Brooks Macdonald Group Delays Mid-Term Net Flow Ambition

The Brooks Macdonald Group, a prominent U.K. asset manager, might experience a setback in achieving its mid-term net flow target. Short-term challenges in the first quarter are expected to result in outflows, potentially breaking its streak of inflows over fiscal 2023.

Despite this, the company remains optimistic about overall net flows, expecting them to remain positive for the rest of fiscal 2024. As of June 30, the company's funds under management stood at GBP16.8 billion, representing a 7.5% increase from the previous year. Despite weaker investor sentiment, the company experienced positive net flows every quarter and ended the year with net flows 5.2% higher compared to the previous year.

In terms of financial performance, the London-listed group reported a pretax profit of £22.2 million for the year ended June 30, a decrease from £29.5 million in the previous year. This decline in underlying profit from £34.5 million to £30.3 million can be attributed to cost pressures. However, revenue slightly increased from £122.2 million to £123.8 million, driven by inflows and investment performance.

The board of Brooks Macdonald Group declared a final dividend of 47 pence per share, surpassing the 45 pence per share dividend declared the previous year. This brings the full-year payout to 75 pence per share, up from 71 pence.