British wealth manager Brooks MacDonald has agreed to sell its property management arm Braemar Estates to Rendall & Rittner for £1.9m.
The disposal of the business was done after a strategic review. Rendall will pay the deal consideration in three tranches, of which half will be paid following deal closing.
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The remainder deal amount will be paid over two years from the completion date.
Brooks Macdonald Group CEO Caroline Connellan said: “The disposal of our property management business will enable us to focus more closely on our core offerings and is expected to contribute over time to improved margins.”
The disposal comes as Brooks MacDonald posted pre-tax profit of £8m for the year ended 30 June 2017, a slump of 49% compared to £15.9m a year ago. Underlying pre-tax profit increased 19% to £18.4m from £15.5m a year ago.
The company’s revenue was £91.7m, a rise of 13% over £81.4m reported last year.
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By GlobalDataDiscretionary funds under management totalled £10.5bn at the end of June 2017, a 26% surge compared to £8.3bn a year earlier. The rise was driven by £1bn in net new business and £1.2bn in investment performance.
“I am encouraged by the strong underlying results we are reporting for the year, with FUM reaching £10.5bn and underlying profitability up by 19%, reflecting the strength of our core offering and relationships. We are making progress on the initiatives I outlined in July, to invest in our risk and operational framework and to proactively deal with certain legacy matters,” Connellan said.
