16th Oct 2024 12:01
(Alliance News) - Brooks Macdonald Group PLC on Wednesday announced an increase in funds under management despite uncertainty revolving around the upcoming UK budget.
The London-based wealth manager said in the first financial quarter to September 30, it saw net outflows of GBP100 million, the same as in the fourth quarter of financial year 2024 that ended on June 30.
Despite this, citing "positive investment performance," funds under management as at September 30 rose 0.6% to GBP17.91 billion from GBP17.81 billion at June 30.
The company noted uncertainty about the UK budget that is due on October 30 leading to a reduction in gross inflows, which were down 6.0% quarter-on-quarter.
Chief Executive Officer Andrea Montague said: "Our business has shown resilience through improved client retention across all our UK propositions. The considerable speculation around the upcoming budget and rumoured changes to taxation and reliefs has clearly had an impact on investor confidence with lower gross inflows in the quarter."
Brooks Macdonald shares rose 1.1% to 1,759.00 pence each on late Wednesday morning in London.
On September 12, the company announced financial results for the year ended June 30, a new chief financial officer, and the sale of Brooks Macdonald International.
Pretax profit dived to GBP11.6 million in financial 2024 from GBP22.2 million a year prior.
Revenue rose 3.6% to GBP128.3 million from GBP123.8 million.
Notably, Brooks Macdonald noted a one-off goodwill impairment of GBP11.6 million for financial 2024. Further, administrative costs increased 5.6% to GBP107.9 million from GBP102.2 million.
The company proposed a final dividend of 49.0p per share, up from 47.0p. This brings the total payout to 78.0p, up 4.0% from 75.0p a year ago.
Further, Brooks Macdonald said it appointed Katherine Jones as new chief financial officer and as executive director from November 1. She most recently served as group finance director at London-based insurer and pensions provider Phoenix Group Holdings PLC.
Finally, the company said it entered into an agreement with Canaccord Genuity Wealth International Holdings Ltd to sell its subsidiary Brooks Macdonald Asset Management International Ltd and its subsidiaries for up to GBP50.9 million, including an initial consideration of GBP28 million.
Brooks Macdonald expects the sale to close in March.
CEO Montague said: "We are pleased to announce the sale of BMI to Canaccord as their presence and understanding of the local markets will provide a strong foundation for the future growth and development of the business."
David Esfandi, CEO of Canaccord Genuity Wealth Management, said: "This is a mutually beneficial transaction that will cement Canaccord's position as a fully-fledged integrated wealth manager. Both firms are well-established across the Crown Dependencies, and BMI will also add significant financial planning expertise in our international business. Canaccord has a robust and scalable operating platform with a proven track record of successfully integrating businesses, and we anticipate a smooth process for BMI in 2025."
By Tom Budszus, Alliance News slot editor
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