12th Sep 2008 07:00
BROOKS MACDONALD GROUP PLC
Final results for the year ended 30 June 2008
Brooks Macdonald Group plc (the "Group"), an integrated private client discretionary asset management and financial advisory group, today announces its results for the year ended 30 June 2008.
Financial and business highlights
- Profit before tax of GBP2.03 million, an increase of 27% (2007: GBP1.60 million)
- Turnover up 34% to GBP16.8 million (2007: GBP12.5 million)
- Discretionary funds under management up 29% to GBP1.18 billion (2007: GBP915 million)
- Final dividend of 3.5p per share (2007: 2.25p)
Chris Macdonald, CEO said:
"This has been a record year for the Group with a number of landmarks being achieved. Profit before tax has exceeded GBP2 million for the first time, funds under management reached GBP1billion in December 2007 and turnover exceeded GBP16 million.
The Group has had another successful year, not just in terms of financial results and performance but also in the progress made in all aspects of the business. The infrastructure, people and service we provide to clients enable the Group to continue its organic growth and, in spite of poor market and economic conditions, we can look forward with confidence."
Enquiries
|
Brooks Macdonald Group plc |
www.brooksmacdonald.com |
|
Chris Macdonald, Chief Executive |
+44 (0)20 7499 6424 |
|
Simon Jackson, Finance Director |
+44 (0) 20 7408 5541 |
|
Collins Stewart Europe Limited |
|
|
Nick Ellis |
+44 (0)20 7523 8350 |
Chairman's Statement
I am pleased to report a strong set of results for the year ended 30 June 2008. Against a backdrop of turbulent markets the Group has had another year of significant progress.
Pre-tax profit was £2.03 million compared to £1.60 million, an increase of 27%. Turnover has increased from £12.53 million to £16.78 million in 2008, a rise of 34%, and discretionary funds under management rose from £915 million to £ 1,181 million, an increase of 29%.
The Board has decided to recommend a dividend of 3.5p per share compared with 2.25p for the previous year which will be payable on 23 October 2008 to those shareholders on the register at the close of business on 26 September 2008. The ex-divided date is 24 September 2008. The dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements.
Brooks Macdonald Asset Management and Brooks Macdonald Services
Investment markets have been and remain difficult and it is therefore particularly pleasing that funds under management have grown significantly during the year. Whereas the FTSE 100 declined 14.8% and the more relevant APCIMS Balanced Index fell by 10.2%, our discretionary funds under management, through a combination of strong organic growth and investment performance, rose by 29% from GBP915 million to GBP1.181 billion. This is a reflection of a robust investment management process, strong distribution and the high service levels delivered by our teams in London, Winchester and Manchester. Noteworthy have been our new business efforts with professional introducers and in the formation of strategic alliances.
The growth in our asset management business is supported by our services company, which provides considerable operational leverage for the Group.
Brooks Macdonald Financial Consulting
It was another good year for our financial consulting company which achieved growth in each of its employee benefits, mortgage, and financial planning teams.
Whilst market conditions and sentiment are at best uncertain there is still strong demand for quality independent fee based advice. By operating in three distinct but complementary marketplaces we continue to benefit from the wishes of our clients to have access, within one company, to advice on all the issues they may encounter throughout their financial life.
Outlook
We are hardly immune to market conditions but the strength of our business model gives us grounds for cautious optimism for our future performance: we have an excellent client bank, strong relationships with professional introducers and a first class team of investment and financial consulting professionals.
Christopher Knight
Chairman
Brooks Macdonald Group plc
Consolidated Income Statement
for the year ended 30 June 2008
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|
Note
|
2008
|
2007
|
||
|
|
|
|
GBP
|
|
GBP
|
|
Revenue
|
|
|
16,786,350
|
|
12,536,943
|
|
Administrative costs
|
|
|
(15,074,405)
|
|
(11,058,555)
|
|
|
|
|
|
|
|
|
Operating profit
|
|
|
1,711,945
|
|
1,478,388
|
|
|
|
|
|
|
|
|
Finance income
|
|
|
315,530
|
|
121,944
|
|
|
|
|
|
|
|
|
Profit before taxation
|
|
|
2,027,475
|
|
1,600,332
|
|
|
|
|
|
|
|
|
Taxation
|
|
|
(808,384)
|
|
(478,341)
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
1,219,091
|
|
1,121,991
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
2
|
|
12.41p
|
|
11.44p
|
|
Diluted
|
|
|
12.08p
|
|
11.15p
|
Brooks Macdonald Group plc
Consolidated Balance Sheet as at 30 June 2008
|
Note |
2008 |
2007 |
|||
|
GBP |
GBP |
||||
|
Assets |
|||||
|
Property, plant and equipment |
876,941 |
465,769 |
|||
|
Intangible assets |
605,271 |
365,438 |
|||
|
Total non-current assets |
1,482,212 |
831,207 |
|||
|
Current assets |
|||||
|
Trade and other receivables |
2,840,270 |
2,740,493 |
|||
|
Deferred taxation |
20,980 |
162,093 |
|||
|
Financial assets |
- |
37 |
|||
|
Cash and cash equivalents |
5,923,712 |
4,956,120 |
|||
|
Total current assets |
8,784,962 |
7,858,743 |
|||
|
Total assets |
10,267,174 |
8,689,950 |
|||
|
Current liabilities |
|||||
|
Trade and other payables |
(4,037,849) |
(3,583,333) |
|||
|
Current tax liabilities |
(310,482) |
(506,567) |
|||
|
Total current liabilities |
(4,348,331) |
(4,089,900) |
|||
|
Non-current liabilities |
|||||
|
Non-current provisions |
(53,607) |
(204,990) |
|||
|
Other non-current liabilities |
(20,313) |
(20,313) |
|||
|
Total non-current liabilities |
(73,920) |
(225,303) |
|||
|
Net assets |
5,844,923 |
4,374,747 |
|||
|
Financed by: |
|||||
|
Equity |
|||||
|
Share capital |
99,850 |
98,131 |
|||
|
Share premium account |
1,571,031 |
1,365,910 |
|||
|
Other reserves |
813,903 |
548,863 |
|||
|
Retained earnings |
3,360,139 |
2,361,843 |
|||
|
Total equity |
5,844,923 |
4,374,747 |
|||
Brooks Macdonald Group plc
Consolidated Cash Flow Statement
for the year ended 30 June 2008
|
Note |
2008 |
2007 |
|||
|
|
GBP |
GBP |
|||
|
Cash inflow from operating activities |
|||||
|
Cash generated from operations |
2,642,457 |
2,133,419 |
|||
|
Taxation paid |
(836,285) |
(258,246) |
|||
|
Net cash from operating activities |
|
1,806,172 |
1,875,173 |
||
|
Cash flow from investing activities |
|||||
|
Purchase of property, plant and equipment |
(605,519) |
(426,242) |
|||
|
Purchase of intangible assets |
(534,636) |
- |
|||
|
Interest received |
315,530 |
121,944 |
|||
|
Net cash used in investing activities |
(824,625) |
(304,298) |
|||
|
Cash flows from financing activities |
|||||
|
Proceeds of issue of shares |
206,840 |
- |
|||
|
Dividend paid to shareholders |
(220,795) |
(147,197) |
|||
|
Net cash used in financial activities |
(13,955) |
(147,197) |
|||
|
Net increase in cash and cash equivalents |
967,592 |
1,423,678 |
|||
|
Cash and cash equivalents at start of year |
4,956,120 |
3,532,442 |
|||
|
Cash and cash equivalents at end of year |
5,923,712 |
4,956,120 |
|||
Brooks Macdonald Group plc
Note 1 Basis of accounting and preparation
This is the first year for which the group has presented its financial statements under IFRS as adopted by the European Union and with those parts of the Companies Act 1985 applicable to
companies reporting under IFRS. The last statements under UK Generally Accepted Accounting Practice (GAAP) were for the year ended 30 June 2007. The date of transition to International Financial Reporting and Accounting Standards was 1 July 2006 and all comparative information in these financial statements has been restated to reflect the Group's adoption of International Financial Reporting and Accounting Standard
The Group has adopted all new and revised standards and interpretations issued by the International Accounting Standards Board and the International Financial Reporting Interpretations Committee that are relevant to the Group's operations and effective for annual reporting periods beginning 1 July 2007.
Note 2 Earnings per share
Basic earnings per share are calculated by dividing the Group profits after tax of GBP1.219m by 9.82m, the weighted average number of ordinary shares in issue over the year ended 30 June 2008. The resultant earnings per share for the year are 12.41p.
Note 3 Statutory accounts
The financial information set out above does not constitute the Group's statutory information for the year ended 30 June 2008 but is derived from those accounts. Statutory accounts for the year will be delivered to the Registrar of Companies following the Company's annual general meeting. The auditors have reported on these accounts, their reports were unqualified and did not contain statements under the Companies Act 1985, s237 (2) or (3).
Related Shares:
Brooks Macdonald