20th Sep 2018 09:58
LONDON (Alliance News) - Brooks Macdonald Group PLC on Thursday appointed new non-executive director and said that it continues to invest in expansion of its team despite a decrease in profit in its recently ended financial year.
The wealth management group said its profit for the year to the end of June declined 22% to GBP6.2 million from GBP7.9 million reported a year earlier, despite revenue rising 14% to GBP101.6 million from GBP88.8 million.
Portfolio management fees & associated transactional income increased by 14% to GBP87.9 million and fund management fees grew 42% to GBP7.8 million due to higher average funds under management as Brooks Macdonald continued to build scale.
Advisory fees and financial services commission remained broadly flat at GBP5.7 million.
"After a strong year and in line with the industry, we're seeing some impact of macroeconomic uncertainty on investor sentiment as we move into the new financial year," said Chief Executive Caroline Connellan.
"However, the fundamental opportunity for our business model remains strong and we remain confident in our positioning and ability to build on our success to date," added Connellan.
Administrative costs were higher year-on-year art GBP91.7 million compared to GBP80.9 million. In addition to that, the first half of the year saw slower transactional volumes due to lower portfolio turnover rates with activity stabilising in the second half of the financial year.
Underlying costs also increased by 16% to GBP83.7 million, driven by the growth in the company's permanent staff. The number of employees saw an increase in the period to 470 people from 452 employed a year ago.
In a separate statement, Brooks Macdonald said it appointed John Linwood as a non-executive director, with immediate effect.
Linwood is chief technology officer at privately funded UK Earth observation company Earth-i. He was formerly the executive vice president & chief technology officer of Wood Mackenzie, chief technology officer for the BBC, and a senior vice president of International Engineering unit at Yahoo Inc.
"I am delighted to welcome John to the board. His background in technology will be of significant benefit to us as we address the challenges of the digital economy," said Chairman Chris Knight.
Shares in Brooks Macdonald were trading 0.3% lower on Thursday at 2,058.50 pence each.
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