Brooks Macdonald reports record revenue and FUM despite Covid-19 crisis

Brooks Macdonald has delivered record revenue of £108.6m during the year to 30 June 2020, and hit funds under management (FUM) of £13.7bn, also a new record for the firm, despite "extremely volatile" market conditions.

The latest FUM figure represents a 4.1% increase on the 2019 year-end figure, while revenue increased 2.7% on last year.

This was driven by two acquisitions, including that of Cornelian Asset Managers announced last November, as well as the firm's "protect to thrive" approach to the Covid-19 pandemic, which placed the health and wellbeing of its personnel at the top of its agenda.

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Investment performance for the financial year to 30 June was also positive at 1%, beating the firm's benchmark, MSCI PIMFA Private Investor Balanced Index, which declined 3.5% over the same period.

During the year, underlying profit before tax also rose 11.1% to £23m and underlying earnings per share increased slightly from £123.5p to £123.7p.

The proposed final dividend for the year has remained the same as last year at 32p, but the total dividend increased from 51p to 53p. Meanwhile, net cash reserves jumped 45.1% to £50.2m.

Caroline Connellan, CEO of Brooks Macdonald, said: "I am delighted with our strong financial performance and the continued disciplined execution of our strategy, particularly given the context of a challenging year with the unprecedented backdrop of Covid-19.

"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."

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She added that the firm was nearing the completion of the strategy it announced in 2017 and has delivered the outcomes it promised, becoming a "more robust business".

The next stage, she said, is "to transform our adviser experience and client service levels to be best in class", which will involve creating a "market-leading" digital experience for advisers and clients, "including automated onboarding, full adviser and client portal functionality, and bespoke reporting".

She revealed that the firm is working on this with a "leading wealth management technology and services company" and is close to agreeing on a partnership deal.

Commenting on the outlook going forward, Connellan said: "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."