11th Sep 2013 10:00
LONDON (Alliance News) - AIM-listed wealth manager Brooks Macdonald Group PLC Wednesday said its full-year pretax profit rose after revenues increased ahead of growing administrative costs.
Brooks Macdonald said it made a GBP10.4 million pretax profit for the year ended June 30, compared with GBP8.5 million for the corresponding period the year prior. The profit came in spite of costs of over GBP1 million associated with the acquisitions of JPAM Limited and Spearpoint, the Channel Islands fund management business now renamed Brooks Macdonald International, and was driven by a growth in the number of professional intermediaries who bring business to the group.
The higher administrative costs, which increased to GBP52.7 million from GBP44.9 million, came about as the wealth manager reported an increase in staff numbers across the group, to 376 to 282.
"For the coming year our outlook for investment returns remains cautiously optimistic. We believe that there will be a more stable background for regulatory change, that there will continue to be margin pressures on non-bespoke services and that there will be numerous growth opportunities for the Group. Despite the short-term margin pressures highlighted, we are a progressive business and therefore will continue to invest for the future," Chris Macdonald, chief executive, said in a statement.
Funds under management increased to GBP5.11 billion, up from GBP3.52 billion for the corresponding period last year, driven by the acquisitions mentioned above and performance of constituent funds, such as Brooks Macdonald Funds, which grew its funds under management to GBP390 million, up from GBP148 million this time last year.
Brooks Macdonald said it has attracted more institutional investors, for example government institutions.
Brooks Macdonald increased its final dividend to 16.0 pence, up from last year's 12.5 pence. Its full dividend for the year is therefore 22.5 pence, up from last year's 18.5 pence.
The firm's shares were Wednesday quoted at 1,410.00 pence each, up 41.00 pence, or 3.0%.
By Samuel Agini; [email protected]; @samuelagini
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