Final Results

Brooks Macdonald Group PLC 16 September 2005 BROOKS MACDONALD GROUP PLC FINAL RESULTS Brooks Macdonald Group plc is an integrated private client discretionary asset management and financial advisory group. Financial and business highlights • Pre tax profit of GBP 621,000 • Pre tax profit up by over 39% • Turnover up from GBP 4.89million to GBP 5.67 million, a rise of 16% • Discretionary funds under management up from GBP 332.4 million to GBP 411.9 million a rise of 23% • Maiden dividend of 1p per share proposed Chris Macdonald, Chief Executive, said: 'All members of the board of Brooks Macdonald Group plc join me in believing that the prospects for the Group remain strong. Demand in the high net worth client market for a quality fee based service continues to increase. We will continue to grow organically but in addition look to recruit high quality individuals to join both existing asset management and financial consulting teams. This, together with a number of additional services we plan to offer, and the expected growth in the SIPP market, leaves the Group in good stead for the current year and beyond' Enquiries Chris Macdonald Chief Executive Simon Jackson Finance Director chris.macdonald@brooksmacdonald.com simon.jackson@brooksmacdonald.com CHAIRMAN'S STATEMENT The admission of Brooks Macdonald Group plc's shares to trading on AiM in March 2005 had several objectives: to raise our profile; to fund our continuing expansion; and to enable more of our staff to become investors in the company. We were delighted by the reception the listing received, and welcome all those who have become shareholders. In the 2004-05 financial year turnover rose from £4.89million to £5.67million, a rise of 16%, pre-tax profits rose by 39% and discretionary funds under management rose from £332.4million to £411.9million, a rise of 23%. The Board has decided to pay the first dividend of the company of 1p per ordinary share. Over the last year we have grown funds under management through a combination of strong investment performance and new business, particularly in the area of Self Invested Personal Pension (SIPPs). This continues to be a major area of growth for the company and where the synergies of a private client asset manager and a fee based financial consulting practice come to the fore. In January 2005 we appointed an intermediary sales manager to further foster links with the IFA community, to whose clients we offer both portfolio fund management and the management of SIPPs. Recruitment, both of individuals and of teams, forms a major part of our expansion strategy. In April this year we opened an office near Winchester, our first office outside London, with a staff of five. All of the establishment costs of this office have been absorbed within our 2004-05 profit and loss account. Since the end of the financial year we have recruited two senior fund managers to join the asset management team in London. Both individuals have acted for substantial client banks historically and bring considerable investment experience in new sectors to our existing fund management team. We plan to recruit further experienced fund managers during the current financial year. In financial consulting during the year we have recruited three senior consultants who are specialists in the pension and mortgage sectors of the business. Following the depolarisation required by the FSA and with the advent of A Day these individuals allow further growth in these specialised sectors. As well as continuing to provide a high quality bespoke fund management and financial consulting service to high net worth individuals we will continue to expand our specialist services which are available to our clients either as a distinct service or as part of a larger portfolio. In the last financial year we launched our Portfolio of Absolute Return Strategies (PARS), we have recently launched a property service, and a managed portfolio and an IHT/AiM portfolio service are planned. Your board is confident that Brooks Macdonald is well positioned to continue to grow its funds under management and its profitability. That confidence is in large measure based on the expertise, hard work and enthusiasm of our colleagues, in both the asset management and financial consulting companies, to whom we give our thanks. Christopher Knight Chairman Brooks Macdonald Group plc Consolidated Profit and Loss Account For the year ended 30 June 2005 2005 2004 ______________________ _______________________ £ £ £ £ Turnover 5,667,469 4,886,887 Administrative costs (5,325,892) (4,689,581) 341,577 197,306 Other operating income 159,730 159,730 Operating profit 501,307 357,036 Income from current asset 83 388 investments Interest receivable 120,337 87,207 120,420 87,595 Profit on ordinary activities 621,727 444,631 before taxation Tax on profit on ordinary (160,645) (99,316) activities Profit on ordinary activities 461,082 345,315 after taxation Dividends payable (98,110) (55,569) Retained profit for the year 362,972 289,746 ====== ====== Earnings per share Basic 5.16p - Diluted 5.12p - None of the group's activities was acquired or discontinued during the above two financial years. The group has no recognised gains or losses other than the profit for the above two financial years. Brooks Macdonald Group plc Consolidated Balance Sheet as at 30 June 2005 2005 2004 ____________________ ______________________ £ £ £ £ Fixed assets Tangible assets 118,954 99,888 Current assets Debtors 1,143,784 949,961 Investments 18,022 11,963 Cash at bank and in hand 2,716,227 1,119,711 3,878,033 2,081,635 Creditors, amounts falling due within (1,360,008) (1,068,088) one year Net current assets 2,518,025 1,013,547 Total assets less current liabilities 2,636,979 1,113,435 Creditors, amounts falling due after (32,813) (39,063) more than one year Provisions for liabilities and charges (148,030) (129,959) Net assets 2,456,136 944,413 ======= ====== Financed by: Capital and reserves Called up share capital 98,110 42,585 Share premium 1,362,666 269,440 Merger reserve 191,541 191,541 Profit and loss account 803,819 440,847 Equity shareholders funds 2,456,136 944,413 Brooks Macdonald Group plc Group Cash Flow Statement For the year ended 30 June 2005 2005 2004 ____________________ ______________________ £ £ £ £ Net cash inflow from operating 561,403 590,641 activities Returns on investments and servicing of finance Investments income received 83 388 Interest received 120,337 87,207 120,420 87,595 Taxation Corporation tax paid (85,461) 2,815 Capital expenditure and financial investment Purchase of plant and equipment (78,671) (39,266) Purchase of investments (6,001) (12,026) (84,672) (51,292) Equity dividends paid (61,358) - Financing Increase in share capital 1,148,751 271,900 1,148,751 271,900 Net cash inflow in year 1,599,083 901,659 ======= ====== Net funds at beginning of year 1,117,144 215,485 Net inflow 1,599,083 901,659 Net funds at end of year 2,716,227 1,117,144 ======= ======= Brooks Macdonald Group plc Note 1 Basis of accounting and preparation The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards. The principal accounting policies of the group have remained unchanged from the previous year and are set out below. On 28 January 2004, the company acquired 100% of the issued ordinary share capital of Brooks Macdonald Financial Consulting Limited by means of a share for share exchange as part of a group reorganisation. The group has used merger accounting to account for the group reconstruction effected by the acquisition by the company of the interest in Brooks Macdonald Financial Consulting Limited and its subsidiary company. The financial statements are therefore presented as if Brooks Macdonald Financial Consulting Limited and its subsidiary had been owned and controlled by the group throughout the comparable year. Note 2 Earnings per share Basic earnings per share are calculated by dividing the Group profits after tax of GBP 461,000 by 8.94m, the weighted average number of ordinary shares in issue over the year ended 30 June 2005. The resultant earnings per share for the year are 5.16p Note 3 Statutory accounts The financial information set out above does not constitute the Group's statutory information for the year ended 30 June 2005 but is derived from those accounts. Statutory accounts for the year will be delivered to the Registrar of Companies following the Company's annual general meeting. The auditors have reported on these accounts, their reports were unqualified and did not contain statements under the Companies Act 1985, s237 (2) or (3). This information is provided by RNS The company news service from the London Stock Exchange

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