12th Sep 2019 10:19
(Alliance News) - Wealth manager Brooks Macdonald Group PLC on Thursday expressed confidence for the future following a solid year of improvement.
As of June 30, the end of Brooks Macdonald's financial year, funds under management stood at GBP13.2 billion, 6.8% higher than a year before.
Revenue was up 7.3% to GBP107.3 million, helping pretax profit to rise 22% to GBP8.2 million. On an underlying basis, excluding one-off items, pretax profit was 12% higher at GBP21.0 million.
The company is paying a final dividend of 32.0 pence per share, leading to a full year total payout of 51.0p, up 8.5% from the year before.
"I am delighted that we continue to make good progress on our strategy, with underlying profit margin increased to 19.6% reflecting our commitment to improve margins in the medium-term. The actions we announced in January have started to streamline the business, deliver efficiencies and make Brooks Macdonald easier to do business with," said Chief Executive Caroline Connellan.
"Looking ahead, we expect to deliver improved margins in the medium term by investing in our talent and capabilities to drive growth while continuing to exercise tight cost discipline."
Net flows of 5.4% in the company's UK investment management business are among the best in the sector, Connellan commented, with organic growth in net new business of 3.3%. A "robust" investment performance led to the 6.8% increase in funds under management to a record level.
"Looking ahead, the macroeconomic and political outlook is highly uncertain, even in the very short term. The UK's future relationship with the EU remains unclear and broader global risks, including the potential for trade wars, are also affecting client sentiment. While we remain cautious in our external outlook, it is also true the fundamental opportunity remains strong, driven by longer-term demographic and regulatory trends," said Chair Alan Carruthers.
"The group is well positioned with a strong balance sheet and supportive shareholders. Given the fundamental opportunity and the group's growing organisational capabilities, we expect to deliver both enhanced profit margins in the medium term and strong future growth."
Shares in the company were flat on Thursday morning in London at 1,960.00 pence each.
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Brooks Macdonald