Quarterly FUM & Intention to Move to Main Market

Brooks Macdonald Group PLC

15 January 2025

 

15 January 2025

BROOKS MACDONALD GROUP PLC

Quarterly Flows and FUM update and Intention to Move to the Main Market

Brooks Macdonald Group plc ("Brooks Macdonald" or the "Group") today announces flows and funds under management ("FUM") for the quarter ended 31 December 2024 and its intention to move from AIM to the London Stock Exchange's Main Market.

Andrea Montague, CEO of Brooks Macdonald commented:

"This is Brooks Macdonald's strongest quarter of gross inflows for 18 months, driven by the quality of our service, the scope of products tailored to meet clients' needs, and our strong investment performance.

While outflows remained elevated in the quarter, we are taking actions to improve asset retention as well as driving new business growth. Additionally, we continue to scale and enhance our financial planning expertise, including most recently through the acquisitions of LIFT, Lucas Fettes and CST Wealth Management. We remain focused on the execution of our strategy to reignite growth, serving our clients well, reaching more clients, and delivering value for our clients, shareholders and employees.

I am pleased to announce the Board's intention to transition Brooks Macdonald from AIM to the Main Market. This move will further enhance the Group's corporate profile and extend the opportunity to own its ordinary shares to a broader group of investors."

Flows and Funds under Management

·    Total Funds under Management of £17.9bn at 31 December 2024 (30 September 2024: £17.9bn¹, 30 June 2024: £17.8bn¹). Total FUM excluding BMI of £15.7bn at 31^st December 2024 (30 September 2024: £15.6bn, 30 June 2024 £15.5bn).

·    Gross inflows excluding BMI were robust in the 3 months to 31 December at £579m. These were offset by £(730)m of gross outflows. Net outflows in the quarter totalled £(151)m, equivalent to (1.0)% of opening FUM.

·    Net inflows to our MPS Platform business² were encouraging at £146m, representing annualised organic net flows in the quarter of 13% of opening FUM, continuing the strong growth in the prior quarter.

·    Investment performance contributed £0.2bn towards FUM in the quarter against a mixed market background.

Trading update

·    The Group anticipates its full year performance will be in line with its expectations and expects a return to positive net flows later in the year.

Intention to move from AIM to the Main Market

Brooks Macdonald announces today its intention to apply to the Financial Conduct Authority for the Group's ordinary shares to be admitted to the Equity Shares (Commercial Companies) segment of the Official List and to trading on the Main Market of the London Stock Exchange ("Admission").

Since being founded in 1991 and listing on AIM in 2005, the Group has demonstrated a strong commercial and financial track record, scaled shareholder returns and built a broad and supportive shareholder base. The Board considers that Admission would further enhance the Group's corporate profile, as well as extending the opportunity to own its ordinary shares to a broader group of investors.

Brooks Macdonald does not intend to raise any funds or offer any new shares in connection with the Admission or the publication of the related prospectus. The Admission will be effected through an introduction of the Company's existing ordinary shares and is expected to occur no earlier than 4 March 2025 and by 31 March 2025, at which time the Group's listing on AIM is expected to be cancelled. Accordingly, the Group hereby gives notice of the intended cancellation of trading of its ordinary shares on AIM in accordance with Rule 41 of the AIM Rules for Companies.

Admission is subject to the approval by the FCA of a prospectus and the ordinary shares being admitted by the FCA to the Official List and by the London Stock Exchange to trading on the Main Market. Admission is not conditional upon shareholder approval. Shareholders should note that the Group's shares will no longer be traded on AIM with effect from Admission and should consult their own professional advisers regarding the consequences of Admission.

Brooks Macdonald will make a further announcement in due course.

Enquiries:

Investors

Brooks Macdonald Group plc  

Andrea Montague, CEO

Katherine Jones, CFO

Alexander Holcroft, Interim Director of Investor Relations

Phone: [phone]

Email: [e-mail]

Singer Capital Markets (Nominated Adviser and Joint Broker)
Charles Leigh-Pemberton / James Moat	[phone]
Investec Bank plc (Joint Broker and Sponsor in connection with Admission)
Christopher Baird / David Anderson	[phone]
Teneo (Media Enquiries)
Misha Bayliss	[phone]
Oscar Burnett	[phone]
Email: [e-mail]

 Net flows by service for the quarter  ended 31 December 20241

Quarter ended 31 December 2024 (£m)
	Opening FUM as at 1 Oct 24	Organic net flows	Investment performance	Closing FUM as at 31 Dec 24	Organic net flows as % of opening FUM	Movement in FUM
BPS	8,835	(232)	79	8,682	(2.6)%	(1.7)%
MPS Custody	961	(26)	10	945	(2.7)%	(1.7)%
MPS Platform	4,554	146	73	4,773	3.2%	4.8%
MPS total	5,515	120	83	5,718	2.2%	3.7%
Funds	1,286	(39)	11	1,258	(3.0)%	(2.2)%
UK total	15,636	(151)	173	15,658	(1.0)%	0.1%
International	2,271	(43)	46	2,274	(1.9)%	0.1%
Total	17,907	(194)	219	17,932	(1.1)%	0.1%

Net flows by service for the six months  ended 31 December 20241

Six months ended 31 December 2024 (£m)
	Opening FUM as at 1 Jul 24	Organic net flows			Total  YTD investment performance	Closing FUM as at 31 Dec 24	Organic net flows as % of opening FUM	Movement in FUM
		Q1	Q2	Total YTD
BPS	8,880	(176)	(232)	(408)	210	8,682	(4.6)%	(2.2%)
MPS Custody	974	(26)	(26)	(52)	23	945	(5.3)%	(3.0%)
MPS Platform	4,367	142	146	288	118	4,773	6.6%	9.3%
MPS total	5,341	116	120	236	141	5,718	4.4%	7.1%
Funds	1,323	(51)	(39)	(90)	25	1,258	(6.8)%	(4.9)%
UK total	15,544	(111)	(151)	(262)	376	15,658	(1.7)%	0.7%
International	2,262	(16)	(43)	(59)	71	2,274	(2.6)%	0.5%
Total	17,806	(127)	(194)	(321)	447	17,932	(1.8)%	0.7%

Analysis of FUM gross flows by service in the quarters ending 30 September and 31 December 20241

	Q1 FY25 3 months ended 30 Sept			Q2 FY25 3 months ended 31 Dec
	Gross inflows	Gross outflows	Net flows	Gross inflows	Gross outflows	Net flows
BPS	160	(336)	(176)	166	(398)	(232)
MPS Custody	14	(40)	(26)	12	(38)	(26)
MPS Platform	311	(169)	142	317	(171)	146
MPS total	325	(209)	116	329	(209)	120
Funds	43	(94)	(51)	84	(123)	(39)
UK total	528	(639)	(111)	579	(730)	(151)
International	52	(68)	(16)	51	(94)	(43)
Total	580	(707)	(127)	630	(824)	(194)

1 All FUM numbers exclude the Defensive Capital Fund ("DCF"). The transfer of the investment management  of DCF to RM Capital Markets Limited completed in November 2024. The DCF closing FUM at completion date was of £133.5 million.

² Includes Brooks Macdonald Investment Solutions ("BMIS"), the Group's B2B offering for financial advisers.

Notes to editors

About Brooks Macdonald

Brooks Macdonald Group plc is a leading provider of wealth management services in the UK.

Proudly serving clients since 1991 and trading on AIM since 2005, Brooks Macdonald is independent, financially strong, and aims to deliver strong and consistent investment performance for clients to meet their financial objectives. The company's broad and diverse product range means that clients get solutions made just for them and allows Brooks Macdonald to support clients throughout their entire lives as needs and circumstances change.  The company is recognised as an innovator in the industry having been amongst the first to develop and launch key products such as Managed Portfolio Service (MPS) and bespoke income solutions.

Realising Ambitions. Securing Futures. We are Brooks Macdonald.

Forward-looking statements

This announcement may include statements, beliefs or opinions that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "targets", "aims", "continues", "expects", "intends", "hopes", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. No representation or warranty is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements contained in the announcement speak only as of their respective dates, reflect Brooks Macdonald's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to Brooks Macdonald's business, results of operations, financial position, liquidity, prospects, growth and strategies.

Except as required by any applicable law or regulation, Brooks Macdonald expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this announcement or any other forward-looking statements it may make whether as a result of new information, future developments or otherwise.

Investec Bank plc ("Investec") is authorised by the Prudential Regulation Authority (the "PRA") and regulated in the United Kingdom by the PRA and the Financial Conduct Authority (the "FCA"). Investec is acting exclusively for Brooks Macdonald and no one else in connection with Admission, the contents of this announcement or any other matters described in this announcement. Investec will not regard any other person as its client in relation to Admission, the content of this announcement or any other matters described in this announcement and will not be responsible to anyone other than Brooks Macdonald for providing the protections afforded to its clients or for providing advice to any other person in relation to Admission, the content of this announcement or any other matters referred to in this announcement. This announcement has been issued by and is the sole responsibility of Brooks Macdonald. No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by Investec or by any of its, subsidiaries, branches or affiliates, or any person acting on its or their respective behalf's as to, or in relation to, the accuracy or completeness of this announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.

LEI: 213800WRDF8LB8MIEX37

www.brooksmacdonald.com / @BrooksMacdonald

 

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