17th Sep 2020 11:47
(Alliance News) - Brooks Macdonald Group PLC on Wednesday upped its dividend payout after posting a strong earnings performance for financial 2020 and said that the fundamentals of the business remains strong despite ongoing uncertainty.
The investment manager added that overall investment performance was strong for the year that ended June 30 at positive 1.0%, well ahead of the MSCI PIMFA Private Investor Balanced index which declined by 3.5% over the same period.
Brooks Macdonald ended financial 2020 with funds under management of GBP13.69 billion, up 4.1% from GBP13.15 billion a year ago. The rise was driven by GBP1.2 billion addition to FuM from the acquisition of Cornelian Asset Managers and GBP100 million in positive investment performance which was partially offset by GBP800 million of net fund outflows.
Revenue for financial 2020 grew 2.7% to GBP108.6 million from GBP105.7 million, driven by higher average FuM levels and the contribution from Cornelian. Pretax profit surged 27% to GBP10.0 million from GBP7.9 million.
The company made two acquisitions in financial 2020 - Cornelian Asset in November and the Channel Islands wealth management and funds business of Lloyds Banking Group PLC in June.
Brooks Macdonald declared a final dividend of 32.0 pence per share, giving a total payout of 53.0p, up 3.9% year-on-year.
Chief Executive Officer Caroline Connellan said: "The short-term outlook is uncertain, driven by both the progress of the pandemic and events surrounding Brexit. Nonetheless, the fundamental opportunity for Brooks Macdonald remains strong, we are uniquely positioned in the market and confident about what the future holds."
Shares in Brooks Macdonald were down 1.3% at 1,752.30 pence each in London on Thursday morning.
By Tapan Panchal; [email protected]
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