Interim Results - Amendment

RNS Number : 0460P

Brooks Macdonald Group PLC

18 March 2009

 



Further to the interim results announcement made at 7.00am today under RNS number 0166P, a correction has been made to the year ended 30.06.08 figures within the Highlights table.

All other details remain unchanged.

A full copy of the corrected announcement is set out below.

18 March 2009

Brooks Macdonald Group plc

Interim results for the six months ended 31 December 2008

Brooks Macdonald Group plc (the 'Group'), the fee-based integrated private client discretionary asset management and financial advisory group, today announces its interim results for the six months ended 31 December 2008.

Highlights

	Six months to  31.12.08	Six months to  31.12.07	% Change	Year ended  30.06.08
Revenue	£9.65m	£7.8m	Up 23%	£16.79m
Pre-tax profits	£1.26m	£0.86m	Up 46%	£2.03m
Basic earnings per share	8.35p	6.74p	Up 24%	12.41p
Diluted earnings per share	8.22p	6.54p	Up 26%	12.08p

• Funds under management rose by over 3% during the period to £1.218 billion (30.6.08 £1.18 billion), despite weak investment markets

• Strong growth in SIPPs market 

• Continued investment in building the business

Commenting on the results, Chris Macdonald, CEO, said:

'These results reflect not only the continued excellent progress made by the Group but also the robust nature of our business model. Whilst the current economic environment remains very challenging, the Group is well positioned to build on its recent growth both organically and through opportunities that may arise.' 

Enquiries to:

Brooks Macdonald Group plc                [phone]

Chris Macdonald, Chief Executive

Simon Jackson, Finance Director

Collins Stewart Europe Limited            [phone]

Bruce Garrow

Bankside Consultants                             [phone]

Simon Rothschild

Oliver Winters

Notes to Editors

There are three trading companies within the Group. Brooks Macdonald Asset Management Limited and Brooks Macdonald Financial Consulting Limited are both authorised and regulated by the Financial Services Authority and offer a fee based service to a range of clients. Brooks Macdonald Services Limited which is not regulated provides custody and nominee services to our clients. 

Brooks Macdonald Asset Management provides a bespoke, personalised fund management service mainly to individuals but also to trusts and charities. Brooks Macdonald Financial Consulting advises individuals, families and businesses of all sizes on a long term-basis on a broad range of services including pensions, mortgages and employee benefits.

Chairman's Statement

I am pleased to report a strong set of results for the first half of our financial year, the six months ended 31 December 2008. 

On turnover of £9.65million, an increase of 23.4% over the corresponding period last year, we have achieved pre-tax profits of £1.26million, a rise of 46%. Earnings per share have increased from 6.74p to 8.35p.

Funds under management at 31 December 2008 were £1.21 billion, compared with £1.18 billion at 30 June 2008. This increase is a considerable achievement when viewed in the context of the sharp decline in global markets over that time. Our new business efforts have continued to be very successful, particularly in the SIPPs market and through various strategic alliances. Our two regional offices, in Winchester and Manchester, have performed well: we intend to expand our regional presence in the coming months. We have continued to recruit high quality experienced fund managers, and to invest in the further development of the business. Our performance continues to be robust, which coupled with high cash weightings should lead to increased profitability in the second half of the financial year.

Reflecting the continued growth of the business, Nicholas Holmes and Andrew Shepherd were appointed Joint Managing Directors of Brooks Macdonald Asset Management in September 2008.

Brooks Macdonald Services also had a strong six months. It gives the Group considerable operational leverage and enables expansion of our asset management business without the back office constraints.

Brooks Macdonald Financial Consulting has inevitably been affected by the economic downturn and did well to achieve a turnover only slightly below that of last year.

The economic outlook continues to be highly challenging, and is clearly a significant threat to investment assets. Equally we believe that it presents us with a number of opportunities, given our effective distribution channels and the quality of our staff. 

Christopher Knight

Chairman

17 March 2009

Brooks Macdonald Group plc

Consolidated income statement for the six months ended 31 December 2008

	Note	31 December 2008(unaudited)	31 December 2007(unaudited & restated)	30 June 2008(audited)
		£	£	£
Revenue		9,646,264	7,810,900	16,786,350
Administrative costs		(8,530,789)	(7,114,561)	(15,074,405)
Operating profit		1,115,475	696,339	1,711,945
Finance income		144,004	166,616	315,530
Profit before taxation		1,259,479	862,955	2,027,475
Taxation		(425,703)	(201,079)	(808,384)
Profit for the period		833,776	661,876	1,219,091
Earnings per share	3
Basic earnings per share		8.35p	6.74p	12.41p
Diluted earnings per share		8.22p	6.54p	12.08p

Consolidated interim balance sheet as at 31 December 2008

	Note	31 December 2008(unaudited)	31 December 2007(unaudited & restated)	30 June 2008(audited)
		£	£	£
Assets
Non current assets
Property, plant and equipment		1,192,982	631,093	876,941
Intangible assets	5	517,401	444,189	605,271
Total non current assets		1,710,383	1,075,282	1,482,212
Current assets
Trade and other receivables		2,435,492	2,407,387	2,840,270
Deferred taxation		-	98,883	20,980
Available- for sale financial assets	6	804,975	37	-
Cash and cash equivalents		5,813,752	5,205,122	5,923,712
Total current assets		9,054,219	7,711,429	8,784,962
Total assets		10,764,602	8,786,711	10,267,174
Current liabilities
Trade and other payables		(3,679,835)	(2,970,924)	(4,037,849)
Current tax liabilities		(403,490)	(781,720)	(310,482)
Total current liabilities		(4,083,325)	(3,752,644)	(4,348,331)
Non current liabilities
Provisions	7	(189,930)	(194,800)	(53,607)
Other non current liabilities		(17,188)	(23,439)	(20,313)
Total non current liabilities		(207,118)	(218,239)	(73,920)
Net assets		6,474,159	4,815,828	5,844,923
Financed by:
Equity
Share capital		99,875	98,131	99,850
Share premium account		1,574,506	1,365,910	1,571,031
Other reserves		955,340	548,863	813,903
Retained earnings		3,844,438	2,802,924	3,360,139
Total equity		6,474,159	4,815,828	5,844,923

Consolidated interim cash flow statement for the six months ended 31 December 2008

	Note	Six months ended 31 December 2008(unaudited)	Six months ended 31 December 2007(unaudited & restated)	Year ended 30 June 2008(audited)
		£	£	£
Cash inflow from operating activities
Cash generated from operations	8	1,632,909	769,005	2,642,457
Taxation paid		(330,079)	-	(836,285)
Net cash from operating activities		1,302,830	769,005	1,806,172
Cash flow from investing activities
Purchase of property, plant and equipment		(451,518)	(254,030)	(605,519)
Purchase of intangible assets		(20,906)	(211,794)	(534,636)
Purchase of investment securities		(738,393)	-	-
Interest received		144,004	166,616	315,530
Net cash used in investing activities		(1,066,813)	(299,208)	(824,625)
Cash flows from financing activities
Proceeds of issue of shares		3,500	-	206,840
Dividends paid to shareholders		(349,477)	(220,795)	(220,795)
Net cash used in financing activities		(345,977)	(220,795)	(13,955)
Net (decrease)/ increase in cash and cash equivalents		(109,960)	249,002	967,592
Cash and cash equivalents at start of period		5,923,712	4,956,120	4,956,120
Cash and cash equivalents at end of period		5,813,752	5,205,122	5,923,712

Consolidated statement of changes in equity from 1 July 2007 to 31 December 2008

	Share capital	Share premium account	Share option reserve (restated- note a)	Merger  reserve	Available  for sale reserve	Retained earnings  (restated-note a)	Total
	£	£	£	£	£	£	£
At 1 July 2007	98,131	1,365,910	357,322	191,541	-	2,361,843	4,374,747
Profit for the period	-	-	-	-	-	661,876	661,876
Dividends paid	-	-	-	-	-	(220,795)	(220,795)
Share option movement	-	-	-	-	-	-	-
At 31 December 2007	98,131	1,365,910	357,322	191,541	-	2,802,924	4,815,828
Issue of shares for cash	1,719	205,121	-	-	-	-	206,840
Profit for the period	-	-	-	-	-	557,215	557,215
Deferred tax-share options	-	-	27,071	-	-	-	27,071
Share option movement	-	-	237,969	-	-	-	237,969
At 30 June 2008	99,850	1,571,031	622,362	191,541	-	3,360,139	5,844,923
Issue of shares for cash	25	3,475	-	-	-	-	3,500
Profit for the year	-	-	-	-	-	833,776	833,776
Fair value gain on available-for-sale assets	-	-	-	-	66,582	-	66,582
Dividends paid	-	-	-	-	-	(349,477)	(349,477)
Deferred tax-share options	-	-	(18,367)	-	-	-	(18,367)
Share option movement	-	-	93,222	-	-	-	93,222
At 31 December 2008	99,875	1,574,506	697,217	191,541	66,582	3,844,438	6,474,159

Note (a) The figures for 31 December 2007 have been restated resulting from the adjustments made in the year ended 30 June 2007 in respect of presenting the Group's financial statements under IFRS.

Notes to the consolidated interim accounts for the six months ended 31 December 2008

1    Basis of preparation

These interim accounts are presented in accordance with IAS 34 'Interim Financial Reporting'. The interim accounts have been prepared on basis of the accounting policies, methods of computation and presentation set out in the Group's consolidated accounts for the year ended 30 June 2008 except as stated below. The interim accounts should be read in conjunction with the Group's audited accounts for the year ended 30 June 2008.

There is an additional accounting policy in respect of available for sale financial assets. These financial assets are initially recognised at fair value with any subsequent changes in fair value recognised directly in equity. When an asset is disposed of or impaired, any cumulative gain or loss previously recognised in equity is transferred to the income statement. 

The information in this announcement does not comprise statutory accounts within the meaning of section 240 of the Companies Act 1985. The Group's accounts for the year ended 30 June 2008 have been reported on by the auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not draw attention to any matters by way of emphasis. They also did not contain a statement under section 237(2) of the Companies Act 1985.

2    Segmental information

For management purposes the Group's activities are organised into two operating divisions, investment management and financial planning. The Group's other activity, offering nominee and custody services to clients, has been included in investment management. These divisions are the basis on which the Group reports its primary segmental information.

Revenues and expenses are allocated to the business segment that originated the transaction. Revenues and expenses that are not directly originated by a business segment are reported as unallocated. Centrally incurred expenses are allocated to business segments on an appropriate pro-rata basis. Segmental assets and liabilities comprise operating assets and liabilities, being the majority of the balance sheet. 

Period ended 31 December 2008(unaudited)		Investment management	Financial planning	Total
		£	£	£
Total revenues		8,591,624	1,300,903	9,892,527
Inter company revenues		(246,263)	-	(246,263)
External revenues		8,345,361	1,300,903	9,646,264
Segmental result		1,463,693	57,079	1,520,772
Unallocated items				(261,293)
Profit before tax				1,259,479
Taxation				(425,703)
Profit for the period				833,776
At 31 December 2008
Segment assets		8,893,783	1,870,395	10,764,178
Unallocated assets				424
Total assets				10,764,602
Segment liabilities		2,160,307	1,741,862	3,902,169
Unallocated liabilities				388,274
Total liabilities				4,290,443
Capital expenditure		-	451,516	451,516
Depreciation		-	244,250	244,250
Provisions charged		147,500	57,430	204,930
Provisions utilised		21,607	47,000	68,607

Period ended 31 December 2007(unaudited & restated)		Investment management	Financial planning	Total
		£	£	£
Total revenues		6,461,963	1,416,321	7,878,284
Inter company revenues		(67,384)	-	(67,384)
External revenues		6,394,579	1,416,321	7,810,900
Segmental result		885,080	55,785	940,865
Unallocated items				(77,910)
Profit before tax				862,955
Taxation				(201,079)
Profit for the period				661,876
At 31 December 2007
Segment assets		7,213,029	1,474,514	8,687,543
Unallocated assets				99,168
Total assets				8,786,711
Segment liabilities		2,365,812	1,384,255	3,750,067
Unallocated liabilities				220,816
Total liabilities				3,970,883
Capital expenditure		-	465,824	465,824
Depreciation		-	221,749	221,749
Provisions charged		18,000	19,500	37,500
Provisions utilised		30,000	17,690	47,690

Year ended 30 June 2008 (audited)		Investment management	Financial planning	Total
		£	£	£
Total revenues		14,404,098	2,648,611	17,052,709
Inter company revenues		(266,359)	-	(266,359)
External revenues		14,137,739	2,648,611	16,786,350
Segmental result		2,163,496	127,021	2,290,517
Unallocated items				(263,042)
Profit before tax				2,027,475
Taxation				(808,384)
Profit for the year				1,219,091
At 30 June 2008
Segment assets		7,711,961	1,426,073	9,138,034
Unallocated assets				1,129,140
Total assets				10,267,174
Segment liabilities		2,299,596	1,495,319	3,794,915
Unallocated liabilities				627,336
Total liabilities				4,422,251
Capital expenditure		-	605,519	605,519
Depreciation		-	489,150	489,150
Provisions charged		9,607	23,000	32,607
Provisions utilised		66,000	117,990	183,990

  Geographical segments

 The Group's operations are all located in the United Kingdom.

3.    Earnings per share

	Six months ended 31 December 2008 (unaudited)	Six months ended 31 December 2007 (unaudited & restated)	Year ended 30 June 2008 (audited)
	£	£	£
Earnings attributable to ordinary shareholders	833,776	661,876	1,219,091
	No.	No.	No.
Weighted average number of shares	9,982,942	9,813,100	9,813,100
Share issues	2,500	-	10,209
Basic earnings per share denominator	9,985,442	9,813,100	9,823,309
Issuable on exercise of options	154,357	308,334	268,504
Diluted earnings per share denominator	10,139,799	10,121,434	10,091,813
Basic earnings per share	8.35p	6.74p	12.41p
Diluted earnings per share	8.22p	6.54p	12.08p

4.    Dividends 

	Six months ended 31 December 2008 (unaudited)	Six months ended 31 December 2007 (unaudited)	Year ended 30 June 2008 (audited)
	£	£	£
Paid final dividend on ordinary shares	349,477	220,795	220,795

5  Intangible assets

Intangible assets relate to payments made to key fee earners in return for an alternative commission structure and deferred payments in respect of the acquisition of new teams of fund managers. 

6.    Available- for sale financial assets

	Six months ended 31 December 2008 (unaudited)	Six months ended 31 December 2007 (unaudited)	Year ended 30 June 2008 (audited)
	£	£	£
At 1 July 2008	-	37	37
Additions - UK Government Gilt	738,393	-	-
Gains from changes in fair value	66,582	-	-
Provision for the period	-	-	(37)
At 31 December 2008	804,975	37	-

7    Non-current provisions

		31 December  2008 (unaudited)	31 December 2007 (unaudited)	30 June  2008 (audited)
		£	£	£
	At 1 July 2008	53,607	204,990	204,990
	Charged to income statement	204,930	37,500	32,607
	Paid during the period	(68,607)	(47,690)	(183,990)
	At 31 December 2008	189,930	194,800	53,607

Provisions relate to the potential liability resulting from client complaints against the Group. The complaints are assessed on a case by case basis and provisions for compensation are made where judged necessary. Complaints are on average settled within eight months from the date of notification of the complaint.

8.    Reconciliation of operating profit and net cash inflow from operating activities

	31 December 2008(unaudited)	31 December 2007 (unaudited & restated)	30 June 2008 (audited)
	£	£	£
Operating profit	1,115,475	696,339	1,711,945
Depreciation	135,474	88,707	194,347
Amortisation of intangible assets	108,776	133,042	294,803
Financial assets written down	-	-	37
Decrease/(increase) in debtors	404,778	333,106	(99,777)
(Decrease)/increase in creditors	(358,014)	(612,409)	454,516
Increase/(decrease) in provisions	133,198	(10,190)	(151,383)
Share based payments	93,222	140,410	237,969
Net inflow	1,632,909	769,005	2,642,457

Interim results for the six months ended 31 December 2008

Independent Review Report to Brooks Macdonald Group Plc

Introduction

We have been instructed by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2008 set out on pages 2 to 9. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors' responsibilities

The half-yearly financial report, including the financial information contained therein, is the responsibility of, and has been approved by the directors. The AIM Rules of the London Stock Exchange require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed.

 This half-yearly financial report has been prepared in accordance with the International Accounting Standard 34, 'Interim Financial Reporting'.

The maintenance and integrity of the company's website is the responsibility of the directors; the work we have carried out does not involve consideration of these matters and, accordingly, we accept no responsibility for any changes that may have occurred to the condensed set of financial statements presented on the website.

Legislation in the United Kingdom governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.  

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists principally of making enquiries of management and applying analytical procedures to the financial information and underlying financial data and based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with International Standards on Auditing (UK and Ireland) and therefore provides a lower level of assurance than an audit. Accordingly we do not express an audit opinion on the financial information.  

Review conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2008 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union.  

St Paul's House  
Warwick Lane                                                                                                                                   Moore Stephens LLP
LONDON EC4M 7BP                                                                                                                       Registered Auditors
                                                                                                                                                             Chartered Accountants

17 March 2009

 

END

 

 

IR ZGGMFLRFGLZG