Mattioli Woods, the SIPP and wealth management firm, has received FCA approval for its £25m takeover of private client firm Hurley Partners.

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. 

Mattioli Woods has paid £10.7m in cash for Hurley plus 842,866 in new ordinary shares in Mattioli Woods which have a current value of £5.9m.  An additional £8m is payable in cash in the two years following completion, dependent on Hurley meeting and outperforming earnings targets.  Estimated total assets being acquired include £2.5m of cash. 

In June Mattioli Woods forecast that 2020 revenues would match 2019 and a round of cost cutting should help maintain profits. Group profit is now expected to be 20% ahead of expectations due to continued pay and bonus cuts for staff and directors.

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.