Brooks Macdonald Share Discussion Threads

[cambium] 04/5/2010 07:27

For decades, most savers preferred to put their money in the hands of large, well-known institutions. The bigger the bank or insurance company, the safer and more robust it seemed.

Events of the past two years have shown up the flaws in that logic in a brutal fashion. After virtually every major bank in Britain came close to collapse, trust in these organisations has been severely tested. Big is no longer beautiful.

This is bad news for the major players, but good news for smaller, more specialised financial institutions such as Brooks Macdonald (Traded on: AIM, Ticker: BRK).

Solid: Boss Chris Macdonald unveiled profits up by 57 per cent last year
The company was founded in 1991 by Chris Macdonald, then a 30-year-old fund manager who wanted to create a business that really did focus on helping clients rather than just making money out of them.

More...Midas Extra: Share tips (thisismoney.co.uk)
Companies in the news (thisismoney.co.uk)
Market latest (thisismoney.co.uk)

Today, Brooks Macdonald is an Aim-traded fund management and advisory business that deals only with individual private clients. It does not manage money for big institutions, it does not dabble in trading on its own account, it simply looks after people's savings.

This focus has served the company well. It has 3,500 customers and recently announced that assets under management had grown to more than £2 billion.

Almost half of this money is being managed through Self Invested Personal Pensions, which allow people to create their own retirement funds, rather than join an employer's plan or big life insurance company's scheme.

Sipps have become increasingly popular in recent years. Numerous companies have shut down defined benefit pension schemes, which guarantee employees a certain pension when they retire, and replaced them with the uncertainty of a defined contribution scheme.

Many employees would rather take control of their own pensions via Sipps than leave them in such schemes. Other savers are also attracted by the flexibility offered.

This trend has helped Brooks Macdonald weather the financial crisis better than many of its peers. Disgruntled savers have moved their pensions into Sipps managed by Brooks throughout the economic downturn, hoping that the company will create a better pension pot for them in the future.

In the year to June 2009, the company delivered a 57 per cent increase in pre-tax profits to £3.18 million and a 57 per cent increase in the dividend as well, from 3.5p to 5.5p.

This year, brokers forecast profits of more than £5 million and a dividend-of about 7.5p. Further strong growth is expected over the next three to five years.

Whichever party is in power after the General Election, encouraging people to save for the future will be high on the agenda.

The population is growing older and everyone is being urged to take more financial responsibility for their old age.

Brooks Macdonald differs from many asset managers because it is small, specialised and makes sure it sees and listens to all its clients regularly.

The company has consistently outperformed other money managers and Macdonald is confident enough about the future to state publicly that he aims to increase funds under management by 20 per cent a year, even if the stock market is flat.

Midas verdict: At 7271/2p, shares in Brooks Macdonald have done well over the past 12 months, but there is still plenty of potential in the stock.

The company is opening new offices across Britain, it is becoming better known among independent financial advisers and other professional advisers and it intends to acquire other, small fund managers, where appropriate.

There is £10 million of cash on its balance sheet, the company is good at what it does and it operates in a growth industry. Buy.


Read more:

[vraic] 02/5/2010 10:30

Very bullish write up in todays Sunday Mail by Midas.

[cambium] 01/4/2010 10:51

Described as 'stunning' by Collins Stewart analyst Michael O'Brien, interim results from bespoke wealth manager Brooks Macdonald demonstrated the resilience of the expanding group's business model.

For the half to December Brooks, which has consistently grown sales and profits in all market conditions since floating in 2005, nearly doubled pre-tax profits to a better-than-expected £2.47m, on a 70% revenue rise to £16.39m. From earnings per share up 126% to 18.85p, Brooks proposed a maiden half-year dividend of 3p, signalling CEO Chris Macdonald's confidence about prospects.

Amid improving markets, funds under management burgeoned by 34% during the period to more than £1.85bn, boosted by September's acquisition of Lawrence House – the company's first on AIM – as well as success with strategic alliance partners and support from professional introducers. Chris Macdonald said the group's Edinburgh office, opened in September, 'has had an encouraging start' and also highlighted robust growth from the managed portfolio service, designed for smaller portfolios and making a strong contribution to the top line.

Having proven the robustness of its model in all economic weather and boasting a 'clean, ungeared' balance sheet, Brooks is strongly placed to complete further earnings-enhancing acquisitions. 'We are seeing more opportunities than we were six months or a year ago', insists Macdonald.

Upgraded forecasts for the year to June now point to pre-tax profits of £5m, earnings of 36.1p (2009: 22.6p) and a 9p payout.

[cambium] 30/3/2010 08:36

ooh hello, I guess Rensburg woke this one up yippee

[cambium] 23/3/2010 10:43

Discretionary wealth manager Brooks Macdonald Group PLC (BRK) grew its assets under management by 34% while profits almost doubled in the six months to the end of 2009.

The strong results led the group to pay the first dividend since its 2005 listing, of 3p, payable on 31 March.

Pre-tax profits were up 96% to £2.47 million, from £1.26 million at the end of June 2009, while revenues increased by 70% to £16.39 million.

Earnings per share were even more sharply up by 126% to 18.85p.

The rise in discretionary assets from £1.386 billion last June to £1.852 billion at the end of the year, outstripped the rise in the Apcims balanced index, which was up by 13% in the same six month period.

The asset growth also included the completion of the transferral of fund management assets from Lawrence House's Canterbury office, to Brooks' Tunbridge Wells office following Brooks' acquisition in September 2009.

Chief executive Chris Macdonald (pictured) said that a considerable chunk of the strong performance had come from the group's Managed Portfolio Service, designed for smaller portfolios.

[cambium] 16/3/2010 10:28

Investment management and financial services provider Brooks Macdonald Group plc (BRK.L: News ) reported over two-fold rise in profit for the six months ended December 31, 2009. Upbeat on the results, the company declared the payment of maiden interim dividend and said it foresees the business growth to continue in the second half.

Profit for the period attributable to equity holders of the company more than doubled to GBP 1.89 million or 18.14 pence per share from GBP 0.83 million or 8.22 pence pence per share in the previous year.

Profit before taxation climbed 96% to GBP 2.47 million from GBP 1.26 million in the same period a year ago.

Total comprehensive income for the period, which exclude one-time gains, rose to GBP 1.90 million from GBP 0.90 million in the past year.

Revenue for the first-half rose 70% to GBP 16.38 million from GBP 9.65 million in the prior-year period.

The company noted that finance income dipped to GBP 35.92 thousand from GBP 144 thousand a year ago. The latest half-yearly results also included finance costs of GBP 12.39 thousand.

Commenting on the newly opened office in September, chief executive Chris Macdonald, said, "Our Edinburgh office has had an encouraging start, and our strategic alliances have again shown their worth to the Group's growth strategy. We continue to look forward to the future with confidence."

Brooks Macdonald said that discretionary funds under management at the end of the period were GBP 1.85 billion, up 34% from GBP 1.38 billion as on 30 June 2009. The company attributed the increase to improved markets and other factors, including its acquisition of Lawrence House Fund Managers in September and strategic alliance partners.

Further, Brooks Macdonald Group announced that its board declared first-ever interim dividend of 3 pence per share, payable on 31 March 2010 to shareholders of record on 26 March.

Looking ahead, Brooks Macdonald Group expects the growth of the business to continue in the second half of fiscal 2010.

[cambium] 16/3/2010 10:25

Brooks Macdonald Group Plc's six-month pre-tax profit improved 96% to £2.47 million from £1.26 million a year ago. Profit for the period attributable to equity holders of the company amounted to £1.89 million compared with £0.83 million in the previous year.

Earnings per share for the six-month period rose to 18.14 pence from 8.22 pence last year.

Revenue for the six months ended 31 December 2009 was up 70% to £16.38 million from £9.65 million in the comparable period.

[cambium] 16/3/2010 08:20

another great set of results, this is the start of a great company, paying a dividend twice a year, funds under management up 34%, well done BRK

[cambium] 26/2/2010 14:02

Brooks Macdonald's £2.75 million acquisition of Lawrence House could see the wealth manager move into fund management in the future.

Chris Macdonald, co-founder and chief executive of Brooks Macdonald Group, said the integration between the two firms is at an early stage but he was not ruling out fund launches.

He said: 'It may well be the case. We've only taken ownership of the funds this morning and we are going to become much clearer on the strategy.'

By buying Canterbury-based fund manager Lawrence House, Brooks Macdonald also acquired its first open-ended fund, managed by Alan Stokes.

Macdonald said owning funds added another dimension to the firm's business and might offer further opportunities to leverage off its relationship with independent financial advisers. 'It's a new string to our bow. What's highly likely is that we will look to market existing funds,' he said.

These were more likely to be marketed externally since the firm had strong relationships with the top end of the IFA market 'and this could be another opportunity to talk to them,' he added.

Macdonald said the Lawrence House purchase may not be the last, since the company is looking to expand. However, he added: 'We've seen a number of companies but they need to fit.'

This week Brooks Macdonald also opened an office in Edinburgh after headhunting a senior team from Adam & Co Private Bank.

[cambium] 26/2/2010 13:14

Quarterly Announcement of Discretionary Funds Under Management

As at 31 December 2009 funds under management were GBP £1.851bn

As at 30 September 2009 funds under management were £1.665 billion

As at 31 March 2009 funds under management were £1.24 bn

As at Dec 08 funds under management were £1.22bn

As at 30 Sep 08 funds under managment were £1.21bn

As at March 08 funds under managment were £1.082bn

[cambium] 26/2/2010 13:13

Appointment of two Fund Managers



Brooks Macdonald Group plc ("the Group") is pleased to announce the recruitment of two new private client fund managers with immediate effect.



Michael Divers joins the Group from Shore Capital and has eight years experience working with high net worth clients in discretionary portfolio management. Michael will be based in the Group's London office.



James Grayson has joined from Thesis Asset Management. He has seven years experience managing a wide range of private portfolios, trusts, charities and pension schemes. He will be based in the Group's Winchester office.





Chris Macdonald, Chief Executive said:



'We are delighted that both Michael and James have joined us. They are important hires for the Group and bring additional expertise and knowledge to the growing teams in London and Winchester.'

[investinggarden] 22/1/2010 11:30

Reduce recommendation from Growth Company Investor

[verymaryhinge] 20/10/2009 14:56

Rathbones deal with Lloyds at 3.4% of FuM equates to approx £5.78 valn on most refcent FuM announced from BRK.

[jakleeds] 16/10/2009 19:41

Unbelievable how quiet this is.

[verymaryhinge] 08/10/2009 07:27

fantastic performance from this company, and no mention of it at all ..anywhere.

[investinggarden] 22/7/2009 09:21

Add recommendation from Growth Company Investor

[holgerl] 15/12/2006 11:21

Please list 52 week highs here daily.


To start off

UVS

[belissimo1] 09/11/2001 12:41

Gravy
I would like to change mine too. If you kindly give me their address or phone no. I'll be grateful.
My e-mail address
[e-mail]

[binghall] 09/11/2001 11:18

Sure,
Try Hargreaves Lansdown (www.h-l.co.uk). Importantly, their customer service is excellent and the icing on the cake is the maximum charge you will pay is a flat £9-95 (+ Stamp Duty on a purchase), with £4-95 for the first 30 days. They nearly always beat the quote on buys and sells, and your cash is linked to an instant access Bank of Scotland High Int A/C, with a cheque book. You have immediate access to your funds i.e. as soon as you sell the funds are available to reinvest.
Site also has free tipsheets, broker views, etc. I have been a client of their's for over 10 years and have never had a complaint. When I did have trouble with the speed of the service on one particular day, they phoned and e-mailed me within 15 minutes to sort it out. Visit the site and look at the 'What we offer' section.

Bing

[maxchilly] 09/11/2001 11:14

Many apologies, everyone! The broker is www.comdirect.co.uk . Very pleased with their service so far (but they have 'bought' me , I suppose!). To get the cash incentive, I believe you have to be introduced to them by an existing customer (I was!), but still great brokers WITHOUT the free cash!

MAx

[e-mail]