16th Mar 2006 14:11
Brooks Macdonald Group PLC16 March 2006 CHAIRMAN'S STATEMENT - INTERIM RESULTS BROOKS MACDONALD GROUP PLC I am pleased to report to shareholders an encouraging set of results for the sixmonths ended 31 December 2005. In all three key areas of the business -turnover,profits and funds under management we are ahead of budget. Profit beforetaxation was £187,000, lower than the corresponding period last year, reflectinga significant investment in new staff and the costs incurred in acquiring newbusiness which will not generate income until the second half of the year. Turnover of £3.4 million was an increase of 26% over the first half of lastyear, reflecting both stable investment markets and the significant increase infunds under management, which rose to £515 million compared with £412 million atthe end of the last financial year. This represents a rise of 25% over the sixmonth period and a rise of 41% over the £363 million funds under management atDecember 2004. This increase is due to both our fund manager recruitmentprogramme as well as our continued strong organic growth. New business remains buoyant not only in Self Invested Personal Pensions butalso in the provision of bespoke portfolio management. We have continued tofoster links with a number of professional introducers which is yielding resultsboth in the UK and now also in continental Europe. Increased activity in Financial Consulting reflects further demand for ourservices in the light of A Day pension legislation. This will continue to be anarea of specialisation well beyond April 2006. In addition, we will be lookingto expand our Group and Employee Benefits team over the coming months to takeadvantage of the increasing demand from companies to sub-contract their staffpension responsibilities. We continue to expand our specialist services which are available to clientseither as a specific product or as part of a larger portfolio. Our Propertyservice and our Portfolio of Absolute Return Strategies (PARS) were bothlaunched during the last financial year. We introduced our IHT / AiM portfolioservice in December and are planning to launch a Managed Portfolio service inApril 2006. In the second quarter of 2006 we hope to put in place our first OpenEnded Investment Vehicles. With the formation of Brooks Macdonald Services Limited we will be introducingour own in house nominee service. This will begin for new clients in April 2006and become fully operational during our next financial year. As well asproviding full custodian and dealing services this will further enhance ourasset management software and client reporting. We are optimistic that with continuing stability in the investment markets weshall see further significant increases in funds under management. Our businessmodel remains robust, in both our Asset Management and Financial Consultingcompanies, giving us confidence for the financial year as a whole. Christopher Knight Chairman Brooks Macdonald Group plcConsolidated profit and loss accountfor the six months ended 31 December 2005 Six months ended Six months ended Year ended 31 December 2005 31 December 2004 30 June 2005 Unaudited Unaudited Audited £ £ £ Turnover 3,426,293 2,719,433 5,667,469 Administrative costs (3,406,425) (2,580,460) (5,325,892) ---------- ---------- ---------- 19,868 138,973 341,577 Other operating income 78,615 78,615 159,730 ---------- ---------- ---------- Operating profit 98,483 217,588 501,307 Income from current asset investments - 28 83 Interest receivable 88,588 48,483 120,337 ---------- ---------- ---------- 88,588 48,511 120,420 ---------- ---------- ---------- Profit on ordinary activities before tax 187,071 266,099 621,727 Tax on profit on ordinary activities (56,000) (85,468) (160,645) ---------- ---------- ---------- Profit on ordinary activities after 131,071 180,631 461,082taxation Dividends payable - - (98,110) Retained profit for the period 131,071 180,631 362,972 =========== ============= =========== Earnings per share Basic 1.34p n/a 5.16pDiluted 1.28p n/a 5.12p Brooks Macdonald Group plcConsolidated balance sheetat 31 December 2005 Six months ended Six months ended Year ended 31 December 2005 31 December 2004 30 June 2005 Unaudited Unaudited Audited £ £ £Fixed assetsTangible assets 155,130 98,025 118,954 Current assets Debtors 1,638,918 965,877 1,143,784 Investments 18,022 18,047 18,022 Cash at bank and in hand 2,799,366 1,277,245 2,716,227 ---------- ---------- ---------- 4,456,306 2,261,169 3,878,033 Creditors, amounts falling due within one (1,869,651) (1,068,212) (1,360,008)year ---------- ---------- ---------- Net current assets 2,586,655 1,192,957 2,518,025 ---------- ---------- ---------- Total assets less current liabilities 2,741,785 1,290,982 2,636,979 Creditors, amounts falling due after one (32,813) (35,938) (32,813)year Provisions for liabilities and charges (118,500) (110,000) (148,030) ---------- ---------- ---------- Net assets 2,590,472 1,145,044 2,456,136 ========== ========== =========== Capital and reserves Called up share capital 98,131 42,745 98,110 Share premium 1,365,910 289,280 1,362,666 Merger reserve 191,541 191,541 191,541 Profit and loss account 934,890 621,478 803,819 ---------- ---------- ---------- Equity shareholder funds 2,590,472 1,145,044 2,456,136 =========== ========== =========== Brooks Macdonald Group plcConsolidated cash flow statementfor the six months ended 31 December 2005 Six months ended Six months ended Year ended 31 December 2005 31 December 2004 30 June 2005 Unaudited Unaudited Audited £ £ £ Net cash inflow from operating activities 152,193 178,149 561,403 Returns on investments and servicing offinance Investment income received - 28 83 Interest received 88,588 48,483 120,337 ---------- ---------- ---------- 88,588 48,511 120,420Taxation Corporation tax paid 2,146 (85,461) Capital expenditure and financialinvestment Purchase of plant and equipment (62,797) (27,135) (78,671) Purchase of investments - (6,001) (6,001) ---------- ---------- ---------- (62,797) (33,136) (84,672) Equity dividends paid (98,110) (55,569) (61,358) FinancingIncrease in share capital 3,265 20,000 1,148,751 ---------- ---------- ---------- 3,265 20,000 1,148,751 ---------- ---------- ----------Net cash inflow in period 83,139 160,101 1,599,083 ========== ========== ========== Net funds at beginning of period 2,716,227 1,117,144 1,117,144 Net inflow 83,139 160,101 1,599,083 ---------- ---------- ----------Net funds at end of period 2,799,366 1,277,245 2,716,227 ========== ========== ========== Brooks Macdonald Group plcNotes to the interim resultsfor the period ended 31 December 2005 1 Basis of preparation The accounting policies used in preparing the interim report are as set out in the statutory accounts for the year ended 30 June 2005. The figures for the year ended 30 June 2005 have been extracted from the financial statements for that year, which have been filed with the Registrar of Companies. The auditors' report on those financial statements was unqualified and did not contain any statement under Section 237 (2) or (3) of the Companies Act 1985. 2 Taxation The corporation tax charge is based on the taxable profits at the current rate of 30% 3 Dividends The Board do not recommend the payment of an interim dividend. 4 Earnings per share Basic earnings per share are calculated by dividing Group profits after tax of GBP 131,000 by 9.81m, the weighted average number of ordinary shares in issue over the six months ended 31 December 2005. The resultant earnings per share for the period are 1.34p. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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