Despite recent stock market turmoil, pensions consultancy Mattioli Woods, one of our favourites from 2006, backed at 211p, delivered further good growth for the six months to November. On turnover up 22 per cent at £5.3 million, profits were increased 15.8 per cent to £1.83 million and earnings grew by 16 per cent to 7.3p, allowing for a lift in the interim dividend from 0.85p to 1p.

First-half highlights included healthy 8.6 per cent organic growth in the number of self-invested personal pension (SIPP) schemes acted for, reflecting better awareness of the group’s services, as well as the widening appeal of the flexibility, control and cost-effectiveness offered by SIPPs. Mattioli Woods, which now acts for more than 2,000 SIPP and small self-administered pension scheme (SSAS) clients in the UK, also grew funds under trusteeship from £760 million to £1.1 billion year on year.

On the acquisitions front, last July’s PCL purchase was successfully integrated, with chairman Bob Woods reporting strong demand for the group’s pension consultancy and investment advice from the acquired PCL client base. Alongside results, Mattioli Woods announced the acquisition of the JB Group for up to £2.59 million cash, in a move adding a further 235 SSASs and 55 SIPPs to the client portfolio and further consolidating the group’s position in a fragmented market.

While the credit crunch and turbulence in financial markets makes life more difficult for investment advisers generally, Woods insists that demand for the high-quality, fee-based pensions advice Mattioli Woods offers actually rises during uncertain times.
Moreover, for the year to May, forecasts suggest that the company can improve profits from £3.3 million to £3.5 million and earnings to 14.3p (2007: 13.8p), for a frothy forward rating of 20.3. However, we feel this is a price worth paying for a robust and growing player in the pensions space.

Mattioli Woods	AIM	£47.22m	274.00p	0.00p
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