Proposed efficiency improvements
10 January 2019
BROOKS MACDONALD GROUP PLC
Streamlining and simplifying our business
Efficiency improvements to drive increased margins in the medium-term
Brooks Macdonald Group plc (the "Group"), the AIM listed investment management group, today announces proposed efficiency improvements, predominantly in administration and IT areas.
As announced with the Group's annual results in September 2018, a key strategic priority is driving effectiveness and efficiency in the business, improving processes and building a scalable operating model to support future growth and deliver medium-term margin improvement. The measures announced today are a material step in delivering that commitment.
The proposed changes will help the Group respond to clients' and advisers' evolving needs, positioning it to deliver an improved, more consistent client experience and make it easier for advisers to do business with the firm. The Group has identified a range of opportunities to streamline and remove duplication from core processes - for example, by centralising client account opening and client reporting.
The changes will result in a material headcount reduction, predominantly in administration and IT areas. The Group is today informing staff of its proposals, which will be subject to consultation. The Group's service offering and locations are unaffected by these changes.
The actions are expected to result in a net headcount reduction of c.50 and an annualised cost reduction of c.£4m, incremental to the impact of the Group's continuing focus on cost discipline. The Group expects the cost of the changes to be up to c.£3m, a non-recurring expense which it intends to exclude from its reported underlying profit.
The Group will release its Half Year Trading Update and Quarterly Announcement of Funds Under Management on 24 January 2019, when it will provide further guidance on expected performance in FY19 and beyond.
Caroline Connellan, Chief Executive of Brooks Macdonald commented:
"As part of the next phase of our strategy, as outlined at our annual results, we are focussed on driving medium term margin improvement as well as making Brooks Macdonald easier to deal with for both clients and advisers. The changes we are announcing will make us more responsive to changing client and adviser needs, and help deliver greater value from our future growth.
"We regret the need to make redundancies and those people who leave the business will do so with both our thanks for their contribution and our best wishes."
This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR").
Enquiries to:
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Brooks Macdonald Group plc Caroline Connellan, Chief Executive |
020 7499 6424
|
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Peel Hunt LLP (Nominated Adviser and Broker) Guy Wiehahn / Adrian Haxby |
020 7418 8900 |
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MHP Communications Reg Hoare / Simon Hockridge / Charlie Barker
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020 3128 8540 |
Notes to editors
Brooks Macdonald Group plc, through its various subsidiaries, provides leading investment management services in the UK and internationally. The Group, which was founded in 1991 and began trading on AIM in 2005, had discretionary funds under management (FUM) of £12.8bn as at 30 September 2018.
Brooks Macdonald offers a range of investment management services to private high net worth individuals, pension funds, institutions, charities and trusts. The Group also provides financial planning as well as offshore investment management and acts as fund manager to regulated OEICs providing specialist funds in the property and structured return sectors.
The Group has thirteen offices across the UK and the Channel Islands including London, East Anglia, Hampshire, Leamington Spa, Manchester, Taunton, Tunbridge Wells, York, Scotland, Wales, Jersey, and Guernsey.
LEI: 213800WRDF8LB8MIEX37
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