2nd Mar 2023 18:04
(Alliance News) - Brooks Macdonald Group PLC reported on Thursday a fall in interim revenue and profit, although funds under management proved resilient, edging higher.
The AIM-listed wealth manager said revenue declined by 4.8% to GBP58.9 million in the six months to December 31 from GBP61.9 million in the previous year, driven by the impact of volatile markets on funds under management and lower transaction-related revenue. This was partly offset by continuing positive net flows and higher interest income.
Underlying pretax profit of GBP14.5 million was in line with prior guidance and compared to GBP17.6 million in the same period last year, with underlying profit margin at 24.6%, down from 28.4%.
Underlying diluted earnings per share were 72.5 pence compared to 85.4 pence in the same period last year and the interim dividend was raised by 7.7% to 28.0 pence from 26.0 pence, reflecting the results, the strong capital position and continuing confidence in the firm's prospects.
Brooks Macdonald maintained guidance with full year net flows expected to be 5% to 6%, primarily driven by Brooks Macdonald Investment Solutions and Platform Managed Portfolio Service.
Total funds under management edged higher to GBP16.23 billion at December 31, a 3.6% increase on the figure six months previously of GBP15.67 billion. Continuing positive net flows over the six months were reported totalling GBP347 million, up from GBP326 million a year before.
Chief Executive Andrew Shepherd said: "Although the short-term macroeconomic outlook remains uncertain, we are well positioned to take advantage of the growth opportunities ahead."
Shares in Brooks Macdonald closed up 1% at 2,031 pence each in London on Thursday.
By Jeremy Cutler, Alliance News reporter
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