Mattioli Woods enjoys revenue boost as clients move away from cash

AIM-listed pension advisory firm Mattioli Woods has recovered from a drop in revenues due to clients' move away from cash in their Sipps and SSASs as they gain investment confidence.

Mattioli Woods executive chairman Bob Woods (pictured) said that clients' move away from cash had helped to boost investment-related revenues after difficult investment conditions in the first half of its trading year to the end of 31 May.

'Whilst revenues in the first half were affected by challenging investment conditions, we have seen a continuation of the trends I highlighted in our interim results statement issued on 26 January 2010, with clients increasingly willing to invest away from the safe haven of cash,' he said.  'As anticipated, this has since driven growth in our investment-related revenues and enhanced margins.'

Woods added that the company is looking for new acquisition targets and predicted further consolidation in the Sipp and SSAS sector.

The Leicester-based company has increased the number of pension schemes it manages, with 239 Sipps and 51 SSASs added to the business following the acquisition of Cooper Parry Wealth Strategies in April, and 100 Sipps resulting from a marketing drive.

Woods also welcomed the government move to scrap compulsory annuitisation, and welcomed its review of tax relief on pensions.

'This is encouraging and we look forward to participating in the HMRC consultation on this issue,' he said.