Mattioli Woods plc

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

AGM Statement and resolution update

Mattioli Woods (AIM: MTW.L), the specialist wealth and asset management business, will hold its Annual General Meeting ("AGM") at 10.00 a.m. today, at which the Group's Chairman, Joanne Lake, will make the following statement:

"We remain dedicated to our purpose and to maintaining our culture of putting our clients first, demonstrating resilience despite the pandemic and operating our business in a sustainable and responsible manner throughout. In September, we were pleased to report revenue growth for the year ended 31 May 2021 despite the continued economic uncertainties that persisted throughout the period. 

"We continue to operate in an agile manner, adapting our approach, service offering and the way in which we look after both our new and existing clients.  Market stability and investor confidence are showing signs of improving, despite the wider economic uncertainty, with net inflows into the Group's investment and asset management services ahead of the equivalent period last year. In addition, the number of new clients on-boarded in the first four months of this new financial year exceeded the prior year, reflecting successes from existing client referrals and business initiatives including virtual seminars during the pandemic, resulting in an increasing pipeline of new business enquiries similarly outperforming the prior year. This combined with underlying growth in our core pensions consultancy and administration and investment management segments has delivered organic growth in excess of 10% in the first four months of the year which is pleasing given the volatile markets that we have experienced.

"We have a track record of integrating acquired businesses into the Group, and are pleased by the progress that has been made with each of the acquisitions completed in or immediately after the year end 31 May 2021. This combined with financial performance of the acquired businesses in line with expectations further supports the strategic and financial rationale that we will continue to build upon.

"We are committed to growing our dividend in a responsible manner, while maintaining an appropriate level of dividend cover.  Accordingly, the Board will propose a final dividend of 13.5p per share (2020: 12.7p) at today's meeting, which makes a proposed total dividend for the year ended 31 May 2021 of 21.0p (2020: 20.0p). We recognise and appreciate the huge effort made by our people over this period and their contribution to delivering these results.  In line with our desire to balance the interests of all stakeholders, we have recently paid year-end bonuses in respect of the financial year ended 31 May 2021 to all staff having taken the cautious decision not to pay year-end bonuses for the prior period. 

"As previously announced, after nine years as an Independent Non-Executive Director, including five as Chairman, I will stand down from the Board and am in the process of handing over to David Kiddie who, if successfully re-elected, will succeed me as Chairman. This change will be effective from the conclusion of the handover process and receipt of regulatory approval, which is currently expected within 12 weeks of the conclusion of the AGM. This last year has been a particularly significant period in the Group's development, as we have continued to grow our client base organically and have delivered strategically and financially compelling acquisitions on a major scale. We have also strengthened and expanded our Board, bringing together an experienced team with the expertise to lead the Group into the next phase of its development.

"Our personalised approach, transparent fee structure and desire to build long-term relationships with our multi-generational client base leave us well placed for the future. Savings and investments are becoming more complicated and regulatory requirements continue to increase.  Clients need long-term advice and strategies more than ever before.  We will continue to seek to understand our clients' needs and provide quality solutions, maintaining our focus on client service and continuing to adapt our business model to the changing market. Consequently, we remain positive about the Group's growth prospects given our resilient operating model. 

"The further easing of lockdown restrictions and continued roll out of the COVID-19 vaccination programme are supporting improved investor confidence and we expect the increased client inflows and new business enquiries seen in both the prior and current financial year to continue. Current trading is in line with management's expectations and we remain confident that we are well positioned to secure future growth, both organically and through further strategic acquisitions, which will allow us to continue to deliver sustainable shareholder returns".  

The Company is withdrawing Resolution 16 (resolution relating to the maximum ratio to be applied between fixed and variable remuneration) from consideration at today's AGM. This resolution had been proposed to align the Company's remuneration policy with anticipated future changes to remuneration regulations as a result of MIFIDPRU.  However, following advice received by the Company after the publication by the FCA in October of the final rules for the Investment Firms Prudential Regime at the conclusion of the latest FCA consultation period, the requirement for the Company under the upcoming regulations will be to maintain internal ratio or ratios, between variable and fixed remuneration which the Company may determine and which may differ from the limits which had been proposed in Resolution 16.  The Company therefore withdraws Resolution 16 from consideration at the AGM.  The Company will of course continue to act ethically and responsibly in relation to remuneration across the Group and will maintain appropriate internal ratios as required by the new regulations. The Company will in addition propose for consideration and approval by shareholders any resolutions which may in the future be required to ensure the Company's continued compliance with applicable remuneration requirements.

The withdrawal of Resolution 16 does not otherwise affect the validity of the Notice of AGM, the proxy form for use at the AGM or the proxy votes already submitted in relation to the other resolutions to be proposed at the AGM. The numbering of all other resolutions proposed at the AGM will remain unchanged.

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