Brooks Macdonald announces strong results, sale of international arm

Brooks Macdonald Group reported strong full-year financial results on Thursday, alongside a number of strategic developments.

The AIM-traded wealth management firm posted a 12.5% rise in underlying profit before tax for the 12 months ended 30 June, reaching £34.1m, driven by increased funds under management and revenue growth.

Funds under management rose 7% to £18bn, while revenue increased 3.6% to £128.6m.

Despite elevated outflows due to macroeconomic pressures, Brooks Macdonald said it maintained strong performance across its investment strategies and announced its 19th consecutive annual dividend increase.

The board proposed a final dividend of 49p per share, up 4.3% year-on-year, taking the total dividend per share to 78p, up 4% over last year.

“Despite the challenging market conditions, we have delivered good results, with our funds under management growing to £18.0 billion and having maintained strong underlying profit margins,” said outgoing chief executive officer Andrew Shepherd.

“This performance is a testament to our robust business model and the unwavering commitment of our people.”

In a strategic move, Brooks Macdonald announced that it had agreed to sell its international arm, Brooks Macdonald International (BMI), to Canaccord Genuity Wealth Management for up to £50.85m.

The board said the divestment followed a strategic review aimed at streamlining operations and focusing on core UK investment management services.

It said the proceeds from the sale, expected to be completed by March next year, would allow the company to invest further in its core business and pursue targeted mergers and acquisitions.

“We are pleased to announce the sale of BMI to Canaccord as their presence and understanding of the local markets will provide a strong foundation for the future growth and development of the business,” said chief financial officer and CEO designate Andrea Montague.

Additionally, Brooks Macdonald said it had appointed Katherine Jones as its new chief financial officer, effective 1 November, subject to regulatory approval.

It said Jones would bring extensive experience from her previous roles at Phoenix Group and Prudential.

“Brooks Macdonald is a fantastic business with ambitious growth plans,” Katherine Jones said.

“I am thrilled to be joining at this exciting time and look forward to working with Andrea and all the team to deliver against the company's redefined strategy announced today and seek to create further value for shareholders and other stakeholders.”

At 1015 BST, shares in Brooks Macdonald Group were down 0.94% at 1,877.25p.

Reporting by Josh White for Sharecast.com.