Profit falls at Brooks Macdonald put down to higher admin costs

 
Joseph Millis
WEALTH manager Brooks Mac­donald Group yesterday reported a fall in first-half pre-tax profit due to higher costs, as revenue increased and the company’s discretionary funds under management rose substantially.

Brooks Macdonald said its pre-tax profit for the six months to the end of December was £4.5m, down from £4.9m a year earlier, due to higher finance and administrative costs and a one-off charge related to the 2012 acquisition of Spearpoint.

Revenue increased to £37.5m from £33.4m as the company saw a 22 per cent growth in discretionary funds under management to £6.95bn from £5.68bn.

“Brooks Macdonald is delighted to celebrate its 10th anniversary on Aim this month. Over the period funds under management have grown 1,600 per cent from £400m to over £7bn today.

“For the remainder of the current half-year, our investment in the business for growth continues as planned and at the level anticipated. Our expectations for the year as a whole therefore remain unchanged,” said chief executive Chris Macdonald.

Shares in Brooks Macdonald closed down 1.35 per cent 1,457p.