Brooks Macdonald Group (BRK)

Sector:

Financials

Index:

FTSE AIM 100

2,010.00p
   
  • Change Today:
    -10.00p
  • 52 Week High: 2,160.00
  • 52 Week Low: 1,590.00
  • Currency: UK Pounds
  • Shares Issued: 16.47m
  • Volume: 12,516
  • Market Cap: £331.10m
  • RiskGrade: 164

Brooks Macdonald hikes dividend despite lower revenue

By Josh White

Date: Thursday 02 Mar 2023

LONDON (ShareCast) - (Sharecast News) - Brooks Macdonald Group reported a solid first-half financial performance on Thursday, despite volatile macroeconomic conditions.
The AIM-traded company said total funds under management (FUM) reached £16.2bn in the six months ended 31 December, up 3.6% over the half-year, with continuing positive net flows totalling £347m.

Annualised net flows of 4.4% were recorded for the period, compared to 4.0% for the same period last year.

Brooks Macdonald Investment Solutions (BMIS) and Platform Managed Portfolio Service (PMPS) were the drivers of the company's core UK discretionary business, experiencing strong growth, with combined annualised net flows of 52.6%.

That was partly offset by net outflows in the Bespoke Portfolio Service (BPS), due to weaker investor sentiment and extended lead times.

Revenue declined 4.8% to £58.9m, which the board said was driven by the impact of volatile markets on average funds under management, lower transaction-related revenues, and the repricing of the Cornelian Risk Managed Fund (RMF) range.

However, that was partly offset by continuing positive net flows and higher interest income.

The group's underlying profit before tax was in line with its prior guidance at £14.5m, compared to £17.6m in the same period a year earlier.

Its underlying profit margin was 24.6%, continuing its commitment to top quartile underlying profit margin.

Statutory profit after tax came in at £8.2m, versus £10.2m in the first half of the 2022 financial year, and underlying diluted earnings per share were 72.5p, down from 85.4p year-on-year.

Despite the volatile macroeconomic backdrop, the board raised the interim dividend by 7.7% to 28p, which it put down to the company's strong capital position, and its continuing confidence in the firm's prospects.

The outlook for the year remained in line with prior guidance, with full year net flows expected to be between 5% and 6%, primarily driven by Platform MPS and BMIS.

"I am encouraged by our underlying profit margin for the half year remaining robust at close to 25%, a reflection of continued cost discipline offsetting the impact of difficult markets on our funds under management and hence our revenue," said chief executive officer Andrew Shepherd.

"Overall, our financial performance for the period was solid with positive net flows demonstrating continuing intermediary and client demand for our products and services.

"This performance enabled us to increase our interim dividend by 8%, delivering continued returns for our shareholders."

Shepherd said the company's purpose was "realising ambitions and securing futures", adding that it had stayed close to its clients and intermediaries when they needed it most.

"We are confident in our strategy, we are making good progress and I remain optimistic about our long-term prospects.

"Although the short-term macroeconomic outlook remains uncertain, we are well positioned to take advantage of the growth opportunities ahead."

At 1150 GMT, shares in Brooks Macdonald Group were up 1.49% at 2,040p.

Reporting by Josh White for 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 2,010.00p
Change Today -10.00p
% Change -0.50 %
52 Week High 2,160.00
52 Week Low 1,590.00
Volume 12,516
Shares Issued 16.47m
Market Cap £331.10m
RiskGrade 164

BRK Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
9.84% above the market average9.84% above the market average9.84% above the market average9.84% above the market average9.84% above the market average
65.77% below the sector average65.77% below the sector average65.77% below the sector average65.77% below the sector average65.77% below the sector average
Price Trend
11.94% below the market average11.94% below the market average11.94% below the market average11.94% below the market average11.94% below the market average
12.07% below the sector average12.07% below the sector average12.07% below the sector average12.07% below the sector average12.07% below the sector average
Income
55.78% above the market average55.78% above the market average55.78% above the market average55.78% above the market average55.78% above the market average
29.23% below the sector average29.23% below the sector average29.23% below the sector average29.23% below the sector average29.23% below the sector average
Growth
68.33% below the market average68.33% below the market average68.33% below the market average68.33% below the market average68.33% below the market average
36.54% below the sector average36.54% below the sector average36.54% below the sector average36.54% below the sector average36.54% 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 12-Jul-2024

Time Volume / Share Price
16:35 4 @ 2,010.00p
16:35 2 @ 2,010.00p
16:35 2 @ 2,010.00p
16:23 18 @ 2,010.00p
14:16 2 @ 2,027.20p

BRK Key Personnel

Chair Maarten Slendebroek

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