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 hikes dividend even as profit slips

By Josh White

Date: Thursday 14 Sep 2023

LONDON (ShareCast) - (Sharecast News) - Brooks Macdonald reported funds under management of £16.8bn in its final results on Thursday, making for a 7.5% increase from the prior year's £15.7bn.
The AIM-traded company said every quarter in the year ended 30 June saw positive net flows, with the total annual percentage coming in at 5.2% for the group, up from 4.8% in 2022.

It said the third quarter demonstrated the most growth, peaking at 9.2%.

The group said its investment performance stood at 2.3% for the year, surpassing the 1.6% increase recorded by the MSCI PIMFA Private Investor Balanced Index.

Revenue rose 1.3% to £123.8m, credited to positive net flows, improved investment performance, added revenue from acquisitions, and increased interest income, even though product mix effects somewhat countered those gains.

Despite challenging market conditions and mounting cost pressures, the group reported an underlying profit of £30.3m, reflecting a healthy profit margin of 24.5%.

That was slightly reduced from the £34.5m and 28.2% margin seen in 2022 but remained in line with the group's commitment to achieving top-quartile margins.

The company said it remained in a strong capital position, boasting a substantial balance sheet and providing more than the necessary buffer over the stipulated regulatory capital requirements.

Its board approved a 5.6% dividend increase, making it the 18th consecutive year since the shares began trading on AIM.

Looking ahead, Brooks Macdonald said it expected a continuation of positive net flows for 2024.

However, it foresaw potential challenges due to macroeconomic factors that could influence the first quarter and medium-term net flow objectives.

Fluctuations in the product mix were expected to keep impacting the average revenue yield.

The group said it anticipated deriving more benefits from its alliance with SS&C, especially as funds under management saw a medium-term increase.

Brooks Macdonald said it remained keen to review potential acquisitions aligned with its organic growth strategy.

In response to the FCA's newly introduced Consumer Duty Principle, Brooks Macdonald added that its processes and client-centric approach were suited to ensure the best outcomes for retail customers.

"I'm pleased to report a year of strategic progress and solid financial performance for Brooks Macdonald, highlighting once more the resilience of our strategy and our business model," said chief executive officer Andrew Shepherd.

"Despite market headwinds, we delivered 5.2% net flows and robust underlying profit margin.

"Although the economic climate continued to affect investor sentiment, we delivered consistent positive net flows, demonstrating the strength of both our proposition and our relationships with clients and advisers."

Shepherd said that looking ahead, the firm's focus remained on ensuring it was well-positioned to support clients, advisers, and its people.

"This underpins our ambition and the plans we have in place to take advantage of the long-term opportunity.

"Supported by a strong capital position, our proven strategy, and motivated people, we look to the future with confidence."

At 1139 BST, shares in Brooks Macdonald Group were down 2.85% at 1,875p.

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 2,000.00p
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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