Group profit is now expected to be 20% ahead of expectations due to continued pay and bonus cuts for staff and directors.

In a trading update the company said that the savings will help maintain the company’s finances and acquisition growth strategy.

Mattioli Woods has acquired several wealth managers, Financial Planners and pensions firms in recent years. In March it announced it would buy private client firm Hurley Partners in a £25m deal and in December it bought Glasgow-based Chartered Financial Planner firm The Turris Partnership Limited in a deal worth up to £1.6m. 

In its trading update today, Mattioli Woods said that because revenues were primarily fee-based it was less sensitive to investment market volatility. Client demand for advice was holding up although the Coronavirus crisis was now hitting income streams linked to the value of client assets. Client fees will not be increased to recognise the difficult economic conditions, it said.

The company said: “The group is in a strong financial position and following the completion of the acquisition of Hurley Partners (awaiting regulatory approval) it will continue to have significant cash balances and headroom on its regulatory capital requirements. 

“The board remains positive about the group's prospects given all the actions we have taken to reinforce its financial position, ensuring we remain a business that is sustainable and here for the long term, while retaining the flexibility to take advantage of new opportunities to grow our business as they arise.”

Pay cuts for directors announced after the Coronavirus outbreak began will continue.

Board directors have had their basic salary or fees cut by 50% and chief executive Ian Mattioli, whose salary was reduced to zero until 30 June will see his salary reduced by 60% from July onwards. Employees' basic salaries will be maintained but bonuses for all staff and directors will be cancelled. The moves will save £400,000 annually.

Chief executive Ian Mattioli said: “Even in these unprecedented times we are continuing to grow and develop the business, both organically and through continued acquisition. 

“We recognise that a significant number of our clients are being affected by these challenging economic conditions.  We have taken the decision not to alter any of our fee structures or implement any fee increases, which will continue to give our clients the benefit of reduced total expense ratios.”