Brooks Macdonald 2017 Final Results
19% increase in underlying profit before tax; all four business segments reported underlying profit before tax
Statutory profit before tax fell principally due to the previously announced £6.5m legacy matters provision
Total dividend increased by 17% to 41p (2016: 35p) reflecting the Board's continued confidence in the strength of the business and commitment to a progressive dividend policy
Sale of Braemar Estates, our property management business, announced separately today for £1.9m in line with our focus on our core offerings and to improve the Group's margin
26% increase in discretionary FUM which passed the £10bn milestone; good momentum continues:
o Organic growth (net new discretionary business) of £1bn (11.5% increase)
o Investment performance of £1.2bn (14.5% increase); as a comparison, the FTSE UK Private Investor Balanced Index increased by 10.5% over the year
Increased FUM in all discretionary investment management segments:
o Strong growth in BPS and MPS offerings
o BMI passed £1.53bn with 13.3% growth (2016: £1.35bn)
o Funds grew 46% to exceed £1.2bn FUM (2016: £796m); Defensive Capital Fund now exceeds £425m
Investing for now and to support future growth:
o IT system development delivered as planned
o Investment in risk management and operational framework reflecting increased scale of business and categorisation as an IFPRU significant firm
o Proactively dealing with certain legacy matters arising from the former Spearpoint business, reflecting commitment to treating customers fairly and supporting relationships with professional intermediaries
Expansion of our distribution capabilities, enhancing our reach in the UK and internationally:
o Added two new strategic alliances with professional intermediaries, including the first internationally
o Expanded regional footprint with new investment management office opening in Cardiff
Strong investment management performance and high levels of service recognised:
o Portfolios across all risk mandates achieving above-benchmark returns according to Asset Risk Consultants (ARC)
o Awarded the prestigious industry Gold Standard Award for service in discretionary fund management
o Received five star ratings from Defaqto for each of our main discretionary offerings
o Our Leamington Spa and Tunbridge Wells offices were winners of their respective geographical categories in the Citywire Regional Star Awards in 2017
