Mattioli Woods in first half profit warning

Wealth management business and pensions consultancy Mattioli Woods has issued a first half profit warning in its latest trading update.

In its trading update for the six months to 30 November 2011, Bob Woods, executive chairman, said investment market conditions had remained “challenging”.

He said: “During this second quarter, our advice to clients has been to defer the placing of investments.

“While this has been beneficial for them, we now expect revenues and profits for the first half of this financial year to be below our initial expectations.”

Woods said the firm expected increased activity during the second half of its financial year as it advised on the re-positioning of clients’ retirement and investment strategies.

He added: “If this proves to be the case, I believe the result for the full year will be in line with management’s original expectations, continuing our record of revenue and profit growth.”

Woods said total assets under administration and advice had grown to £2.8 billion at 30 November, compared with £2.3 billion at 31 May, after it acquired employee benefits and wealth management business Kudos in August.

Ian Mattioli, chief executive of Mattioli Woods, added: “Over the last two months the impact of the eurozone crisis and the effect this is having on global sentiment has resulted in a controlled slowdown of investment activity.

“The world is holding its breath and our response has been to keep clients informed. We believe this has been the most appropriate response and in the best interests of our clients.

“However, this has led to a deferral of investment activity, which will result in our clients receiving proactive and personalised advice from us as this difficult situation unfolds.”

The firm also announced that Michael Kershaw, non-executive director, would be stepping down at the end of January.

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