Brooks Macdonald Group, a leading wealth management firm, announced robust full-year financial results and strategic developments on Thursday. The company reported a 12.5% increase in underlying profit before tax for the 12 months ended 30 June, totaling £34.1 million. This growth was driven by a rise in funds under management and revenue expansion.
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 grew by 7% to £18 billion, while revenue increased by 3.6% to £128.6m. Despite facing challenges such as elevated outflows due to macroeconomic pressures, Brooks Macdonald maintained strong performance across its investment strategies. The company also announced its 19th consecutive annual dividend increase.
The board proposed a final dividend of 49p per share, up 4.3% year-on-year, bringing the total dividend per share to 78p, a 4% increase over the previous year. Outgoing CEO Andrew Shepherd expressed satisfaction with the results, stating, “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. This performance is a testament to our robust business model and the unwavering commitment of our people.”
In a strategic move, Brooks Macdonald revealed that it had agreed to sell its international arm, Brooks Macdonald International (BMI), to Canaccord Genuity Wealth Management for up to £50.85 million. The decision to divest BMI followed a strategic review aimed at streamlining operations and focusing on core UK investment management services. The proceeds from the sale, expected to be completed by March next year, will enable the company to invest further in its core business and pursue targeted mergers and acquisitions.
Chief Financial Officer and CEO designate Andrea Montague commented on the sale, stating, “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.” Additionally, the company announced the appointment of Katherine Jones as its new chief financial officer, effective 1 November, pending regulatory approval. Jones brings extensive experience from her previous roles at Phoenix Group and Prudential.
Katherine Jones expressed excitement about joining Brooks Macdonald, saying, “Brooks Macdonald is a fantastic business with ambitious growth plans. 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.”
The company’s shares were down 0.94% at 1,877.25p at 1015 BST. Despite the slight decline in share price, Brooks Macdonald remains optimistic about its future prospects and growth opportunities in the wealth management sector.
Strategic Developments
Brooks Macdonald’s decision to sell its international arm, BMI, to Canaccord Genuity Wealth Management for up to £50.85 million marks a significant strategic move for the company. By divesting BMI, Brooks Macdonald aims to streamline its operations and focus on its core UK investment management services. This strategic review reflects the company’s commitment to optimizing its business model and enhancing its overall performance.
The sale of BMI will provide Brooks Macdonald with additional capital to invest in its core business and pursue targeted mergers and acquisitions. This strategic allocation of resources aligns with the company’s growth objectives and long-term vision for expansion in the wealth management industry. By leveraging the proceeds from the sale, Brooks Macdonald can strengthen its position in the market and explore new opportunities for growth and innovation.
Financial Performance
Brooks Macdonald Group’s strong full-year financial results demonstrate the company’s resilience and ability to navigate challenging market conditions. With a 12.5% increase in underlying profit before tax and a 7% growth in funds under management, Brooks Macdonald has proven its capacity to deliver consistent and sustainable financial performance. The company’s revenue growth of 3.6% further underscores its strong operational capabilities and strategic focus on driving value for shareholders.
Despite facing macroeconomic pressures and elevated outflows, Brooks Macdonald maintained strong performance across its investment strategies. The company’s 19th consecutive annual dividend increase reflects its commitment to delivering shareholder value and rewarding investors for their continued support. By proposing a final dividend of 49p per share, up 4.3% year-on-year, Brooks Macdonald reaffirms its dedication to generating long-term returns for shareholders and sustaining its financial growth trajectory.
Leadership Transition
The appointment of Katherine Jones as Brooks Macdonald’s new chief financial officer represents a key leadership transition for the company. With extensive experience from her previous roles at Phoenix Group and Prudential, Jones brings a wealth of knowledge and expertise to her new position. Her strategic insight and financial acumen will be instrumental in driving Brooks Macdonald’s growth agenda and supporting the company’s strategic initiatives.
As Brooks Macdonald embarks on a new chapter under the leadership of CEO designate Andrea Montague and CFO Katherine Jones, the company is well-positioned to capitalize on emerging opportunities in the wealth management sector. With a focus on redefined strategies and value creation for stakeholders, Brooks Macdonald is poised to achieve sustained growth and deliver superior financial performance in the years ahead.