Thursday, 10 March 2022 08:19
Funds rise 60% at Brooks Macdonald discretionary arm
Funds under management rose 60% for Brooks Macdonald Investment Solutions (BMIS) in the six months ending 31 December.
BMIS is Brooks’ discretionary offering for advisers.
The wealth manager’s platform-managed portfolio service saw a 20% rise in funds under management.
The discretionary businesses had annualised net flows of 6.3% got the period.
Total funds under management for Brooks Macdonald reached £173.bn, up 5.3% over the six months ending 31 December.
The wealth manager saw net flows turn positive as they rose to £326m after reporting net outflows in the same period the previous year (H1 2021: outflows of £367m). Annualised net flows rose 4.7%.
Revenue increased by 10.7% to £61.9m (H1 2021: £55.9m) driven by the positive net flows and a complete half year contribution from the acquisition of Lloyds Banking Group’s Channel Islands funds and wealth management business.
Underlying profit before tax rose 25.7% to £17.6m (H1 2021: £14m) with underlying profit margin rising 3.3% to a record high of 28.4%. This was driven by higher revenues and cost discipline.
Underlying basis earnings per share increased by 20.7% to 88.6 pence per share.
In its half year results, Brooks Macdonald said it continues to seek acquisition opportunities, including a prospective acquisition of platform technology provider Hubwise.
Andrew Shepherd, CEO of Brooks Macdonald, said: "Although the short-term macroeconomic outlook is highly uncertain, looking ahead we remain confident in our long-term prospects building on our ambitious organic and inorganic growth strategy, grounded in our purpose of realising ambitions and securing futures."
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