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Shares in AIM-listed wealth management firm Brooks Macdonald (LON:BRK) moved 2.76% higher to 2,014p (as of 13:20 BST) as it reported a 22.4% improvement in pre-tax profits for the year ended 30th June. Revenues from continuing operations were up by 7.3% and discretionary funds under management climbed by 6.8%.
CEO Caroline Connellan commented: “I am delighted that we continue to make good progress on our strategy, with underlying profit margin increased to 19.6% reflecting our commitment to improve margins in the medium-term. The actions we announced in January have started to streamline the business, deliver efficiencies and make Brooks Macdonald easier to do business with. Looking ahead, we expect to deliver improved margins in the medium term by investing in our talent and capabilities to drive growth while continuing to exercise tight cost discipline.
“Our net new business of 5.4% in UK Investment Management is again one of the best in the sector, reflecting the strength of our client and adviser relationships. This, coupled with robust investment performance, drove FUM to a new record of £13.2 billion at the year end.
“We remain cautious about the short-term outlook given the backdrop of political and macroeconomic uncertainty and its continuing effect on client sentiment. Nonetheless, the fundamental opportunity for Brooks Macdonald remains strong, and we are confident in our positioning and our continued ability to drive sustainable value-enhancing growth over the medium term”.