Brooks Macdonald Group PLC Trading Update (7970V)

TIDMBRK

RNS Number : 7970V

Brooks Macdonald Group PLC

26 July 2018

26 July 2018

BROOKS MACDONALD GROUP PLC

Year End Trading Update

Quarterly Announcement of Funds under Management

Notice of Results

"Continued strong organic growth,

ending the year with record discretionary FUM of GBP12.4bn"

Brooks Macdonald Group plc (the "Group"), the AIM listed investment management group, today publishes a trading update for its financial year ended 30 June 2018, together with a quarterly update on its Discretionary Funds Under Management for the fourth quarter.

Trading Update

-- Growth momentum maintained in the final quarter, ending the financial year with record discretionary FUM of GBP12.4 billion, an increase of 18.7% over the year and 6.5% over the quarter. Highlights included:

o Strong net new business of 13.1% in the year and continuing robust investment performance

o UK Investment Management generated particularly strong flows across both BPS (+16.5%) and platform MPS (+36.5%)

o BMI reported net new business up from 1.3% in FY17 to 6.4% this year.

-- Continued investment both to meet current and future regulatory demands, such as MiFID II, GDPR and SMCR, and to enhance functional capabilities, focusing on our risk management and operational framework.

-- Focus maintained on operating margin, reflecting both material revenue growth and continued cost discipline.

Quarterly Funds Under Management

As at 30 June 2018, discretionary FUM totalled GBP12.4 billion (30 June 2017: GBP10.5 billion).

Over the year, FUM grew by GBP1,959 million (18.7%). Of this, 13.1% was net new business and 5.7% was investment performance. As a comparison, the MSCI WMA Private Investor Balanced Index grew by 4.2% over the year.

In the fourth quarter, FUM rose by GBP756 million, an increase of 6.5% over the quarter (31 March 2018: GBP11.7 billion). In the same period, the MSCI WMA Private Investor Balanced Index increased by 4.5%.

The quarterly result was driven by net new business (+GBP214m), and investment performance (+GBP542m) over the period.

Analysis of discretionary fund flows over the quarter and year

 
                       Quarter to 30 June2018       Year to 30 June 2018 
                    ---------------------------  -------------------------- 
 
   GBPm                UK IM     BMI      TOTAL     UK IM     BMI     TOTAL 
------------------  --------           --------  --------  ------  -------- 
 Opening FUM          10,037    1,621    11,659     8,927   1,529    10,456 
------------------  --------  -------  --------  --------  ------  -------- 
 Net new business        217      (3)       214     1,267      98     1,365 
------------------  --------  -------  --------  --------  ------  -------- 
 Performance             468       74       542       528      66       594 
------------------  --------  -------  --------  --------  ------  -------- 
 Closing FUM          10,722    1,693    12,414    10,722   1,693    12,414 
------------------  --------  -------  --------  --------  ------  -------- 
 Organic growth         2.1%   (0.2%)      1.8%     14.2%    6.4%     13.1% 
------------------  --------  -------  --------  --------  ------  -------- 
 Total growth           6.8%     4.4%      6.5%     20.1%   10.7%     18.7% 
                    --------  -------  --------  --------  ------  -------- 
 

Caroline Connellan, Chief Executive of Brooks Macdonald Group commented:

"I am pleased to report that a solid final quarter completes another year of impressive FUM growth for Brooks Macdonald. While markets have fluctuated over the second half of our financial year, we have again generated strong net new business and delivered robust investment performance. Our organic growth has been largely driven by the depth of the relationships we have built with our clients and the advisers who support us. This, combined with rigorous cost discipline, will enable us to deliver sustainable growth and improved operating margins in the medium term."

Notice of results

The Group intends to issue its results for the year to 30 June 2018 on Thursday 20 September 2018.

Enquiries to:

 
 Brooks Macdonald Group plc                       www.brooksmacdonald.com 
  Caroline Connellan, Chief Executive                       020 7499 6424 
 Peel Hunt LLP (Nominated Adviser and Broker) 
  Guy Wiehahn / Adrian Haxby                                020 7418 8900 
 MHP Communications 
  Reg Hoare / Simon Hockridge / Charlie Barker              020 3128 8540 
 

Notes to editors

Brooks Macdonald Group plc, through its various subsidiaries, provides leading investment management services in the UK and internationally. The Group, which was founded in 1991 and began trading on AIM in 2005, had discretionary funds under management (FUM) of GBP12.4bn as at 30 June 2018.

Brooks Macdonald offers a range of investment management services to private high net worth individuals, pension funds, institutions, charities and trusts. The Group also provides financial planning as well as offshore investment management and acts as fund manager to regulated OEICs providing specialist funds in the property and structured return sectors.

The Group has twelve offices across the UK and the Channel Islands including London, Hampshire, Leamington Spa, Manchester, Taunton, Tunbridge Wells, York, Scotland, Wales, Jersey, and Guernsey.

LEI: 213800WRDF8LB8MIEX37

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