Wealth management group Brooks Macdonald continues to build on its record of delivering strong growth by boosting profits, funds under management and rewarding shareholders with a hefty dividend hike.
Total discretionary funds under management grew by 19 per cent to £3.52bn in the financial year to June which was impressive given the 2 per cent fall in the APCIMS Balanced index over the same period. This reflected winning more business through professional intermediaries such as independent financial advisers, and greater demand from self-invested pensions plans (Sipps). The group also attracted more clients for its managed portfolio service designed to cater for clients with smaller investment portfolios. And property assets under administration managed by Braemar Estates incresaed 15 per cent to £865m.
The acquisition of the investment management business of Clarke Willmott added funds of £114m, and since the year-end Brooks Macdonald has acquired Park Street London, a long-term introducer of funds and clients to the business.
Analysts at Numis are forecasting current year pre-tax profits of £11.7m and EPS of 74.8p (2012: £8.5m and 57.9p), rising to £13.6m and 84.6p, the year after.
| BROOKS MACDONALD (BRK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,305p | MARKET VALUE: | £141m | |
| TOUCH: | 1,280-1,330p | 12-MONTH HIGH: | 1,375p | LOW: 990p |
| DIVIDEND YIELD: | 1.4% | PE RATIO: | 23 | |
| NET ASSET VALUE: | 220p* | NET CASH: | £13.5m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 16.8 | 2.03 | 12.4 | 3.5 |
| 2009 | 21.8 | 3.19 | 22.6 | 5.5 |
| 2010 | 35.1 | 5.68 | 38.1 | 9.0 |
| 2011 | 52.2 | 7.29 | 51.9 | 15.0 |
| 2012 | 53.3 | 8.52 | 57.9 | 18.5 |
| % change | +2 | +17 | +12 | +23 |
Ex-div: 19 Sep Payment: 24 Oct *Includes intangible assets of £10.4m, or 97p a share | ||||
