Brooks Macdonald Group FuM slips as choppy markets in December dent growth
Source - SMW
Brooks Macdonald Group said funds under management slipped as investment performance took a hit from choppy market conditions in December last year.
For the six months ended 31 December, discretionary funds under management (FUM) fell 4.5% to £11.9, as investment performance fell by £799m, though this was partly offset by solid net new business of £241m, which was down from £808m a year earlier.
Pre-tax profits slumped 35.6% for the year and revenue was up 7.7% from a year earlier.
The interim dividend rose 11.8% to 19.0p a share.
'We delivered a good first half with growth in underlying profit against a backdrop of difficult market conditions and weaker client sentiment, caused by macroeconomic and political uncertainty,' said Caroline Connellan, Chief Executive.
'December in particular was a challenging month but our UK Investment Management business has maintained a good level of net new business over the period, reflecting the strength of our client and adviser relationships.'
'In January, we announced measures to drive efficiency and effectiveness in the business, streamlining processes, building a scalable operating model and making Brooks Macdonald easier to do business with. These changes will deliver material cost savings, which we will start to benefit from in the second half, supporting medium-term margin improvement.'
At 8:38am: (LON:BRK) Brooks Macdonald Group PLC share price was +7.5p at 1595p