Brooks Macdonald Share Discussion Threads

[edmonda] 14/4/2022 07:23

Amidst significant market volatility - which often coincides with net outflows for asset and wealth managers - Brooks Macdonald impressively recorded £0.2bn of net Funds Under Management (FUM) inflows during Q3 of FY22 (Jan - Mar 22). This was its fourth consecutive quarter of positive net flows, and indicative of continuing strong momentum in the business. We have made a small ‘mark to market’ adjustment to our forecasts (FY22 estimate reduces from £17.2bn to £17.1bn, FY23 from £18.8bn to £18.7bn), but remain confident that BM is well placed to achieve its longer-term ambitions (reaching £26-£27bn FUM in the next 5-6 years, excluding acquisitions) and highlight that our fundamental value is 3,200p per share (29% above the current share price), while BM’s PER of 19.8 is 23% below the sector median of 25.7. https://www.equitydevelopment.co.uk/research/fum-inflow-momentum-continues-in-turbulent-markets

[c3479z] 31/3/2022 22:26

rising on the brewin dolphin takeover?

[wad collector] 31/3/2022 13:55

Certainly been a good share price recovery since the HY figures came out.

[edmonda] 10/3/2022 08:11

#BRK We initiate today on Brooks Macdonald. Prospects for revenue and profitability growth look encouraging as we examine a number of key factors including: Management's ambitious organic and acquisitive growth plans. BM is operating in a huge market with substantial medium-to-long-term tailwinds. It has a track record of delivering superior investment returns, which is one of the most important factors used by financial advisers when selecting an investment manager. FUM growth has been solid in recent years (12% CAGR over 4-5 years), fueled mainly by investment performance and attractive-looking acquisitions, with quarterly flows accelerating sharply over the last 18 months, and expected to contribute more to FUM growth in the future. It is in the final stages of completing a multi-year re-engineering of operational processes and technology. Benefits are already being realised but a platform for scalability has been created, with the potential to increase profit margins as the business grows. Funds under management (FUM) totalled £17.3bn on 31 Dec 21 and in its last full financial year (FY21 to 30 Jun 21) BM’s revenue was £118m (up 8.8% on FY20: £109m) and underlying PBT was £30.6m (up 32.5% on FY20: £23.1), which is evidence of operational leverage kicking in. Based on its growth ambitions (reaching £26-£27bn FUM in the next 5-6 years, excluding growth from acquisitions) and the potential for further operational leverage, our fundamental DCF valuation is 3,250p per share, 49% above the current price (although this gap has widened with recent equity market falls). In addition, BM’s PER of 17.4 is 30% below the sector median of 24.7. https://www.equitydevelopment.co.uk/research/ambitious-growth-strategy-builds-on-30-year-track-record

[km18] 08/2/2022 17:19

...from a while ago... Brooks MacDonald issued solid final results for the 12 months to 30th June, 2021. Group FUM reached a record level of £16.5 billion (up 20.3% on FY20), Group revenue was up 8.8% to £118.2 million, underlying profit margin was up by 4.7 points to 25.9%, in line with the Group's commitment to deliver top quartile margin over the medium term, investment performance was strong at 15.8% for the year and the total dividend increased by 18.9% to 63.0p (FY20: 53.0p) reflecting the Board's confidence in the Group's prospects. Generally solid all round performance. Valuation is also reasonable on a forward PE ratio of 13, top third for the sector. BRK is certainly not as dynamic as some of its competitors in the investment management arena, but it is still a solid company at a reasonable price going in the right direction and not a bad small-cap financial name to hold in a portfolio. It also pays a 3%+ dividend yield. BUY....from WealthOracleAM https://wealthoracle.co.uk/detailed-result-full/BRK/143

[wad collector] 17/10/2021 10:05

Even bigger BUY recommendation in IC this week @ 2510 , thinks it will be a winner in the battle of the wealth managers.

[boydduk] 09/10/2021 10:06

Looking at the wider market this has been one of my performers of late

[wad collector] 28/9/2021 22:45

Buy tip in IC this week @2386 , pointing out prospective consensus EPS of 178p next year.

[boydduk] 16/9/2021 09:23

Well I can't say I didn't hope for a better reaction on the share price to those results

[wad collector] 27/8/2021 11:44

The BB certainly doesn't share enthusiasm either! Quietly growing share price

[boydduk] 11/3/2021 08:12

Still the market doesn't really share the enthusiasm it appears

[boydduk] 09/3/2021 16:05

Hopefully will get some clarity on where this is going shortly.

[boydduk] 12/11/2020 10:19

Is Mr Market finally waking up?

[boydduk] 17/9/2020 09:15

You could hear a pin drop. Still I will take a company in strong enough position to be increasing its Divi right now

[saucepan] 28/7/2020 16:32

Hi Folks. A quiet thread. I bought in here in two tranches, yesterday and today. Some attractive fundamentals, e.g: No debt; ROCE 19.2; Forecast eps growth 177%; 2022 forecast P/E of 10.9; divi paying. I rather like the current momentum, hoping it will take it back to test highs in fairly short order.

[spooky] 24/6/2020 20:05

Great acquisition IMO.

[tomps2] 24/6/2020 17:45

BRK announced the acquisition of Lloyds Bank International's Channel Islands wealth management and funds business, 24.6.20. Here, Caroline Connellan, CEO, Andrew Shepherd, CEO of Brooks Macdonald International, and Ben Thorpe, Group Finance Director, outline the highlights of the acquisition, the strategy, the fit and the financial benefits. (In a meeting given to analysts 24.6.20). Https://www.piworld.co.uk/2020/06/24/brooks-macdonald-brk-acquisition-of-lloyds-bank-internationals-offshore-wealth-management-funds/ Material benefits include: - Increase in the Group's pro forma funds under management by up to c.8 per cent to over £13 billion - Expected to be accretive to underlying EPS in the year of acquisition (12 months ending 30 June 2021), with full year accretion of an estimated 8-10 per cent in the Group's first financial year following completion (12 months ending 30 June 2022). - Consideration representing an estimated post restructuring P/E multiple of 4.5 times in the first full year following completion, on a pro forma basis - Acquisition funded from existing cash resources. Https://www.investegate.co.uk/brooks-macdonald-grp--brk-/rns/acquisition/202006240700068606Q/

[elmfield] 29/8/2018 12:31

Ok, 👍

[mw8156] 29/8/2018 12:17

seems that questor in the Telegraph has mentioned it...

[elmfield] 29/8/2018 12:00

Take off, Fasten seat belts?

[elmfield] 26/7/2018 07:23

Any views on trading update?😀

[steptoe57] 14/3/2018 13:22

Hi Mad thanks for the info, I hope you make progress and get a decent reward. I thought I read somewhere that Brooks did not think they had a legal obligation for the losses, so to go from a 10% offer to full recovery would be some ask. Just as a reference account holders at Beaufort Securities are liable for a 10-15% hair cut due to the liquidation even thou their funds were held in a separate envelope I believe.