Wealth manager and SIPP firm Mattioli Woods has made 18 staff redundant from a workforce of 622 as it pushes through “operational efficiencies” following  a period of rapid expansion and acquisition.

In its interim six month results out today the firm said it was “securing economies of scale and operational efficiencies” by trimming back staff numbers in some areas, particularly after the integration of acquired businesses and clients. 

Because the lease on the group's office in Hampton-in-Arden is expiring in June and the proximity of this location to its new HQ in Leicester, it has also relocated its MC Trustees business to its new Leicester office “resulting in some redundancies and the group's total headcount falling to 604.” 

The company has also reviewed its approach to using consultants and cut back the number by 10 to 120.

Despite the redundancies the group reported modest growth with revenue up 2.8% to £29.2m and adjusted pre-tax profit up 8.3% to £6.5m. Adjusted EBITDA was up 18.5% to £7.7m.

Total client assets were up 0.7% to £8.79bn and the profit outlook for year is in line with management's expectations, the firm says.

Chief executive Ian Mattioli said: “I am pleased to report another period of sustainable profit growth, achieved against the backdrop of a complex market. 

“As highlighted in our January trading update, revenue growth in the period was slightly lower than expected due to a combination of the group reducing clients’ costs and general market conditions.  The financial impact of this was more than offset by the realisation of operational efficiencies and other administrative cost savings, resulting in Adjusted EPS increasing 9.2% to 20.1p. 

“We believe the benefits of operating an integrated business allows us to secure great client outcomes while reducing clients' costs and delivering strong, sustainable shareholder returns.”

Mr Woods said the firm’s Broughtons Chartered Financial Planning business, acquired recently, has “integrated well” and contributed positively to trading results.  The group also generated an increased share of profit from its fund management arm Amati which now has £337m in funds under management.”

Mr Woods admitted there was uncertainty around the impact of Brexit but believes the group is well placed to weather any storm. A focus on fees rather than charges linked to a percentage of assets would also help with resilience, he said.

He added: “Unlike many wealth managers, the majority of the group’s revenues are fee-based, rather than being linked to the value of assets under management, administration or advice, giving our business a revenue profile that is less sensitive to market performance. “