Wealth manager Brooks Macdonald's share price up after delivering 12 per cent funds under management growth in "uncertain markets"

 
William Turvill
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(FILES) A picture taken 17 April 2007 in...
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The share price of Brooks Macdonald rose nearly two per cent today after the investment manager reported a 12 per cent growth in discretionary funds under management (FUM).

The figures

The company’s results, for the six months to 31 December 2015, showed it increased its FUM value to £7.82bn, up from £6.95bn the year before.

The firm’s revenue, meanwhile, was up three per cent, from £37.5m to £38.7m.

And it reported an underlying pre-tax profit £7.1m, up six per cent from £6.7m.

The company said its earnings per share was 32.44p, up 22 per cent from 26.63p and announced an interim dividend of 12p, up from 10p.

Why it’s interesting

Chief executive Chris Macdonald told City A.M. how his firm had achieved FUM growth despite “pushing into a headwind”.

The co-founder said Brooks Macdonald had been competing in “uncertain markets” and that the firm expects this to continue.

“I don’t see volatility reducing,” he said. “We’ve obviously got Brexit coming up.”

Macdonald said his firm is against the UK leaving the European Union, adding: “Our house view is the fact that we believe that we will stay in and that will be the vote.

“And actually markets potentially have been worrying about nothing. But obviously sterling will move around that quite sharply.”

Brooks Macdonald’s share price rose nearly two per cent to 1,848p today.

What the company said

Macdonald in a statement:

Brooks Macdonald has continued to make good progress, with double digit growth in discretionary funds under management during the first half driving increases in profit and earnings per share. In uncertain markets, we have achieved strong risk adjusted returns for our clients and have progressed a number of significant projects across the group which will help drive future growth.

We have continued to see strong organic growth in the early weeks of the second half, albeit the volatility in markets since the New Year is likely to have impacted the Group’s funds under management.

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