17th Sep 2014 08:47
LONDON (Alliance News) - Brooks Macdonald Group PLC Wednesday reported an uptick in pretax profit in its last financial year as the wealth manager reported a rise in the funds it manages on the back of organic growth, market movements, and its acquisition of DPZ Capital Ltd in April.
In a statement, the AIM-listed wealth management group said it made a GBP10.6 million pretax profit in the year ended June 30, compared with GBP10.4 million in the prior year. Revenue rose to GBP69.1 million from GBP63.2 million. Administrative expenses rose to GBP58.2 million from GBP52.7 million.
However, when adjusting for acquisition costs, finance costs of deferred consideration and the amortisation of client relationships, pretax profit fell to GBP13.3 million from GBP13.6 million.
Funds under management swelled by 28% to GBP6.55 billion, driven by acquisitions, performance and organic growth. Stripping out market growth and acquisitions, funds under management increased by 15%. Investment performance across the group accounted for 6.5% of the overall increase, or GBP330.0 million, over the year. The DPZ acquisition represented 7.0% or GBP360.0 million. Net new business represented 15% or GBP750.0 million.
Separately, advisory assets increased to more than GBP450.0 million from GBP348.0 million. Property assets under administration grew to GBP1.13 billion from GBP1.04 billion, and third party assets under administration grew to GBP200.0 million from GBP140.0 million.
Chief Executive Chris Macdonald said the last year was one in which the business continued to evolve, invest in the future and grow funds under management and administration.
"It's therefore particularly pleasing to report annual organic and investment growth excluding acquisitions of over GBP1.0 billion in our discretionary funds under management for the first time in our history. We have maintained profits and positioned the group for a return to profit growth despite increased costs due to the changes and investment," Macdonald said in a statement.
"Markets have been supportive, particularly in the first half of the calendar year, and our outlook for investment returns remains cautiously optimistic. We will continue to invest in systems development and remain optimistic for new business flows. New business has started the year well and the board remains confident for the future of the group," the CEO added.
Chairman Christopher Knight said the group expects to continue to invest in further development of its IT systems and its investment and wealth management process.
Brooks Macdonald increased its full-year dividend to 26.0 pence from 22.5p.
Shares were Wednesday quoted down 2.0% at 1,401.00p.
By Samuel Agini; [email protected]; @samuelagini
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