Brooks Macdonald Grp - Quarterly FUM & Intention to Move to Main Market
15/01/2025 07:00
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RNS Number : 3334T Brooks Macdonald Group PLC 15 January 2025
15 January 2025
BROOKS MACDONALD GROUP PLC
Quarterly Flows and FUM update and Intention to Move to the Main Market
Brooks Macdonald Group plc ("Brooks Macdonald" or the "Group") today announces
flows and funds under management ("FUM") for the quarter ended 31 December
2024 and its intention to move from AIM to the London Stock Exchange's Main
Market.
Andrea Montague, CEO of Brooks Macdonald commented:
"This is Brooks Macdonald's strongest quarter of gross inflows for 18 months,
driven by the quality of our service, the scope of products tailored to meet
clients' needs, and our strong investment performance.
While outflows remained elevated in the quarter, we are taking actions to
improve asset retention as well as driving new business growth. Additionally,
we continue to scale and enhance our financial planning expertise, including
most recently through the acquisitions of LIFT, Lucas Fettes and CST Wealth
Management. We remain focused on the execution of our strategy to reignite
growth, serving our clients well, reaching more clients, and delivering value
for our clients, shareholders and employees.
I am pleased to announce the Board's intention to transition Brooks Macdonald
from AIM to the Main Market. This move will further enhance the Group's
corporate profile and extend the opportunity to own its ordinary shares to a
broader group of investors."
Flows and Funds under Management
· Total Funds under Management of £17.9bn at 31 December 2024 (30
September 2024: £17.9bn(1), 30 June 2024: £17.8bn(1)). Total FUM excluding
BMI of £15.7bn at 31(st) December 2024 (30 September 2024: £15.6bn, 30 June
2024 £15.5bn).
· Gross inflows excluding BMI were robust in the 3 months to 31
December at £579m. These were offset by £(730)m of gross outflows. Net
outflows in the quarter totalled £(151)m, equivalent to (1.0)% of opening
FUM.
· Net inflows to our MPS Platform business(2) were encouraging at
£146m, representing annualised organic net flows in the quarter of 13% of
opening FUM, continuing the strong growth in the prior quarter.
· Investment performance contributed £0.2bn towards FUM in the quarter
against a mixed market background.
Trading update
· The Group anticipates its full year performance will be in line with
its expectations and expects a return to positive net flows later in the year.
Intention to move from AIM to the Main Market
Brooks Macdonald announces today its intention to apply to the Financial
Conduct Authority for the Group's ordinary shares to be admitted to the Equity
Shares (Commercial Companies) segment of the Official List and to trading on
the Main Market of the London Stock Exchange ("Admission").
Since being founded in 1991 and listing on AIM in 2005, the Group has
demonstrated a strong commercial and financial track record, scaled
shareholder returns and built a broad and supportive shareholder base. The
Board considers that Admission would further enhance the Group's corporate
profile, as well as extending the opportunity to own its ordinary shares to a
broader group of investors.
Brooks Macdonald does not intend to raise any funds or offer any new shares in
connection with the Admission or the publication of the related prospectus.
The Admission will be effected through an introduction of the Company's
existing ordinary shares and is expected to occur no earlier than 4 March 2025
and by 31 March 2025, at which time the Group's listing on AIM is expected to
be cancelled. Accordingly, the Group hereby gives notice of the intended
cancellation of trading of its ordinary shares on AIM in accordance with Rule
41 of the AIM Rules for Companies.
Admission is subject to the approval by the FCA of a prospectus and the
ordinary shares being admitted by the FCA to the Official List and by the
London Stock Exchange to trading on the Main Market. Admission is not
conditional upon shareholder approval. Shareholders should note that the
Group's shares will no longer be traded on AIM with effect from Admission and
should consult their own professional advisers regarding the consequences of
Admission.
Brooks Macdonald will make a further announcement in due course.
Enquiries:
Investors
Brooks Macdonald Group plc
Andrea Montague, CEO
Katherine Jones, CFO
Alexander Holcroft, Interim Director of Investor Relations
Phone: +44 (0)7418 923 061
Email: alexander.holcroft@brooksmacdonald.com
Singer Capital Markets (Nominated Adviser and Joint Broker)
Charles Leigh-Pemberton / James Moat +44 (0)20 7496 3000
Investec Bank plc (Joint Broker and Sponsor in connection with Admission)
Christopher Baird / David Anderson +44 (0)20 7597 5970
Teneo (Media
Enquiries)
Misha Bayliss +44 (0) 20 74275465
Oscar Burnett +44 (0) 20 74275435
Email: brooksmacdonald@teneo.com
Net flows by service for the quarter ended 31 December 20241
Quarter ended 31 December 2024 (£m)
Opening FUM as at Organic net flows Investment performance Closing FUM as at Organic net flows as % of opening FUM Movement in FUM
1 Oct 24 31 Dec 24
BPS 8,835 (232) 79 8,682 (2.6)% (1.7)%
MPS Custody 961 (26) 10 945 (2.7)% (1.7)%
MPS Platform 4,554 146 73 4,773 3.2% 4.8%
MPS total 5,515 120 83 5,718 2.2% 3.7%
Funds 1,286 (39) 11 1,258 (3.0)% (2.2)%
UK total 15,636 (151) 173 15,658 (1.0)% 0.1%
International 2,271 (43) 46 2,274 (1.9)% 0.1%
Total 17,907 (194) 219 17,932 (1.1)% 0.1%
Net flows by service for the six months ended 31 December 20241
Six months ended 31 December 2024 (£m)
Opening FUM as at Organic net flows Total YTD investment performance Closing FUM as at Organic net flows as % of opening FUM Movement in FUM
1 Jul 24 31 Dec 24
Q1 Q2 Total YTD
BPS 8,880 (176) (232) (408) 210 8,682 (4.6)% (2.2%)
MPS Custody 974 (26) (26) (52) 23 945 (5.3)% (3.0%)
MPS Platform 4,367 142 146 288 118 4,773 6.6% 9.3%
MPS total 5,341 116 120 236 141 5,718 4.4% 7.1%
Funds 1,323 (51) (39) (90) 25 1,258 (6.8)% (4.9)%
UK total 15,544 (111) (151) (262) 376 15,658 (1.7)% 0.7%
International 2,262 (16) (43) (59) 71 2,274 (2.6)% 0.5%
Total 17,806 (127) (194) (321) 447 17,932 (1.8)% 0.7%
Analysis of FUM gross flows by service in the quarters ending 30 September and
31 December 20241
Q1 FY25 Q2 FY25
3 months ended 30 Sept 3 months ended 31 Dec
Gross inflows Gross outflows Net flows Gross inflows Gross outflows Net flows
BPS 160 (336) (176) 166 (398) (232)
MPS Custody 14 (40) (26) 12 (38) (26)
MPS Platform 311 (169) 142 317 (171) 146
MPS total 325 (209) 116 329 (209) 120
Funds 43 (94) (51) 84 (123) (39)
UK total 528 (639) (111) 579 (730) (151)
International 52 (68) (16) 51 (94) (43)
Total 580 (707) (127) 630 (824) (194)
1 All FUM numbers exclude the Defensive Capital Fund ("DCF"). The transfer of
the investment management of DCF to RM Capital Markets Limited completed in
November 2024. The DCF closing FUM at completion date was of £133.5 million.
(2) Includes Brooks Macdonald Investment Solutions ("BMIS"), the Group's B2B
offering for financial advisers.
Notes to editors
About Brooks Macdonald
Brooks Macdonald Group plc is a leading provider of wealth management services
in the UK.
Proudly serving clients since 1991 and trading on AIM since 2005, Brooks
Macdonald is independent, financially strong, and aims to deliver strong and
consistent investment performance for clients to meet their financial
objectives. The company's broad and diverse product range means that clients
get solutions made just for them and allows Brooks Macdonald to support
clients throughout their entire lives as needs and circumstances change. The
company is recognised as an innovator in the industry having been amongst the
first to develop and launch key products such as Managed Portfolio Service
(MPS) and bespoke income solutions.
Realising Ambitions. Securing Futures. We are Brooks Macdonald.
Forward-looking statements
This announcement may include statements, beliefs or opinions that are, or may
be deemed to be, "forward-looking statements". These forward-looking
statements may be identified by the use of forward-looking terminology,
including the terms "believes", "estimates", "plans", "projects",
"anticipates", "targets", "aims", "continues", "expects", "intends", "hopes",
"may", "will", "would", "could" or "should" or, in each case, their negative
or other variations or comparable terminology, or by discussions of strategy,
plans, objectives, goals, future events or intentions. No representation or
warranty is made that any of these statements or forecasts will come to pass
or that any forecast results will be achieved. Forward-looking statements may
and often do differ materially from actual results. Any forward-looking
statements contained in the announcement speak only as of their respective
dates, reflect Brooks Macdonald's current view with respect to future events
and are subject to risks relating to future events and other risks,
uncertainties and assumptions relating to Brooks Macdonald's business, results
of operations, financial position, liquidity, prospects, growth and
strategies.
Except as required by any applicable law or regulation, Brooks Macdonald
expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements contained in this
announcement or any other forward-looking statements it may make whether as a
result of new information, future developments or otherwise.
Investec Bank plc ("Investec") is authorised by the Prudential Regulation
Authority (the "PRA") and regulated in the United Kingdom by the PRA and the
Financial Conduct Authority (the "FCA"). Investec is acting exclusively for
Brooks Macdonald and no one else in connection with Admission, the contents of
this announcement or any other matters described in this announcement.
Investec will not regard any other person as its client in relation to
Admission, the content of this announcement or any other matters described in
this announcement and will not be responsible to anyone other than Brooks
Macdonald for providing the protections afforded to its clients or for
providing advice to any other person in relation to Admission, the content of
this announcement or any other matters referred to in this announcement. This
announcement has been issued by and is the sole responsibility of Brooks
Macdonald. No representation or warranty, express or implied, is or will be
made as to, or in relation to, and no responsibility or liability is or will
be accepted by Investec or by any of its, subsidiaries, branches or
affiliates, or any person acting on its or their respective behalf's as to, or
in relation to, the accuracy or completeness of this announcement or any other
written or oral information made available to or publicly available to any
interested party or its advisers, and any liability therefore is expressly
disclaimed.
LEI: 213800WRDF8LB8MIEX37
www.brooksmacdonald.com (http://www.brooksmacdonald.com) / @BrooksMacdonald
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