Brooks Macdonald has posted statutory profit after tax of £8.2m for the first half of the fiscal year 2023, down 20% compared with £10.2m in the year ago period.
In the six months to 31 December 2022, the group’s underlying profit before tax was £14.5m versus £17.6m on the equivalent period a year earlier.
Revenue at the British wealth manger dropped 4.8% to £58.9m from £61.9m in the year ago period.
This decline in revenue was caused by the effect of unstable markets on average FUM, reduced revenues associated with transaction and the repricing of the firm’s Cornelian Risk Managed Fund (RMF) range.
However, this was somewhat offset by positive net flows and higher interest income.
Funds under Management (FUM) totalled £16.2bn, down 6.3% from £17.3m reported in the first half of fiscal year 2021.
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Net flows during the period reached £347m, with annualised net flows of 4.4% as against 4% for the same period last year.
The firm’s core UK discretionary business recorded annualised net flows of 7.8% during the period under review due to significant growth in Brooks Macdonald Investment Solutions (BMIS), among others.
Underlying diluted earnings per share fell to 72.5 pence from 85.4 pence in the same period last year.
In addition, the firm has increased the interim dividend per share by 8% to 28 pence.
Brooks Macdonald CEO Andrew Shepherd said: “I am encouraged by our underlying profit margin for the half year remaining robust at close to 25%, a reflection of continued cost discipline offsetting the impact of difficult markets on our funds under management and hence our revenue.
“Overall, our financial performance for the period was solid with positive net flows demonstrating continuing intermediary and client demand for our products and services.
“This performance enabled us to increase our interim dividend by 8%, delivering continued returns for our shareholders.”