August 2021

Mattioli Woods plc

("Mattioli Woods", "the Company" or "the Group")

Acquisition of Richings Financial Management Ltd

Mattioli Woods plc (AIM: MTW.L), the specialist wealth and asset management business, is pleased to announce the acquisition of 100% of the share capital of Richings Financial Management Ltd ("Richings") from its shareholders ("the Sellers") for an initial consideration of £0.9 million and potential further consideration of up to £0.9 million dependent on the attainment of specified performance targets in the two years after completion.

Founded in 1991, Richings is an established financial planning and wealth management business, working with over 270 private client families with approximately £70 million of assets under advice.  Richings is based in Iver and employs an experienced team of four staff, all of whom will remain with Mattioli Woods following completion.  

In the year ended 30 April 2021, Richings generated revenues of £0.66 million with a profit before taxation of £0.34 million.  At 30 April 2021 Richings' gross assets were £0.35 million and net assets were £0.26 million.  The acquisition is expected to be earnings enhancing in the first full year of ownership.

The total consideration comprises:

·     An initial consideration of £0.9 million cash on a cash-free, debt-free basis (subject to adjustment for the value of net assets acquired); and

·     Contingent consideration of up to £0.9 million payable in cash on the first and second anniversaries of completion, subject to certain profit targets being met. 

Payment of the initial cash consideration, deal costs and estimated net asset completion adjustment has resulted in a net cash outflow at completion of £0.9 million (net of estimated cash received on acquisition). 

Commenting on the acquisition, Ian Mattioli, Chief Executive Officer of Mattioli Woods, said:

"Not only is this transaction a great addition because Clive shares the same philosophy as us, putting client's best interests at the forefront of his advice, but it further expands our operations in the South East following our other recent acquisitions.  We believe the broader range of products and services offered by Mattioli Woods, including our enhanced product offering to clients from the recent acquisition of investment manager Maven Capital Partners, can help build on the great outcomes Richings' clients already achieve.  We look forward to working with Clive and his experienced team now that they have joined the Mattioli Woods group."

Clive Ridge, Director of Richings, added:

"The increasing regulatory burden and resources required to successfully run an independent financial advisory business led us to explore the options available to ensure the long-term continuity of the quality advisory service we offer our clients. 

"I believe that with Mattioli Woods' more comprehensive infrastructure and larger support team behind us, Richings' clients and employees will benefit from the considerable additional resources and support now available as part of the Mattioli Woods group, enabling our team to enhance and expand the personal service our clients expect from us, while continuing to put them at the forefront of our advice.  We are very much looking forward to this exciting new phase."

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This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018. 

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