British wealth manager Brooks Macdonald has withstood Covid-19 headwinds, registering growth in profit, revenue, and FUM.
Highlights
The firm’s statutory pre-tax profit during the year to 30 June 2020 stood at £10m, a 27% increase from £7.9m a year ago.
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Underlying profit before tax increased 11% year-on-year to £23m.
Revenue also increased 3% from £105.7m to £108.6m over the period.
Total discretionary FUM were £13.7bn at the end of June 2020, up 4% from £13.1bn in the prior year.
Dividend
The firm has kept its proposed final dividend for the year unchanged at 32p.
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By GlobalDataHowever, it increased its total dividend by around 4% to 53p from 51p.
Brooks Macdonald CEO Caroline Connellan said: “We increased our profit margin, delivered record revenue and underlying profit, and announced two high-quality acquisitions.
“This has been made possible by the actions we have taken over recent years as well as our “protect to thrive” approach through COVID-19, allowing us to operate successfully in this uncertain and ever-changing world.
Connellan however called the short-term outlook uncertain.
He noted: “The short-term outlook is uncertain, driven by both the progress of the pandemic and events surrounding Brexit.
“Nonetheless, the fundamental opportunity for Brooks Macdonald remains strong, we are uniquely positioned in the market and confident about what the future holds.”
Brooks Macdonald developments
The firm has 12 offices in London, East Anglia, Hampshire, Leamington Spa, Leeds, Manchester, Taunton, Tunbridge Wells, Scotland, Wales, Jersey and Guernsey.
Earlier this month, the firm launched its Responsible Investment Service to international advisers, trustees and clients.
At the same time, it named Ben Palmer as head of its Responsible Investment Service.
In June 2020, the firm agreed to acquire the Channel Islands wealth management and funds business of Lloyds Bank International.
Brooks Macdonald also acquired Cornelian Asset Managers Group this year.
This January, Brooks Macdonald lost a £244m investment management contract with Grosvenor Wealth Management.
Strategy
Brooks Macdonald also said that its vision is to become “the leading investment manager for intermediaries, with best-in-class adviser experience and client service levels”.
The firm is currently in advanced talks on a partnership with a wealth management technology provider to drive this transformation.
