Brooks Macdonald Share Discussion Threads

[verymaryhinge] 24/9/2010 14:26

the shares you would sell would not have been bought at 9 either..

u mean a 2 for 1 stock split then ?

i imagine the options were granted at the price at the time of the grant.. they have just exercised them. They are part of the managers compensation. - You can vote agaginst it if you like, as a shareholder.. I am OK with it :- Are you creating any value at BM ? nope - are they.. oh yes.

If a company sold shares to new holders - diluting my holding, and then paid it out to shareholders as a divi - I would exit that company before you could say jack rabbit..

[darias] 24/9/2010 14:12

A 2 for one dilution does not actually dilute the value of anyone's shares but makes the shares more liquid.

A placing where money raised is paid out as a special dividend or offered to existing shareholders does not dilute the company's value. A placing raises 500m then the company has 500m of extra funds. This does not reduce the value of my holding and if an increased dividend was paid it is likely to even raise the share price.

The value of my holding has dropped because of the daft RNS. I accept that they can sell to realise the value of their assets it is the hypocrisy that I object to. Your share of the business on release of the RNS has fallen o.6% since the announcement.

Besides the shares they sold were not bought at £9 the price on offer to me and you but as an exercise of options at a substantially discounted price.

[verymaryhinge] 24/9/2010 09:16

why would you want to be diluted ? - You too can sell your shares to satisfy instiutional, or other demand - you just have to do it through a market maker.

If you had substantial capital tied up in a stock which had gone up 10 fold, you'd be mad to not take some of the table from time to time (perhaps to buy a house, or a car or pay school fee's..) - and bear in mind they are they guys and girls workinhg hard to make you richer..

They will have been approached by institutions - existing or new - and I for one am more than happy that the directors of the business are making me as an (part) owner of the business, wealthier. I would be angry of they diluted MY share of the business... and issued themselves options to avoid their own dilution.

[darias] 24/9/2010 09:04

I dont know why but I am furious at the way we, as shareholders, are treated as fools.

If there is a problem of liquidity which is implied in the news release. Why not do a placing and then pay out a special dividend? Why not do a two for one dilution?

No we sold our shares to satisfy institutional investors. DUH

[darias] 24/9/2010 09:00

Its good of the directors to think that the institurional investors need a leg up to buy their stock however why should the private investors be shafted in this fashion?

Its the hypocrisy that gets me - they dont write "we sold our shares in order to take a bit of profit out of the recent gains in price"

Instead we get,

"certain directors sold an aggregate 246,171 ordinary shares of 1p
each in the Company ("Ordinary Shares") to satisfy demand from institutional
investors."

HUMBUG

[nellie1973] 16/9/2010 16:54

Tipped in press today as a buy

[cambium] 16/9/2010 12:38

half the mkt cap in cash to although some of it owing to the companies that it bought out, although it did say that it would pay for that thru cash flow and current banking facilities.

Def on the watchlist imo

[jakleeds] 16/9/2010 12:27

Also take a look at STM, similar sector, really good results and started paying a dividend.

[cambium] 16/9/2010 12:25

Brooks Macdonald Group plc (BRK.L: News ) announced its final results for the year ended 30 June 2010.

Profit for the year was £3.86 million, compared to £2.25 million last year. Earnings per share rose to 36.31 pence from 22.26 pence a year ago.

Profit before taxation for the year rose to £5.68 million from £3.18 million in the prior year.

Funds under management surged 57% to £2.186 billion from £1.386 billion last year.

Revenue for the year was £35.11 million, up from £21.75 million in the previous year.

The Board recommended final dividend of 6 pence per share, payable on 25 October, to shareholders on the register on 24 September 2010.

Commenting on the results, Chris Macdonald, CEO, said, "The year under review has seen significant progress across the group: substantial milestones such as £2 billion FUM have been passed, with all growth strategies demonstrating progress. Organic growth fuelled by office openings and new strategic alliances with professional introducers has been a key driver, but has been complemented by the acquisition of Lawrence House during the year and of Braemar Group post year end." "Alongside strong financial performance the group has continued to invest in infrastructure and employees to ensure that we continue to deliver high levels of service and performance to our clients. We are well placed for the rest of the current calendar year and beyond, he added

[verymaryhinge] 16/9/2010 08:37

at north of 3% of AUM, it's hard to see what re-rating can occur..

[nephie] 15/9/2010 11:54

outstanding results, rerating from here I think

[m.t.glass] 15/9/2010 07:47

Revenue - Up 61%
Pre-tax profits - Up 78%
Basic earnings per share - Up 69%
Funds under management - Up 57%
Total proposed dividend for the year - Up 64%

[darias] 09/9/2010 08:36

It was really only that they had been shrewd enough to take out Braemar, which we had made a fair gain on in only two months. On purchasing Braemar they had taken over the fund to invest in farmland. (This was our reason for investing in Braemar).

The share price had risen like a rocket since coming to market especially in the last 2 years without any significant selling illustrating a support price. I highlighted the July news release stating that profits would be ahead of expectation and they are paying a dividend. Funds under management 2.1b compared with 1.8b and 1.3b in last six months/year.

Since purchasing I have carried out some further research and note that they reported 3500 customers who are clearly high wealth so I calculate that these customers have a mean average of 600,000 invested in their pension funds. It has been demonstrated that the big fund managers cannot do the business so why not run with the small fund managers who seem to be making a better fist of it.

I did express concern that they do not issue much in the way of news and this may be a big Ponzi scheme but there you go. It is clear that the astronomic rise in the last two years means that there may not be much further to go. However if they do not issue a reason for any weakness in share price that may come about it may be a case of adding on weakness.

[cambium] 09/9/2010 07:54

feel free to shed any light with your presentation here Darius, it would be greatly appreciated, welcome aboard

[darias] 08/9/2010 08:37

I must have made a good presentation yesterday as it is one of the few occasions that the club have voted unanimously to buy a stock.

This is especially cheering as the meeting was well attended.

We are in.

[cambium] 23/8/2010 16:26

absolutely stunning day.

[cambium] 18/8/2010 22:53

another corking day with recent highs yipppeee

[cambium] 17/8/2010 16:48

afternoon MT

[m.t.glass] 17/8/2010 16:29

Another strong upkick. Results a month away.

[cambium] 15/7/2010 18:20

Brooks Macdonald jumps 7% on forecast busting trading updateFTSE 100FTSE 250FTSE 350.FTSE 100 -42.23 (-0.80%)
to 5211.29


FTSE 250 -43.16 (-0.44%) to 9852.45

FTSE 350 -20.93 (-0.76%) to 2751.01
.Click here for
FTSE charts and share prices

by Drazen Jorgic on Jul 14, 2010 at 11:11


The share price of Brooks Macdonald Group jumped more than 7% after the company put out an optimistic trading statement.

Brooks Macdonald share price has more than trebled over the past 18 months. Its first quarter results were extremely strong, with revenue, pre-tax profits and earnings per share all sharply higher. The company also begun paying dividends for the first time.

A statement released this morning reported this trend had continued. 'The group has benefited throughout the period from an encouraging and continuing inflow of new business. The group's results to 30 June 2010 will be ahead of market expectations.'

Collins Stewart was also optimistic about the future earnings for the wealth manager as it reiterated its 'buy' rating on the firm. The broker estimated that the company's assets under management, set to be announced next week, will go through the £2 billion barrier to roughly £2.15 billion, representing a 55% rise over the twelve months.

Brooks Macdonald group, which operates an investment management and financial planning arms, recentlyacquired property specialist Braemar and has made a string of hires.

Amongst the most recent fund manager hires were Colin Barrett, previously of Heartwood Wealth Management, for its Tunbridge Wells office. It has also boosted the Edinburgh branch with the hire of Scott Lothian from Adam & Co.

Collins Stewart said the Bramear acquisition will not bring material benefits in the next 12 months but should be beneficial over the longer-term. It added that the company will focus on organic growth this year while its balance sheet remains strong.

'We anticipate further cash generation in 10/11 which will support continued dividend growth.'

At 9.45am, Brooks Macdonald shares were up 7.10%, or 55p, to 830p.

[cambium] 15/7/2010 15:52

Brooks Macdonald Group plc ("the Group"), the AIM listed integrated wealth
management group, today announces that the strong trading highlighted at the
time of its interim results announcement in March has continued into the second
half of this financial year.

The Group has benefited throughout the period from an encouraging and continuing
inflow of new business. The Group's results to 30 June 2010 will be ahead of
market expectations.

The Group expects to announce its final results for the year ended 30 June 2010
on 15 September 2010 and will publish its latest funds under management
statement later this week.

[campbed] 14/7/2010 08:57

Trading update today says results for y/e 30 june should be ahead of market expectations which were for an eps of 36.1p

[cambium] 21/6/2010 08:23

Brooks Macdonald Group has recruited private client fund manager Scott Lothian from rival Edinburgh firm Adam Investment Management.

Lothian's hire is the latest stage of Brookes' aggressive expansion plans in the city, and comes a week after it announced it was set to acquire property specialist Braemar Group.

Chief executive Chris Macdonald (pictured) said: 'Scott is an important addition to both Brooks Macdonald Group and the Edinburgh office. He will add significant strength to the existing fund management team and additional knowledge of the local market.'

[cambium] 04/5/2010 08:27

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 11:30

Very bullish write up in todays Sunday Mail by Midas.