Interim Results

Brooks Macdonald Group PLC 16 March 2006 CHAIRMAN'S STATEMENT - INTERIM RESULTS BROOKS MACDONALD GROUP PLC I am pleased to report to shareholders an encouraging set of results for the six months ended 31 December 2005. In all three key areas of the business -turnover, profits and funds under management we are ahead of budget. Profit before taxation was £187,000, lower than the corresponding period last year, reflecting a significant investment in new staff and the costs incurred in acquiring new business which will not generate income until the second half of the year. Turnover of £3.4 million was an increase of 26% over the first half of last year, reflecting both stable investment markets and the significant increase in funds under management, which rose to £515 million compared with £412 million at the end of the last financial year. This represents a rise of 25% over the six month period and a rise of 41% over the £363 million funds under management at December 2004. This increase is due to both our fund manager recruitment programme as well as our continued strong organic growth. New business remains buoyant not only in Self Invested Personal Pensions but also in the provision of bespoke portfolio management. We have continued to foster links with a number of professional introducers which is yielding results both in the UK and now also in continental Europe. Increased activity in Financial Consulting reflects further demand for our services in the light of A Day pension legislation. This will continue to be an area of specialisation well beyond April 2006. In addition, we will be looking to expand our Group and Employee Benefits team over the coming months to take advantage of the increasing demand from companies to sub-contract their staff pension responsibilities. We continue to expand our specialist services which are available to clients either as a specific product or as part of a larger portfolio. Our Property service and our Portfolio of Absolute Return Strategies (PARS) were both launched during the last financial year. We introduced our IHT / AiM portfolio service in December and are planning to launch a Managed Portfolio service in April 2006. In the second quarter of 2006 we hope to put in place our first Open Ended Investment Vehicles. With the formation of Brooks Macdonald Services Limited we will be introducing our own in house nominee service. This will begin for new clients in April 2006 and become fully operational during our next financial year. As well as providing full custodian and dealing services this will further enhance our asset management software and client reporting. We are optimistic that with continuing stability in the investment markets we shall see further significant increases in funds under management. Our business model remains robust, in both our Asset Management and Financial Consulting companies, giving us confidence for the financial year as a whole. Christopher Knight Chairman Brooks Macdonald Group plc Consolidated profit and loss account for the six months ended 31 December 2005 Six months ended Six months ended Year ended 31 December 2005 31 December 2004 30 June 2005 Unaudited Unaudited Audited £ £ £ Turnover 3,426,293 2,719,433 5,667,469 Administrative costs (3,406,425) (2,580,460) (5,325,892) ---------- ---------- ---------- 19,868 138,973 341,577 Other operating income 78,615 78,615 159,730 ---------- ---------- ---------- Operating profit 98,483 217,588 501,307 Income from current asset investments - 28 83 Interest receivable 88,588 48,483 120,337 ---------- ---------- ---------- 88,588 48,511 120,420 ---------- ---------- ---------- Profit on ordinary activities before tax 187,071 266,099 621,727 Tax on profit on ordinary activities (56,000) (85,468) (160,645) ---------- ---------- ---------- Profit on ordinary activities after 131,071 180,631 461,082 taxation Dividends payable - - (98,110) Retained profit for the period 131,071 180,631 362,972 =========== ============= =========== Earnings per share Basic 1.34p n/a 5.16p Diluted 1.28p n/a 5.12p Brooks Macdonald Group plc Consolidated balance sheet at 31 December 2005 Six months ended Six months ended Year ended 31 December 2005 31 December 2004 30 June 2005 Unaudited Unaudited Audited £ £ £ Fixed assets Tangible assets 155,130 98,025 118,954 Current assets Debtors 1,638,918 965,877 1,143,784 Investments 18,022 18,047 18,022 Cash at bank and in hand 2,799,366 1,277,245 2,716,227 ---------- ---------- ---------- 4,456,306 2,261,169 3,878,033 Creditors, amounts falling due within one (1,869,651) (1,068,212) (1,360,008) year ---------- ---------- ---------- Net current assets 2,586,655 1,192,957 2,518,025 ---------- ---------- ---------- Total assets less current liabilities 2,741,785 1,290,982 2,636,979 Creditors, amounts falling due after one (32,813) (35,938) (32,813) year Provisions for liabilities and charges (118,500) (110,000) (148,030) ---------- ---------- ---------- Net assets 2,590,472 1,145,044 2,456,136 ========== ========== =========== Capital and reserves Called up share capital 98,131 42,745 98,110 Share premium 1,365,910 289,280 1,362,666 Merger reserve 191,541 191,541 191,541 Profit and loss account 934,890 621,478 803,819 ---------- ---------- ---------- Equity shareholder funds 2,590,472 1,145,044 2,456,136 =========== ========== =========== Brooks Macdonald Group plc Consolidated cash flow statement for the six months ended 31 December 2005 Six months ended Six months ended Year ended 31 December 2005 31 December 2004 30 June 2005 Unaudited Unaudited Audited £ £ £ Net cash inflow from operating activities 152,193 178,149 561,403 Returns on investments and servicing of finance Investment income received - 28 83 Interest received 88,588 48,483 120,337 ---------- ---------- ---------- 88,588 48,511 120,420 Taxation Corporation tax paid 2,146 (85,461) Capital expenditure and financial investment Purchase of plant and equipment (62,797) (27,135) (78,671) Purchase of investments - (6,001) (6,001) ---------- ---------- ---------- (62,797) (33,136) (84,672) Equity dividends paid (98,110) (55,569) (61,358) Financing Increase in share capital 3,265 20,000 1,148,751 ---------- ---------- ---------- 3,265 20,000 1,148,751 ---------- ---------- ---------- Net cash inflow in period 83,139 160,101 1,599,083 ========== ========== ========== Net funds at beginning of period 2,716,227 1,117,144 1,117,144 Net inflow 83,139 160,101 1,599,083 ---------- ---------- ---------- Net funds at end of period 2,799,366 1,277,245 2,716,227 ========== ========== ========== Brooks Macdonald Group plc Notes to the interim results for the period ended 31 December 2005 1 Basis of preparation The accounting policies used in preparing the interim report are as set out in the statutory accounts for the year ended 30 June 2005. The figures for the year ended 30 June 2005 have been extracted from the financial statements for that year, which have been filed with the Registrar of Companies. The auditors' report on those financial statements was unqualified and did not contain any statement under Section 237 (2) or (3) of the Companies Act 1985. 2 Taxation The corporation tax charge is based on the taxable profits at the current rate of 30% 3 Dividends The Board do not recommend the payment of an interim dividend. 4 Earnings per share Basic earnings per share are calculated by dividing Group profits after tax of GBP 131,000 by 9.81m, the weighted average number of ordinary shares in issue over the six months ended 31 December 2005. The resultant earnings per share for the period are 1.34p. This information is provided by RNS The company news service from the London Stock Exchange

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