Brooks Macdonald profits dip 12.2% despite £1.3bn MPS inflow

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14 September 2023

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Brooks Macdonald profits suffered despite attracting £800m net inflows for the year to 30 June.

In its full-year results, published today (14 September), the wealth manager disclosed a 12.2% underlying profit fall to £30.3m from £34.5m mainly as a result of the inflationary environment, as well as acquisition-related expenses.

However, the firm’s model portfolio service pulled in a net £1.3bn inflow over the year.

The wealth manager also added £1.1bn to funds under management (FUM), reaching £16.8bn, up 7.5% on the £15.7bn at the end of FY22.

Meanwhile, revenue also ticked up 1.3% on the previous year, hitting £123.8m. Brooks attributed the increase to positive net flows, investment performance and acquisitions.

Andrew Shepherd (pictured), CEO of Brooks Macdonald, said: “I’m pleased to report a year of strategic progress and solid financial performance for Brooks Macdonald, highlighting once more the resilience of our strategy and our business model.

“Despite market headwinds we delivered 5.2% net flows and robust underlying profit margin. Although the economic climate continued to affect investor sentiment, we delivered consistent positive net flows, demonstrating the strength of both our proposition and our relationships with clients and advisers.

“As we look ahead, our focus remains on ensuring we are well positioned to support clients, advisers and our people. This underpins our ambition and the plans we have in place to take advantage of the long-term opportunity. Supported by a strong capital position, our proven strategy, and motivated people, we look to the future with confidence.”

Looking ahead to the next financial year, the firm expects net flows to remain positive in FY24 as a whole, despite short-term macro headwinds “likely to result in negative net flows for Q1”, which “may affect the timing of delivery of our medium-term 8-10% per annum net flow ambition”, it said.