Politically-induced volatility caused some clients to lower their expectations for investment returns during the reported period, according to wealth manager Brooks Macdonald's (BRK) chairman, Chris Knight. It was for this reason that the £697m in investment growth was a surprise for some. This was up significantly from £15m in gains the previous year.
Alongside net inflows of £332m, this pushed discretionary funds under management up by almost a fifth year-on-year to £9.3bn. Over the six months, asset growth came in at 12.4 per cent, compared with 7.8 per cent growth in the WMA Balanced Index during the period. Its network of adviser firms has grown to more than 1,000. The wealth manager established two strategic partnerships during the period, including its first international tie-up with UAE financial adviser, Abacus. The plan is to partner with advisers operating in countries where regulators are following a similar path to the Financial Conduct Authority.
Two new multi-asset funds were launched for specific third-party mandates. However, a write-down associated with the acquisition of North Row Capital meant the funds management and property business fell short of breaking even. Management expects it to start producing profit soon.
Analysts at Peel Hunt expect adjusted pre-tax profits of £17.9m for the 12 months to June 2017, giving EPS of 108p (from £15.5m and 92.5p in 2016).
BROOKS MACDONALD (BRK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2,034p | MARKET VALUE: | £279m | |
| TOUCH: | 2,011-2,035p | 12-MONTH HIGH: | 2,072p | LOW: 1,400p |
| DIVIDEND YIELD: | 1.9% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 634p* | NET CASH: | £21m | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 38.7 | 5.48 | 32.4 | 12 |
| 2016 | 45.3 | 8.16 | 48.6 | 15 |
| % change | +17 | +49 | +50 | +25 |
Ex-div: 23 Mar Payment: 21 Apr *Includes intangible assets of £64.9m, or 474p a share | ||||
