Brooks Macdonald’s FUM rose by 4.3% in Q2-FY24, reaching £17.6bn, with a strong investment performance contributing £821m. The company is on track to meet its end-FY24 FUM target of £18.4bn. However, net flows were subdued at -£98m. A cost reduction programme is expected to save around £4m per year, with one-off restructuring costs of up to £3.0m.

In October 2023, Brooks Macdonald announced plans to reduce its workforce by 55, approximately 10% of its total staff, aiming to save £4m annually, although this will incur restructuring costs of up to £3.0m in FY24.

FUM increased marginally over Q1 of FY24, and despite a slight negative net flow, the company’s valuation remained unchanged at 3,000p per share. The sector has seen a significant de-rating since the end of 2021.

Following the FY23 results, Brooks Macdonald reported positive net flows and completed two acquisitions. Management provided updates on their growth strategy and financial performance, including increased dividends.

By the close of FY23, FUM had increased by 7.5% year-over-year, ending at £16.9bn. The appointment of Andrea Montague as CFO was announced, with expectations for FY23 results to align with forecasts despite a slight adjustment in revenue composition.

Concerns were raised about senior management’s focus, with criticisms pointing towards their involvement in personal financial optimisations and a recent high-profile staff departure, suggesting potential management issues affecting company performance.

Brooks Macdonald’s consistent positive net flows were highlighted, particularly impressive given the challenging market conditions prevalent since late 2021.

For H1-23, Brooks Macdonald reported a 4% increase in FUM and an 8% dividend raise, with forecasts upgraded based on a positive net flow outlook and contributions from acquisitions.

Continued momentum in Q2 of FY23 saw FUM increase by 4.5%, with management confirming that performance was in line with expectations, and the company’s valuation was adjusted based on changes in the UK 10-year gilt yield.

FY22 results showed a decline in FUM due to market impacts, but net flows were up 4.8%. The company’s underlying profit margin increased, aligning with its goal to maintain a top quartile margin. However, the share price exhibited limited momentum.