Strong strategic progress underlined by excellent financial performance for Brooks Macdonald International in Group annual results,
The results highlight improved revenue and profit for Brooks Macdonald International, which has offices in Guernsey and Jersey, boosted by the contribution of the recently acquired Lloyds Banking Group’s Channel Islands funds and wealth management business.
In particular, the International business reported an increase in revenues of 35.8% driven primarily by the acquisition of the Lloyds Channel business adding £0.9 billion in Funds Under Management (FUM) and £5.3 million in revenues during the year since November 2020, whilst the division’s profits almost doubled, and its underlying profit margin was up by six percentage points on the prior year. The results also show that FUM for the International business grew by 59.2% to stand at £2.5 billion at the end of the period.
In addition to solid investment performance, the results note that this growth was principally driven by of the Lloyds Channel Islands acquisition, and that with the acquired business now fully integrated, International is best positioned to continue to grow and attract new Funds Under Management (FUM).
Meanwhile, for the Group overall, the results show that total FUM reached a record level of £16.5 billion, up 20.3% on last year, whilst Group revenue was up 8.8% to £118.2 million and underlying profit margin was up by 4.7 points to 25.9%.
The results also point to key strategic milestones across the Group over the past year, including material progress on the Group’s digital transformation programme, and a near 50% increase in FUM for the Group’s specialised Bespoke Portfolio Service products, including its Responsible Investment Service.
Richard Hughes (pictured), CEO of Brooks Macdonald International, commented: “I am pleased to report that, in a period dominated by the pandemic, we have not only again delivered strong financial performance, but we have also made further progress against our strategic ambitions. FUM reached record levels, we increased our profit margin and delivered improved revenue and underlying profit – at the same time as successfully integrating the Lloyds Channel Islands funds and wealth management business, to significantly increase our scale, service offerings, and capabilities. And all in the Group’s 30th anniversary year!
“We continued to deliver a high-quality service to clients and made great progress in our ongoing ambitions to transform client and intermediary service levels through technology and innovation. None of this would have been possible without the steadfast commitment and hard work of our people who have done an exceptional job in the most unprecedented circumstances.”
