Mattioli Woods PLC (LON:MTW) cut its final dividend after reporting improved profits for the past year and with recent trading in-line with management expectations.
The advice-led wealth management business declared a final dividend of 12.7p, down 7% compared to this time last year, meaning the full-year figure of 20p was unchanged on last year.
"In light of the uncertain trading conditions, the board believes it is prudent to protect the group's financial position and balance the interests of all stakeholders,” the company said.
As a result, the final dividend is lower “than might have been proposed in more normal circumstances”, though directors said they “intend to release interim bonus payments in respect of the current financial year over the next few months”.
“The board also recognises the importance of dividends to shareholders and intends to return to growing the dividend, while maintaining an appropriate level of dividend cover, when it is an appropriate time to do so.”
Revenue was reported of £58.4mln for the year to May 31, 2020, up 1.6% year on year but down 0.5% excluding acquisitions.
Adjusted profit before tax jumped 34% to £15.8mln, which was short of forecasts of £16.5mln from house broker Shore Capital because of an increase to share-based payments and some additional discretionary bonuses.
Shares in the company were down 1% to 695.51p on Wednesday morning.