Brooks Macdonald FuM expands, revenue and profits narrow
By Josh White
Date: Thursday 27 Feb 2025
(Sharecast News) - Brooks Macdonald reported an improvement in first-half funds under management on Thursday, rising 0.7% to £15.7bn, although revenue and profits were down.
The AIM-traded firm recorded strong gross inflows of £1.1bn for the six months ended 31 December, driven by investment performance and inflows into its MPS Platform business.
However, elevated gross outflows of £1.4bn, particularly in bespoke portfolio services, led to net outflows of £0.3bn amid market uncertainty ahead of the UK Budget.
Revenue declined 2.6% to £51.9m due to lower interest income as market rates fell, but strong cost control reduced expenses by 2.9%.
That resulted in an underlying profit before tax of £15.5m, marginally down from £15.8m a year earlier.
Its underlying profit margin rose to 29.9%, while net assets increased 6.1% to £156.6m.
The firm declared an interim dividend of 30p per share, up 3.4% from last year, continuing its 19-year progressive dividend policy.
Brooks Macdonald said it had made significant progress in its 'Reignite Growth' strategy, completing the acquisitions of LIFT, CST Wealth and Lucas Fettes, expanding its financial planning business to around £6.4bn in assets under administration.
The firm also launched a £10m share buyback programme in January, with £831,850 worth of shares repurchased as of 26 February.
Looking ahead, the company said it expected full-year results to align with expectations, with positive net flows anticipated later in the year.
It said it was planning to maintain strict cost discipline while increasing capital expenditure to £10m, up from previous guidance of £5m, reflecting investment in office relocations and business growth.
Medium-term targets remained unchanged, with a goal of 5% annualised net inflows and cost growth of less than 5% per year.
"In the first half of 2025 we delivered solid financial results including net inflows to our MPS Platform business at an annualised rate of 13%," said chief executive officer Andrea Montague.
"Our strong discipline on costs led to an increase in our underlying profit margin and the board have announced an interim dividend of 30p, up 3.4% year on year, continuing our track record of 19 years of dividend increases.
"The completion of the sale of Brooks Macdonald Asset Management International sets us up firmly as a UK focused wealth manager."
Montague said the acquisition of three financial planning businesses had meanwhile broadened the company's client reach, increasing its UK client numbers by around 15%.
"I have set up a sector leading executive team and we now have a laser focus on our strategy to reignite growth, provide excellent service, a broad and diverse range of financial products and services with proven investment performance.
"This, combined with our disciplined cost management, strong profit margin and financial flexibility from a strong balance sheet means we are well placed to deliver on our ambitious growth plans and generate attractive returns for our clients, colleagues and shareholders."
At 1103 GMT, shares in Brooks Macdonald Group were down 1.39% at 1,415p.
Reporting by Josh White for Sharecast.com.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN