Brooks Macdonald has revealed that there was a 5.4% decline in revenue in its international arm during its H1 results ending 31 December 2019.
It weighed in at £7m ($8.8m, €7.9m) down from £7.4m a year before, which was driven by “the realignment of the business over the last year”.
Funds under management rose 8.1% to £1.63bn from £1.51bn during the same six-month period the year before.
Underlying profit before tax was £1.4m, up from £900,000.
Re-energising international
“Our international business delivered encouraging progress with the leadership of Andrew Shepherd continuing to reinvigorate the business, focusing on delivering for clients, advisers and trustees,” the firm said in its annual results.
“The team is working to focus the business on its core opportunities and to make the organisation more efficient, which is starting to drive improved profitability.
“Although revenues were slightly down on the prior period, asset outflows are now at much reduced levels compared to the first half of last year.
“We see potential for material value creation in International as the reinvigoration continues.”
Overall
Funds under management at Brooks Macdonald Group remained flat during second half of 2019 as a result of softer client sentiment and the termination of an investment management agreement.
The wealth manager revealed assets stood at £13.1bn at the end of the year, unchanged from 30 June.
However, the firm’s assets jumped 12% over the year from £11.7bn at the end of December 2018.
This came despite net outflows of £500m during the year which the group put down to “softer client sentiment in the light of the political and macroeconomic backdrop, the group’s focus on efficiency and business quality and the termination of the investment management agreement for the Grosvenor Wealth Management funds”.
Elsewhere, revenue jumped by 8.1% to £55.8m, driven by higher average funds under management.
Underlying profit before tax was up 28.6% to £11.7m, with a profit margin of 21%.
