13th Sep 2006 07:01
Brooks Macdonald Group PLC13 September 2006 BROOKS MACDONALD GROUP PLC (THE "GROUP" OR THE "COMPANY") FINAL RESULTS FOR THE YEAR ENDED 30 JUNE 2006 Brooks Macdonald Group plc is an integrated private client discretionary assetmanagement and financial advisory group. Financial and business highlights • Pre tax profit of GBP 0.82 million • Pre tax profit up by 32 per cent • Turnover up from GBP 5.67 million in 2005 to GBP 8.17 million, a rise of 44 per cent • Discretionary funds under management up from GBP 411.9 million in 2005 to GBP 638.3 million a rise of 54 per cent • Proposed dividend increased to 1.5p per share payable on 20 October 2006 to shareholders on the register on 22 September 2006 Chris Macdonald, Chief Executive, said: "The Group has had a strong year of growth and my colleagues on the Board joinme in believing that Brooks Macdonald Group plc is well positioned to performstrongly for the 2007 financial year and beyond. Demand for our services remains strong not only in the high net worth privateclient market but also with our increasing number of professional connections.This has raised turnover and substantially increased our funds under managementover the past year. We will continue to invest in organic growth but in additioncontinue to look to expand by the recruitment of high quality, experiencedindividuals or teams." Enquiries Chris Macdonald Chief Executive Simon Jackson Finance [email protected] [email protected] BROOKS MACDONALD - CHAIRMAN'S STATEMENT Our first full year as a listed company has been one of considerable progress:turnover was GBP 8.17 million, an increase of 44 per cent; pre-tax profit wasGBP 0.82 million compared with GBP 0.62 million in 2005, an increase of 32 percent; and funds under management rose by 54 per cent from GBP 412 million to GBP638 million. The Board has decided to recommend a dividend of 1.5p per share, compared with1.0p per share for the previous financial year. ASSET MANAGEMENT Our objectives remain unchanged - to provide a high level of service andsuperior investment returns. We focus on the provision of bespoke investmentmanagement for private clients, charities, trusts and SIPPs. Over 60 per cent ofour new business over the last year has been represented by SIPPs, which remaina major source of business for Asset Management, our professional introducersand our own Financial Consulting company. Our growth strategy continues to concentrate on developing relationships withprofessional introducers to whose clients we offer fee based bespoke portfoliomanagement. It is a measure of our investment performance, service levels andmarketing success that our funds under management have grown by 54 per cent overthe last financial year whereas the FTSE100 has risen by 13.7 per cent and themore relevant APCIMS Balanced Index has grown by 10.4 per cent over the sameperiod. We have launched our Inheritance Tax service; a Property service; and ourManaged Portfolio service, a fund of funds for smaller portfolios. Our Portfolioof Absolute Return Strategies ('PARS') has provided stable market neutralreturns and continues to be popular with introducers and clients alike. In thecoming months, led by client demand, we intend to launch two offshore unittrusts. Four experienced fund managers have been successfully recruited this year to addto our existing first-class home-grown team. We shall continue to recruit whenwe can do so with confidence. We shall also continue our graduate traineeprogramme which will enable the Group to build capacity for the future. Brooks Macdonald Services was established earlier this year to provide our ownnominee, custody and dealing services. It was launched for new clients in April2006 and for existing clients in August 2006. This has involved considerableinfrastructure investment, which as well as improving our reporting (both weband paper) to clients and professional introducers, has given us the ability toexpand our back office capability without a commensurate increase in costs. FINANCIAL CONSULTING Brooks Macdonald Financial Consulting, our independent financial consulting arm,had a successful year with a significant increase in turnover. The resultsreflect its growing profile in the legal, accountancy and banking sectors, fromwhich it generates a substantial proportion of its new business, and increasedclient activity driven by changes in legislation in the fields of pension andinheritance tax planning. Financial Consulting continues to expand in its five key areas, namely employeebenefits, mortgage broking, tax planning, pension provision and financialplanning. Over the coming year we will continue to look to build the businessaround these areas by increased marketing, the continued recruitment ofspecialist advisors and utilising our increased profile in the professionalsector. Through Financial Consulting we remain committed to the provision of independentfee-based advice in the 'high net worth' marketplace. OUTLOOK We are confident that we can continue to build on what Brooks Macdonald Groupplc has achieved since listing. Our confidence is based on providing a quality,bespoke financial advisory and investment service to private clients, a servicefor which the Board believes there is increasing demand. Our confidence also reflects the commitment and enthusiasm of our staff, most ofwhom are stakeholders in the business and to whom we extend our thanks. Christopher KnightChairman Brooks Macdonald Group plc Consolidated Profit and Loss Account For the year ended 30 June 2006 2006 2005(restated) £ £ £ £ Turnover 8,168,713 5,667,469 Administrative costs (7,767,849) (5,325,892) 400,864 341,577 Other operating income 155,460 159,730 Operating profit 556,324 501,307 Income from current asset investments 7,191 83Interest receivable 257,509 120,337 264,700 120,420Profit on ordinary activities before tax 821,024 621,727 Tax on profit on ordinary activities (237,794) (160,645) Profit on ordinary activities after taxation 583,230 461,082 Dividends paid (98,110) (55,569) Retained profit for the year 485,120 405,513 Earnings per share Basic 5.95p 5.16pDiluted 5.60p 5.12p 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. Brooks Macdonald Group plc Consolidated Balance Sheet as at 30 June 2006 2006 2005(restated) £ £ £ £ Fixed assets Tangible assets 169,468 118,954 Current assets Debtors 1,960,876 1,143,784Investments 37 18,022Cash at bank and in hand 3,532,442 2,716,227 5,493,355 3,878,033Creditors, amounts falling due within one year (2,346,329) (1,261,898) Net current assets 3,147,026 2,616,135 Total assets less current liabilities 3,316,494 2,735,089 Creditors, amounts falling due after more than one year (26,563) (32,813) Provisions for liabilities (193,300) (148,030) Net assets 3,096,631 2,554,246 Financed by: Capital and reserves Called up share capital 98,131 98,110Share premium 1,365,910 1,362,666Merger reserve 191,541 191,541Share option reserve 54,000 -Profit and loss account 1,387,049 901,929 Shareholders funds 3,096,631 2,554,246 Brooks Macdonald Group plc Group Cash Flow Statement For the year ended 30 June 2006 2006 2005 £ £ £ £ Net cash inflow from operating activities 886,832 561,403 Returns on investments and servicing of finance Investment income received - 83Interest received 257,509 120,337 257,509 120,420Taxation (146,553) (85,461) Corporation tax paid Capital expenditure and financial investment Purchase of plant and equipment (111,905) (78,671)Purchase of investments - (6,001) Sale of investments 25,177 - (86,728) (84,672) Equity dividends paid (98,110) (61,358) Financing Increase in share capital 3,265 1,148,751 3,265 1,148,751 Net cash inflow in year 816,215 1,599,083 Net funds at beginning of year 2,716,227 1,117,144Net inflow 816,215 1,599,083 Net funds at end of year 3,532,442 2,716,227 Brooks Macdonald Group plc 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. On 28 January 2004, the company acquired 100 per cent of the issued ordinaryshare capital of Brooks Macdonald Financial Consulting Limited by means of ashare for share exchange as part of a group reorganisation. The Group has used merger accounting to account for the group reconstructioneffected by the acquisition by the company of the interest in Brooks MacdonaldFinancial Consulting Limited and its subsidiary company. The financialstatements are therefore presented as if Brooks Macdonald Financial ConsultingLimited and its subsidiary had been owned and controlled by the Group throughoutthe comparable year. Comparatives have been restated in respect of the presentation of dividends inaccordance with FRS 21 - Events after the balance sheet date. Note 2 Earnings per share Basic earnings per share are calculated by dividing the Group profits after taxof GBP 583,000 by 9.81m, the weighted average number of ordinary shares in issueover the year ended 30 June 2006. The resultant earnings per share for the yearare 5.95p Note 3 Statutory accounts The financial information set out above does not constitute the Group'sstatutory information for the year ended 30 June 2006 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