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Numis upgrades Brooks Macdonald to ‘buy’ after solid end to fiscal year

Brooks Macdonald now has £12.4bn in funds under management – almost 20% more than it had this time last year
money tree
Shares have fallen by more than 10% in the past few weeks

Brooks Macdonald Group PLC (LON:BRK) shares edged higher on Thursday after reporting a 6.5% rise in funds under management in the final quarter of its fiscal year, prompting an upgrade from City broker Numis.

The investment manager now has £12.4bn in funds under management – almost 20% more than it had this time last year.

Year of impressive FUM growth​

Net inflows during the three months to the end of June totalled £214mln, ahead of Numis’ forecasts of £198mln. Investment performance – the return on the portfolio – totalled £542mln in the quarter.

“I am pleased to report that a solid final quarter completes another year of impressive FUM growth for Brooks Macdonald,” said chief executive Caroline Connellan.

“While markets have fluctuated over the second half of our financial year, we have again generated strong net new business and delivered robust investment performance.

“Our organic growth has been largely driven by the depth of the relationships we have built with our clients and the advisers who support us.  This, combined with rigorous cost discipline, will enable us to deliver sustainable growth and improved operating margins in the medium term.”

Citing recent share price weakness – the stock is down more than 10% over the past month – Numis upgraded Brooks to ‘buy’ from ‘hold’ and maintained its 2,300p target price.

Shares rose 2% to 1,825p in early afternoon trading.

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