Brooks Macdonald to move off AIM as firm eyes further growth
Brooks Macdonald is set to ditch AIM for the London Stock Exchange’s main market as the asset manager looks to enhance its profile and drive growth.
In a trading update, the asset manager said that the move would enhance its “corporate profile,” as well as extend the “opportunity to own its ordinary shares to a broader group of investors”.
The transition, which is not subject to shareholder approval, is expected to take place in March.
Brooks Macdonald also reported that the quarter had been its strongest for gross inflows in the last year and a half, despite net inflows coming in slightly weaker than forecast by analysts.
Gross inflows over the three months to 31 December were £579m. Gross outflows came in at £730m.
Net outflows totalled £151m and investment performance added £200m. Funds under management ended the period at £17.9bn.
Morning Wire revealed today that Brooks Macdonald had made various layoffs among its senior staff in recent months, including its global head of distribution, global head of marketing, and head of public relations.
“It seemed to me that they were keeping it below the 10 per cent threshold, and doing it over a staggered period of time, so they didn’t have to enter into a consultation,” said one former employee.
Brooks Macdonald’s management also indicated today that its numerous acquisitions over the last few months, including financial planning firm Lucas Fettes and independent financial advisor LIFT, are progressing well and that the sale of its international business remains on track.
“We continue to believe that these transactions will help accelerate the execution of the group’s strategy and leave it better placed to take advantage of the structural growth areas in the UK Wealth space,” said Investec analysts Rahim Karim and Jens Ehrenberg.
Despite the lower-than-expected assets under management, Investec analysts kept their earnings per share forecast for the company unchanged, thanks to lower cost expectations.
“While outflows remained elevated in the quarter, we are taking actions to improve asset retention as well as driving new business growth,” said Brooks Macdonald CEO Andrea Montague.
“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.”