14th Sep 2007 07:00
Brooks Macdonald Group PLC14 September 2007 BROOKS MACDONALD GROUP PLC FINAL RESULTS Year ended 30 June 2007 14 September 2007 Brooks Macdonald Group plc is an integrated private client discretionary assetmanagement and financial advisory group. Financial and business highlights • Profit before tax of GBP1.6 million, an increase of 95% • Turnover up from GBP8.2million to GBP12.0 million, a rise of 46% • Discretionary funds under management up from GBP638 million to GBP915 million,a rise of 43% • Dividend of 2.25p (1.5p) per share proposed payable on 22 October 2007 toshareholders on the register on 28 September 2007 The ex dividend date is 26September 2007. Chris Macdonald, CEO said: "The Group has had a successful year in both its Asset Management and FinancialConsulting businesses with turnover, profit and discretionary funds undermanagement all showing substantial rises. In spite of the recent market weakness, demand for our services in the high networth market place remains high. Recruitment over the last twelve months,investment in infrastructure, the opening of our Manchester office, thecontinued growth of the SIPP market and our high quality staff leaves the Groupin a strong position for the current year and beyond." Enquiries Chris Macdonald, Chief Executive [email protected] Simon Jackson, Finance [email protected] Chairman's Statement I am pleased to report our results for the year ended 30 June 2007, our secondfull year as an AiM company. The Group has had an excellent year, achieving asignificant increase in profits and in funds under management while continuingto build for the future. Turnover was £12.0million an increase of £3.8million or 46%; pre-tax profit was£1.60millon compared to £0.82millon in 2006, an increase of 95%; and funds undermanagement rose by 43% from £638million to £915million. The Board has decided to declare a dividend of 2.25p per share compared with1.5p for the previous year. The dividend is subject to approval by shareholdersat the Annual General Meeting on 16 October 2007 and has not been included as aliability in these financial statements. Asset Management The growth in funds under management endorses our continued objective ofproviding high levels of personal service with superior investment returns. Overthe period investment markets have been favourable - the FTSE100 rose by 13% andAPCIMs(1) Balanced (a more reflective index) rose by 9% - but our strong organicgrowth and investment returns have delivered a rise in funds under management of43%. Support and demand from professional intermediaries and the enormousopportunities in the Self Invested Personal Pension (SIPP) market have been twokey drivers to the growth of funds under management. Financial Consulting Turnover continues to rise in our financial planning company, Brooks MacdonaldFinancial Consulting (BMFC), with expansion across all five key areas (employeebenefits, tax planning, mortgage finance, pension provision and financialplanning). In BMFC and across the Group as a whole, we remain committed to theprovision of independent fee based advice to the high net worth individual. We have opened an office in Manchester, building on the success we have alreadyachieved in the north-west, and we have continued our recruitment process at alllevels. Our success is a reflection of the quality of our staff and their hard work,enthusiasm and dedication. It is their professionalism which gives us confidencein the future success of the Group. Christopher KnightChairman (1) Association of Private Client Investment Managers Consolidated Profit and Loss Account for the year ended 30 June 2007 Note 2007 2006 £ £ £ £Turnover 2,3 12,070,569 8,168,713 Administrative costs (11,058,555) (7,767,849) 1,012,014 400,864 Other operating income 4 153,624 155,460 Operating profit 4,5 1,165,638 556,324 Income from current asset - 7,191investmentsInterest receivable 6 434,694 257,509 434,694 264,700Profit on ordinary activities 1,600,332 821,024before taxation Tax on profit on ordinary 7 (437,246) (237,794)activities Profit on ordinary activities after 1,163,086 583,230taxation Dividends paid 8 (147,197) (98,110) Retained profit 21 1,015,889 485,120for the year Earnings per share Basic 24 11.85p 5.95pDiluted 24 10.99p 5.60p None of the Group's activities was acquired or discontinued during the above twofinancial years. The Group has no recognised gains or losses other than the profit for the abovetwo financial years. Consolidated Balance Sheet as at 30 June 2007 Note 2007 2006 £ £ £ £ Fixed assets Tangible assets 9 465,769 169,468 Current assets Debtors 11 3,171,988 1,960,876Investments 12 37 37Cash at bank and in hand 4,956,120 3,532,442 8,128,145 5,493,355Creditors, amounts falling due within 13 (4,089,900) (2,346,329)one year Net current assets 4,038,245 3,147,026 Total assets less current liabilities 4,504,014 3,316,494 Creditors, amounts falling due after 14 (20,313) (26,563)more than one year Provisions for liabilities 15 (204,990) (193,300) Net assets 4,278,711 3,096,631 Financed by: Capital and reserves Called up share capital 17 98,131 98,131Share premium 18 1,365,910 1,365,910Merger reserve 19 191,541 191,541Share option reserve 20 220,191 54,000Profit and loss account 21 2,402,938 1,387,049 Shareholders funds 22 4,278,711 3,096,631 Consolidated Cash Flow Statement for the year ended 30 June 2007 Note 2007 2006 £ £ £ £ Net cash inflow from operating 16 1,820,668 886,832activities Returns on investments and servicing of finance Interest received 6 434,694 257,509 Taxation (258,245) (146,553) Corporation tax paid Capital expenditure and financial investment (426,242) (111,905) Purchase of fixtures, fittings andequipmentSale of investments - 25,177 (426,242) (86,728) Equity dividends paid (147,197) (98,110) Financing - 3,265 Increase in share capital Net cash inflow in year 1,423,678 816,215 Net funds at beginning of year 3,532,442 2,716,227Net inflow 1,423,678 816,215 Net funds at end of year 23 4,956,120 3,532,442 Note 1 Basis of accounting and preparation The financial statements have been prepared under the historical cost conventionand in accordance with applicable accounting standards. The principalaccounting policies of the Group have remained unchanged from the previous yearand are set out below. The Group has applied the requirements of FRS 20 Share-based Payment. The Groupengages in equity settled share-based payment transactions in respect ofservices received from certain employees. The fair value of the options grantedis determined using option pricing models, which take into account the exerciseprice of the option, the current share price, the risk free interest rate, theexpected volatility of the Company's share price over the life of the option/award and other relevant factors. Note 2 Earnings per share Basic earnings per share are calculated by dividing the Group profits after taxof GBP 1.163,000 by 9.81m, the weighted average number of ordinary shares inissue over the year ended 30 June 2007. The resultant earnings per share for theyear are 11.85p. Note 3 Statutory accounts The financial information set out above does not constitute the Group'sstatutory information for the year ended 30 June 2007 but is derived from thoseaccounts. Statutory accounts for the year will be delivered to the Registrar ofCompanies following the Company's annual general meeting. The auditors havereported on these accounts, their reports were unqualified and did not containstatements under the Companies Act 1985, s237 (2) or (3). -------------------------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Brooks Macdonald