Brooks Macdonald Grp - Acquisition of LIFT
08/10/2024 07:00
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RNS Number : 2821H Brooks Macdonald Group PLC 08 October 2024
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Brooks Macdonald Group plc
Acquisition of LIFT to accelerate growth in Financial Planning
Brooks Macdonald Group plc ("Brooks Macdonald", the "Group" or the "Company")
announces today that it will acquire 100% of the issued share capital of each
of LIFT - 'LIFT-Financial Group Ltd and LIFT-Invest' (together, "LIFT") for an
initial consideration of £30 million payable in cash on completion and a
total consideration of up to £45m, subject to financial targets (the
"Acquisition"). The Acquisition aligns with the Group's strategy by expanding
its client reach and accelerating growth in Financial Planning. The
Acquisition is subject to regulatory approval and is expected to complete by
the end of March 2025.
Andrea Montague, CEO & CFO of Brooks Macdonald, commented:
"I am pleased to announce today the acquisition of LIFT, a high-quality and
well-established financial services business with a track record of profitable
growth. This is an exciting step in the execution of our strategy and
reinforces our commitment to delivering trusted financial planning services
backed by best-in-class multi-asset investment solutions. I look forward to
welcoming the talented and experienced LIFT team to Brooks Macdonald."
Michael Holden & Joel Adams, Founders of LIFT, commented:
"We are delighted that we have partnered with Brooks Macdonald, a business
with an excellent reputation who share our commitment to achieving the best
possible outcomes for clients. We are tremendously proud of the business we
have built over the last 17 years, and as part of Brooks Macdonald we will be
able to bring a new level of sophistication to our investment proposition, as
well as much better opportunities for our people as part of a larger business.
We look forward to joining the Group and are excited about the future of our
business as we leverage the opportunities this transaction will create for
everyone involved."
LIFT is headquartered in Greater Manchester, with offices in London and
Edinburgh. As at 31 December 2023, assets under advice (AuA) are c. £1.6
billion of which c. £600 million are also Funds Under Management (FuM).
LIFT's high-quality base of c. 1,400 clients is made up of private individuals
- predominantly in financial services and professional sports - families and
corporate clients. In addition to wealth management, LIFT offers mortgage and
insurance services.
LIFT delivered revenues of £11.3 million, EBITDA of £2.5 million and
reported PBT of £0.5 million for the year ended 31 December 2023. As of 31
December, 2023, it had net assets of £0.8 million. The Acquisition is
expected to be accretive to underlying earnings per share in the first full
year of ownership.
The Acquisition will further enhance the Group's existing financial planning
capabilities and those that have been recently acquired through the purchase
of Lucas Fettes Financial Planning. These acquisitions combined will add over
£16.5m of annual revenues and grow our AuA by c 70% to create a UK financial
planning capability with AuA of c. £6.2 billion (post BMI disposal). LIFT
forms a good strategic fit with the Group's best-in-class investment
management capabilities and provides strong opportunities for growth in the
future.
Further details
Total consideration for the Acquisition is up to £45 million, which will be
funded from the Group's existing cash resources:
· £30 million paid in cash upon completion.
· Up to £10 million paid in cash at the end of the first 12 months
following completion depending on achieving certain client retention (weighted
by AuA) targets; and
· Up to £5 million paid in a 50:50 mix of cash and Brooks Macdonald shares
at the end of the first 12 months following completion dependent on EBITDA
financial targets being met.
Enquiries:
Brooks Macdonald Group plc
Andrea Montague, CEO & CFO
Alick Mackay, Strategy & Corporate Development Director
Singer Capital Markets Advisory LLP +44 (0) 20 7496 3000
(Nominated Adviser and Joint Broker)
Charles Leigh-Pemberton / James Moat
Investec Bank plc (Joint Broker) +44 (0) 20 7597 5970
Christopher Baird / David Anderson
FTI (Media Enquiries) Brooksmacdonald@fticonsulting.com (mailto:Brooksmacdonald@fticonsulting.com)
Edward Berry / Katherine Bell +44 (0) 7703 330199 / +44 (0) 7976 870961
About Brooks Macdonald
Brooks Macdonald Group plc, which was founded in 1991 and began trading on AIM
in 2005, had discretionary FUM of £18.0 billion as of 30 June 2024.
Brooks Macdonald offers leading multi asset investment services to
intermediaries and high-quality financial planning advice to private clients,
benefitting from a strong local presence across the UK.
The next scheduled announcement is the Q1 FUM announcement, currently
scheduled for 16 October 2024.
Cautionary statements
This Announcement may contain, and the Company may make verbal statements
containing "forward‑looking statements" with respect to certain of the
Company's plans and its current goals and expectations relating to its future
financial condition, performance, strategic initiatives, objectives, and
results. Forward‑looking statements sometimes use words such as "aim",
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beyond the control of the Company. As a result, the actual future financial
condition, performance, and results of the Company may differ materially from
the plans, goals and expectations set forth in any forward‑looking
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on behalf of the Company speak only as of the date they are made.
The information contained in this Announcement is subject to change without
notice and except as required by applicable law or regulation (including to
meet the requirements of the AIM Rules, and/or FSMA), the Company expressly
disclaims any obligation or undertaking to publish any updates or revisions to
any forward‑looking statements contained in this Announcement to reflect any
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statement in this Announcement should be interpreted to mean that earnings per
share of the Company for the current or future years would necessarily match
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