Trading Statement

RNS Number : 0739K

Brooks Macdonald Group PLC

25 July 2013

 



25 July 2013

BROOKS MACDONALD GROUP PLC

Full Year Trading Update and Quarterly Announcement of Funds under Management

Brooks Macdonald Group plc (the "Group"), the AIM listed integrated wealth management group, today announces a trading update for its year ended 30 June 2013 together with an update on its funds under management.

Trading Update

Trading for the year was in line with the Board's expectations, with revenues and profits ahead of the prior year and significant progress made in all areas of the business.

This has been another strong year for the Group with growth in profits, funds under management and the acquisition of Spearpoint Ltd (now renamed Brooks Macdonald International) giving exposure offshore.

The integration of Spearpoint has gone well, both from a client and staff perspective. Our focus for 2013 and beyond now moves to growing its international presence and funds under management.

Funds under Management

Discretionary

As at 30 June 2013 discretionary funds under management totalled £5.11 billion (30 June 2012: £3.52 billion).

This represents an increase of £140m, or 2.8%, over the final quarter. As a comparison the APCIMS Balanced index declined by 2.1% over the quarter.

Over the year discretionary funds grew by £1.590 billion, or 45%, and net of the acquisition of Spearpoint by £904 million, representing 25.6% over the period. This compares to the APCIMS Balanced index that grew by 9.8% over the period.

Included in the above total is Brooks Macdonald Funds, which now incorporates the former Spearpoint funds; it had funds under management of £390m million at the year end, or £329 million net of the Spearpoint Funds (30 June 2012: £148 million).

Discretionary funds under management acquired as part of the Spearpoint acquisition totalled £686m (£601m Portfolios and £85m in funds). At year end this totalled £650m.

Advisory

As at 30 June 2013 advisory funds under management (formerly managed by Spearpoint) totalled £348 million (31 December 2012: £357m).

Property assets under administration

The Group's property management business, Braemar Estates, had property assets under administration of £1040 million at the year end (30 June 2012: £865 million), an increase of 20%, or £175 million.

Third party assets under administration

The Group successfully launched its new investment management administration service in April 2012, having become an Application Service Provider ('ASP').  Following this launch, third party assets under administration are now in excess of £140 million.

Growth Investment

As the Group plans ahead for continued organic growth and the launch of new funds, we have taken a number of steps to ensure the business is fully equipped to continue its success.  For example, we have taken the decision to upgrade the existing IT environment across the whole of the Group and to host our servers within an external third party data centre and, ahead of RDR, positioned our Managed Portfolio Service ('MPS') fees at the same level across new and existing funds. In addition, in common with the industry as a whole, compliance and regulatory costs have increased significantly.

The Board believes continued investment is necessary to properly manage a business of our scale, mindful of its continued trajectory for organic growth and expects the Group to benefit from such investment over the medium to longer term.  In the year ending June 2014, however, there will be an adverse impact on our margins due to these initiatives.

Chris Macdonald, Chief Executive of Brooks Macdonald, commented:

"The last year has been very active, with the successful acquisition and integration of Spearpoint, strong organic growth, the launch of new funds and significant investment across the business.

We anticipate making further progress in maintaining this organic growth of funds under management in the new financial year and the Board remains confident for the future prospects of the Group."

Enquiries

Brooks Macdonald Group PLC

Chris Macdonald - Chief Executive                                                                                  020 7499 6424

Simon Jackson - Finance Director                                                               www.brooksmacdonald.com

Canaccord Genuity (Nominated Adviser & Broker)

Bruce Garrow/Joe Weaving                                                                                             020 7523 8350

MHP Communications

Reg Hoare / Barnaby Fry / Simon Hockridge / Giles Robinson                                           020 3128 8100

Notes to editors

Brooks Macdonald Group plc is an AIM listed, integrated, wealth management group. The group consists of six principal companies: Brooks Macdonald Asset Management  Limited, a discretionary asset management business; Brooks Macdonald Funds Limited, a fund management business; Brooks Macdonald Financial Consulting Limited, a financial advisory and employee benefits consultancy; Brooks Macdonald Asset Management (International) Limited, a Jersey and Guernsey based provider of discretionary investment management and stock broking; Brooks Macdonald Retirement Services (International) Limited, a retirement planning services provider and Braemar Estates (Residential) Limited, an estate management company

 

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