(Alliance News) - Brooks Macdonald Group PLC on Thursday reported increased interim revenue, due to a return to positive net inflows and a contribution from its recent acquisition, leading the company to lift its payout to shareholders.
In the six months to December 31, the London-based investment manager posted a pretax profit of GBP13.2 million, down 6.4% from GBP14.0 million in the comparable period in 2020.
Brooks Macdonald explained the decrease was an exceptional gain in the prior period from the acquisition of Cornelian Asset Management Ltd's and Lloyds Banking Group' PLCs Channel Islands funds and wealth management business. The company announced the purchase of the business for GBP9.3 million in June and completed it in December.
Revenue increased by 11% in the half-year period to GBP61.9 million from GBP55.9 million.
Brooks Macdonald attributed this to positive and increasing net flows over the six months. Net flows swung to positive GBP326 million over the period compared to GBP367 million in outflows a year before.
The company ended 2021 with GBP17.3 billion in funds under management, up from GBP15.5 billion at the same point the year before and up from GBP16.5 billion six months prior.
A complete half-year contribution from its funds and wealth management business acquisition also contributed to the results, it said, although it was partly offset by lower transaction-related revenue.
In response to these "strong" results and due to confidence in its long-term prospects, Brooks Macdonald decided to raise its interim dividend by 13% to 26.0p from 23.0p.
Looking ahead, the company said that it is also confident in its organic and inorganic growth strategy.
"I am pleased to report that we delivered sustained strong financial performance for the first half-year with positive net flows and record underlying profit margin of over 28%, enabling us to increase our interim dividend once again by 13%. These results clearly show growing client demand for our products and services alongside continued cost discipline," Chief Executive Andrew Shepherd 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."
Shares were down 1.8% at 2,140.20 pence each on Thursday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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Brooks Macdonald (BRK)