Brooks Macdonald expects to make 50 redundancies as part of a ‘streamlining’ of the business.

The firm says the changes, mainly in the admin and IT departments, were responding to “evolving” client and advisor needs and would help to deliver future growth.

Brooks Macdonald says it has identified “a range of opportunities to streamline and remove duplication from core processes - for example, by centralising client account opening and client reporting.”

It revealed the changes, subject to consultation, “will result in a material headcount reduction”, but says “the group's service offering and locations are unaffected by these changes.”

The company expects to save an annualised £4m by axing “c.50” staff as part of the firm’s “continuing focus on cost discipline.” 

The firm expects the cost of the changes to be “up to c.£3m, a non-recurring expense which it intends to exclude from its reported underlying profit.”
 
Brooks Macdonald will release its half year trading update and quarterly announcement of funds under management on 24 January, when it says it will provide further guidance on expected full-year performance “in 2019 and beyond.”
 
Caroline Connellan, chief executive of Brooks Macdonald, said: “As part of the next phase of our strategy, as outlined at our annual results, we are focused on driving medium term margin improvement as well as making Brooks Macdonald easier to deal with for both clients and advisers. 

“The changes we are announcing will make us more responsive to changing client and adviser needs, and help deliver greater value from our future growth.”
 
She added: “We regret the need to make redundancies and those people who leave the business will do so with both our thanks for their contribution and our best wishes.”