Brooks Macdonald Group (BRK)

Sector:

Financials

Index:

FTSE AIM 100

2,000.00p
   
  • Change Today:
    -20.00p
  • 52 Week High: 2,130.00
  • 52 Week Low: 1,590.00
  • Currency: UK Pounds
  • Shares Issued: 16.47m
  • Volume: 10,484
  • Market Cap: £329.45m
  • RiskGrade: 164

Brooks Macdonald reaches record underlying profit margin

By Josh White

Date: Thursday 15 Sep 2022

LONDON (ShareCast) - (Sharecast News) - Brooks Macdonald Group said in its full-year results on Thursday that group funds under management closed at £15.7bn, down 4.8% year-on-year, as positive net flows were offset by the impact of declining markets on asset values.
The AIM-traded firm said it recorded positive net flows throughout the year, making for five successive quarters, with net flows for the full year of 4.8%, representing a £1.1bn improvement over the prior year.

Flows were "particularly strong" in the fourth quarter to 30 June, with the annualised rate reaching 6.7% and 8.6% for group and UK investment management, respectively.

Group revenue totalled £122.2m for the year, up 3.4% on 2021, which the board said was driven by higher average funds under management and the full-year impact of the group's acquisition of the Lloyds Channel Islands business.

Underlying profit before tax was ahead 12.7% at 34.5m, while underlying basic earnings per share rose to 174.1p from 155.6p a year ago.

Its underlying profit margin improved by 2.3 points to 28.2%, in line with the group's commitment to deliver top-quartile margin over the medium term.

The company said its investment performance across its range of services was -9.6% for the year, driven by declining and volatile markets.

Its board hiked the total dividend by 12.7% to 71p per share, in line with the increase in underlying profit before tax.

Looking ahead, Brooks Macdonald said its long-term opportunity remained "strong", driven by demographic and policy trends as well as continuing adviser demand for outsourced investment management.

Its medium-term ambition for net flows was 8% to 10% per annum, with the group expecting that flows would remain positive despite ongoing short-term market uncertainty affecting client confidence and conversion times.

The board said underlying profitability for 2023 was set to be in line with current market expectations, adding that the company was "well-positioned to deliver on its ambitious growth strategy.

"This has been another strong year for Brooks Macdonald - we've delivered higher net flows, we've hit another record for underlying profit margin, and we've increased our full year dividend for the seventeenth consecutive year," said chief executive officer Andrew Shepherd.

"We have made good progress in driving our digital transformation forward, having now gone live with our remaining client- and adviser-facing processes on the SS&C platform.

"This will make Brooks Macdonald increasingly easy to do business with, delivering a best-in-class adviser experience and client service."

Shepherd said the company's clients and advisers were facing a "challenging" macroeconomic and market environment.

"Nonetheless, the fundamental long-term opportunity for Brooks Macdonald remains strong despite these challenges.

"We have momentum, we have an ambitious growth strategy and we have a strong team with the capabilities to take full advantage of the opportunities ahead."

At 1001 BST, shares in Brooks Macdonald Group were up 1.52% at 2,233.34p.

Reporting by Josh White at Sharecast.com.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

BRK Market Data

Currency UK Pounds
Share Price 2,000.00p
Change Today -20.00p
% Change -0.99 %
52 Week High 2,130.00
52 Week Low 1,590.00
Volume 10,484
Shares Issued 16.47m
Market Cap £329.45m
RiskGrade 164

BRK Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
6.51% above the market average6.51% above the market average6.51% above the market average6.51% above the market average6.51% above the market average
66.07% below the sector average66.07% below the sector average66.07% below the sector average66.07% below the sector average66.07% below the sector average
Price Trend
6.39% above the market average6.39% above the market average6.39% above the market average6.39% above the market average6.39% above the market average
5.17% above the sector average5.17% above the sector average5.17% above the sector average5.17% above the sector average5.17% above the sector average
Income
53.05% above the market average53.05% above the market average53.05% above the market average53.05% above the market average53.05% above the market average
26.47% below the sector average26.47% below the sector average26.47% below the sector average26.47% below the sector average26.47% below the sector average
Growth
67.83% below the market average67.83% below the market average67.83% below the market average67.83% below the market average67.83% below the market average
35.24% below the sector average35.24% below the sector average35.24% below the sector average35.24% below the sector average35.24% below the sector average

What The Brokers Say

Strong Buy 2
Buy 3
Neutral 1
Sell 1
Strong Sell 0
Total 7
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

BRK Dividends

  Latest Previous
  Interim Final
Ex-Div 14-Mar-24 21-Sep-23
Paid 16-Apr-24 03-Nov-23
Amount 29.00p 47.00p

Trades for 19-Jul-2024

Time Volume / Share Price
16:35 1,111 @ 2,000.00p
16:35 288 @ 2,000.00p
16:35 677 @ 2,000.00p
16:35 99 @ 2,000.00p
16:35 1 @ 2,000.00p

BRK Key Personnel

Chair Maarten Slendebroek

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