Trading Update

RNS Number : 4075Y

Brooks Macdonald Group PLC

24 January 2014

 



24 January 2014

BROOKS MACDONALD GROUP PLC

Half year trading update and Quarterly Announcement of Funds under Management

Notice of Half Year Results

Brooks Macdonald Group plc (the "Group"), the AIM listed integrated wealth management group, today announces a trading update for its half year ended 31 December 2013 together with an update on its funds under management.

Trading Update

Trading for the half year was in line with the Board's expectations, with revenues and profits ahead of the same period last year and strategic progress made through both organic and acquisitive initiatives.  

Funds under Management

Discretionary

As at 31 December 2013 discretionary funds under management totalled £5.68 billion (30 September 2013: £5.37 billion).

This represents an increase of 5.7% over the quarter. As a comparison the APCIMS balanced index grew by 3% over the quarter.

This represents all our discretionary funds across the Group (Asset Management, Funds and International) and this growth was a combination of performance (c£160m) and net new business (c£150m) over the quarter.

Over the first six months of the current financial year discretionary funds grew by £570 million, or 11.1%. This compares to the APCIMS balanced index that grew by 5% over the period.

Advisory

As at 31 December 2013 advisory funds managed by Brooks Macdonald International totalled £374m (30 September 2013: £354 million). 

Property assets under administration

The Group's property management business Braemar Estates had property assets under administration of £1.071 billion (30 September 2013: £1.071 billion). 

Third party assets under administration

Third party assets under administration are now in excess of £160 million (30 September 2013: >£140million). 

Formation of, and investment in, North Row Capital LLP

Brooks Macdonald Funds Ltd ("BMF"), one of the Group's subsidiaries, has entered into a new partnership, North Row Capital LLP ("the Partnership"), in which it will hold a 60% interest. The balance is owned by Steven Grahame and Gerald Parkes who developed the investment approach behind IFSL North Row Liquid Property Fund ("the Fund") which will offer investors liquid exposure to global real estate markets by investing mainly in property derivatives, as well as property equity and debt, to gain exposure to the direct property markets. BMF intends to launch the Fund in February 2014.

Establishment of the Partnership and the Fund in the financial year ending 30 June 2014 will lead to an investment of c.£300,000, of which approximately half has already been invested. Deferred consideration will be payable amounting to 13% of the third year revenue generated by the partnership; this is expected to total approximately £300,000 and is capped at £2m. The partnership is expected to break even in the financial year ending 30 June 2015, and to become profitable in the financial year ending 30 June 2016.

Levitas

As announced in December, the Group acquired an option to purchase Levitas Investment Management Services Limited ("Levitas") which will enable Brooks Macdonald Asset Management to extend its investment proposition while further enhancing its ability to meet a range of client attitudes to risk. The Group expects Levitas to achieve significant growth over the next five years and be earnings enhancing in the next financial year.

Notice of Results

The Group intends issuing its half year results on Wednesday 12 March 2014.

Chris Macdonald, Chief Executive of Brooks Macdonald, commented:

"The first half of our financial year has seen good progress made across the Group, with strong organic growth in funds under management aided in part by positive investment conditions. We continue to review interesting acquisition opportunities as evidenced by the Levitas and North Row Capital transactions, both of which further enhance our investment offering."

ENDS

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.

 

END

 

 

MSCLLFSRLRIVFIS