Trading Statement

RNS Number : 1260N

Brooks Macdonald Group PLC

24 July 2014

 



24 July 2014

BROOKS MACDONALD GROUP PLC

Full Year Trading Update

Quarterly Announcement of Funds under Management

Notice of Results

Brooks Macdonald Group plc (the "Group"), the AIM listed integrated wealth management group, today announces a trading update for its year ended 30 June 2014, together with an update on its funds under management (FUM).

Trading Update

Trading for the year was in line with the Board's expectations and good progress has been made in all areas of the business.

This has been another active year which has featured further organic and acquisition led growth, boosting both FUM and the Group's capabilities and offering, alongside significant investment in systems. We are particularly encouraged by the continued interest from new clients in our core asset management services - the Bespoke Portfolio Service, ('BPS'), Managed Portfolio Service ('MPS') and Funds - driven by our strong intermediary relationships. 

During the year (as previously announced) we acquired an option to buy Levitas Investment Management Services Limited ("Levitas"), which expands our range of risk-adjusted funds and adds further exposure to the pensions market, including auto enrolment. We expect to exercise the option to acquire Levitas imminently. We also entered into a partnership, North Row Capital LLP, which in February launched the IFSL North Row Liquid Property Fund.

In April we also announced the acquisition of a Jersey based wealth management business, DPZ Capital Ltd ("DPZ"), which has further expanded the Group's international business, and is expected to be earnings enhancing in the financial year ending 30 June 2015. Since acquisition the integration process has proceeded according to plan.

Funds under Management

Discretionary

As at 30 June 2014, discretionary funds under management totalled £6.55 billion (30 June 2013: £5.11 billion).

Over the year discretionary funds grew by £1.44 billion (or 28.2%). As a comparison, the WMA Balanced index increased by 6.2% over the year.

Over the last quarter, discretionary funds under management rose by £629 million. This included £363 million as a result of the DPZ acquisition. This was a rise of 10.6% or 4.5% net of DPZ. As a comparison, the WMA Balanced index increased by 1.3% over the quarter.

Included in the above total is Brooks Macdonald Funds, which had funds under management of £518 million at the year end (30 June 2013: £390 million), an increase of 32.8% over the year.

Advisory

As at 30 June 2014 advisory funds under management totalled £456 million (30 June 2013: £348 million). Included in this figure is £58.9 million added with DPZ.

Property assets under administration

The Group's property management business, Braemar Estates, had property assets under administration of £1.13 billion at the year end (30 June 2013: £1.04 billion), an increase of 8.9%, or £93 million.

Third party assets under administration

The Group now has third party assets under administration in excess of £200 million (30 June 2013: £140 million).

Notice of results

The Group intends issuing its results for the year on Wednesday 17 September 2014.

Chris Macdonald, Chief Executive of Brooks Macdonald, commented:

"We have continued to see strong growth in our funds under management during the year, which are up 28% on last year and have now reached £6.55 billion. Progress across the Group has also been highlighted by selective acquisitions to improve the offering of our Funds division, as well as our expanding international presence.

Whilst we continue to invest heavily for future growth, particularly in systems development, and adapt to the changing regulatory landscape, we look forward to making further progress in the new financial year."

Enquiries

Brooks Macdonald Group plc

Chris Macdonald - Chief Executive                                                                               020 7499 6424

Simon Jackson - Finance Director                                                          www.brooksmacdonald.com

Canaccord Genuity Limited (Nominated Adviser & Broker)

Bruce Garrow / Joe Weaving                                                                                       020 7523 8350

MHP Communications

Reg Hoare / Simon Hockridge / Giles Robinson / Charlie Barker                                     020 3128 8100

Notes to editors

Brooks Macdonald Group plc is an AIM listed, integrated, wealth management group. The group consists of six principal companies: Brooks Macdonald Asset Management  Limited, a discretionary asset management business; Brooks Macdonald Funds Limited, a fund management business; Brooks Macdonald Financial Consulting Limited, a financial advisory and employee benefits consultancy; Brooks Macdonald Asset Management (International) Limited, a Jersey and Guernsey based provider of discretionary investment management and stock broking; Brooks Macdonald Retirement Services (International) Limited, a retirement planning services provider and Braemar Estates (Residential) Limited, an estate management company

 

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