Strong figures from wealth manager
Funds surge 25.9% at Brooks Macdonald
Underlying profits in the year to the end of June rose 19% as assets managed by the business increased by 25.9% to £10.5 billion.
Caroline Connellan, chief executive said: “I am encouraged by the strong underlying results we are reporting for the year.
“We are making progress on the initiatives I outlined in July, to invest in our risk and operational framework and to proactively deal with certain legacy matters.
“In addition, to support the focus on our core business and our drive to improve margins, today we have announced the sale of Braemar Estates, our property management business.”
Braemar Estates is being acquired by Rendall & Rittner, an operator in the property management sector, for £1.9 million on a cash free, debt free basis.
Ms Connellan added: “As we look to the future and build on our success to date, my focus is on positioning the business to capture the significant growth opportunities open to us. We will continue to enhance the services we offer and improve business efficiency while responding to the rapidly changing competitive and regulatory environment, and the increasing influence of technology.
“I am confident that these actions will result in a much stronger platform to deliver sustainable long-term growth, upholding our commitment to protect our clients’ best interests and supporting our relationships with key intermediaries.
“We have started our new financial year with positive momentum and look forward with confidence, notwithstanding our relative caution around markets and client sentiment.”
· 19% increase in underlying profit before tax; all four business segments reported underlying profit before tax
· Statutory profit before tax fell principally due to the previously announced £6.5m legacy matters provision
· Total dividend increased by 17% to 41p (2016: 35p)
· Sale of Braemar Estates, the property management business, announced separately today for £1.9m in line with a focus on core offerings and to improve the Group’s margin
· 26% increase in discretionary FUM which passed the £10bn milestone
o Organic growth (net new discretionary business) of £1bn (11.5% increase)
o Investment performance of £1.2bn (14.5% increase); as a comparison, the FTSE UK Private Investor Balanced Index increased by 10.5% over the year
o Funds grew 46% to exceed £1.2bn FUM (2016: £796m); Defensive Capital Fund now exceeds £425m
o IT system development delivered as planned
o Investment in risk management and operational framework reflecting increased scale of business and categorisation as an IFPRU significant firm
o Proactively dealing with certain legacy matters arising from the former Spearpoint business, reflecting commitment to treating customers fairly and supporting relationships with professional intermediaries
· Expansion of our distribution capabilities, enhancing reach in the UK and internationally:
o Added two new strategic alliances with professional intermediaries, including the first internationally
o Expanded regional footprint with new investment management office opening in Cardiff
o Portfolios across all risk mandates achieving above-benchmark returns according to Asset Risk Consultants (ARC)