reports
Hybridan Small Cap Feast - 07 Mar 24
7th March 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: TMT Acquisition (TMTA.L) has left the Standard Segment of the London Stock Exchange. What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: Change of Market: Banquet Buffet*** Brooks Macdonald Group £16.275 £267.6m (BRK.L) Th...
- Paul Bryant
FUM up 4.3% in quarter, profit forecast upgraded a touch
FUM rose by 4.3% in Q2-FY24 from £16.9bn on 30 Sep 23 to £17.6bn on 31 Dec 23. This is on track to meet our end-FY24 (30 Jun 24) FUM target of £18.4bn (+9% y-o-y growth). Investment performance was strong, contributing £821m to FUM or +4.9% of opening FUM. Net flows remained subdued at -£98m (Q1: -£70m). We remind readers that in Oct 23, BM announced a programme to reduce costs by around £4m per year, with one-off FY24 restructuring costs of up to £3.0m. This followed extensive technology and d...
- Paul Bryant
Tech investments pave way for staff cuts & margin upside
Brooks Macdonald has announced it intends to reduce staff complement by 55, around 10% of its workforce of just over 500. It expects to save £4m of costs per year from the changes, but it will incur restructuring costs of up to £3.0m, to be recognised in the current FY24. We update our forecasts and valuation as a result of these changes, primarily: - Adding ‘one-off’ restructuring charges of £3m to FY24 which reduces statutory profits but not ‘underlying’ profit. - Reducing staff costs from FY...
- Paul Bryant
Well-flagged sluggish quarter but price fall looks over-done
FUM increased marginally over Q1 of FY24 from £16.85bn on 30 Jun 23 to £16.86bn on 30 Sep 23. As flagged in the FY23 results release of 14th Sep 23, net flows were slightly negative for the quarter at -£70m, although BM has indicated it expects positive flows for the whole of FY24. It’s important to keep this small negative quarterly net flow number in context: it follows nine consecutive quarters of positive flows (achieved despite difficult market conditions) and a period where BM recorded a ...
- Paul Bryant
Revenue & profit beat forecast but outlook cautious
FUM closed FY23 (30 Jun 23) on £16.8bn, 7.5% up y-o-y (30 Jun 22: £15.7bn). This was the second-highest growth rate among adviser-channel-focused wealth management peers. Net flows totalled +£817m (FY22: +£785m), investment performance added +£363m, 2.3% of opening FUM, above the benchmark MSCI PIMFA balanced index which returned 1.6%. BM has flagged a healthy pipeline for FY24, although investor sentiment is still subdued. We forecast FUM, revenue and underlying PBT growth of 10%, 2%, and 3% r...
- Paul Bryant
FY23 results justify recent rise in share price
FUM closed FY23 (30 Jun 23) on £16.9bn, 7.5% up y-o-y (30 Jun 22: £15.7bn) and 0.3% up over Q4 (31 Mar 23: £16.8bn). Q4’s net FUM flow of +£97m continues BM’s impressive run of positive net flows (now spanning nine consecutive quarters) during a period of difficult market conditions and investor nervousness. FY23 net flows totalled +£817m (FY22: +£785m). BM has flagged a healthy pipeline for FY24, although investor sentiment is still subdued. Andrea Montague has been appointed CFO and Executive...
Brooks Macdonald Group: 1 director
A director at Brooks Macdonald Group sold 2,766 shares at 1,990p and the significance rating of the trade was 55/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clea...
- Paul Bryant
Impressive consistency in strength of net flows
BM has recorded yet another quarter of positive net flows: +£373m in Q3 of FY23 (to 31 Mar 23), its eighth in succession. This is a hugely impressive achievement considering the last five of these quarters was a period characterised by market falls, economic uncertainty, and investor nervousness – an environment more typically associated with depressed flows. BM’s net flows have now been above peer group median levels since calendar Q4 of 2021. Our fundamental valuation remains at 3150p per sha...
Hybridan Small Cap Feast - 02 Mar 23
02 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv...
- Paul Bryant
Forecasts up on positive outlook, dividend +8%
Brooks Macdonald (BM) recorded a solid H1-23 (to 31 Dec 22) with FUM up 4% to £16.2bn, from £15.7bn on 30 Jun 22. Net inflows totalled +£347m and investment performance +£212m (+1.4% compared to -0.3% of the benchmark MSCI PIMFA Private Investor Balanced Index). A 7th consecutive quarter of positive net flows was recorded, with impressive resilience through the 2022 bear market, pointing to very strong fundamentals when it comes to attracting and retaining client assets. In calendar-2022, BM’s...
- Jason Streets
Hardman & Co Insight - Asset managers had a poor 2022
Asset managers had a poor 2022: the S&P Composite 1500 Asset Management Index was down 22% and, according to the Investment Company Institute (ICI), worldwide mutual funds fell by 20%, from $76tr to $60tr. When bond and equity markets fall, the results are unlikely to be pretty: with revenues trending down and multiples contracting, there is a double whammy to contend with. So how do valuations shape up now, after a bullish start to the new year? The first chart is my favourite chart of asset m...
SDR SCHRODERS PLC
CLIG CITY OF LONDON INVESTMENT GROUP
RAT RATHBONE BROTHERS PLC
IPX IMPAX ASSET MANAGEMENT GROUP PLC
LIO LIONTRUST ASSET MANAGEMENT PLC
FEN FRENKEL TOPPING GROUP PLC
MTW MATTIOLI WOODS
HL. HARGREAVES LANSDOWN PLC
A2PG8B MAN GROUP PLC
PCFT POLAR CAPITAL GLOBAL FINANCIALS TRUST
BRK BROOKS MACDONALD GROUP PLC
ASHM ASHMORE GROUP PLC
TAM TATTON ASSET MANAGEMENT
IHP INTEGRAFIN HOLDINGS
AJB AJ BELL
MNG M&G PLC
HL HARGREAVES LANSDOWN
- Paul Bryant
Another solid quarter, guidance confirmed
Brooks Macdonald (BM) continued to build momentum in Q2 of FY23 (to 31 Dec 22), with FUM increasing by 4.5% (+£0.7bn) over the quarter to £16.2bn (end of Q1: £15.5bn). BM chalked up its 7th consecutive quarter of positive net flows of £156m, an annualised rate of 4% of opening FUM. Investment performance contributed £546m to the FUM increase (3.5% of opening FUM, in line with the benchmark MSCI PIMFA Private Investor Balanced Index - capital only). Management have confirmed that underlying prof...
- Paul Bryant
6th consecutive quarter of positive FUM flows
FUM decreased 0.9% over Q1 of FY23 from £15.7bn on 30 Jun 22 to £15.5bn on 30 Sep 22. Impressively, a 6th consecutive quarter of net inflows was recorded (+£191m), achieved despite the last three quarters (Jan – Sep 22) being periods of significant volatility and market falls, which often correlate with weakening flows for investment managers. We remind readers that BM was one of the strongest performers in attracting and retaining client funds during calender-H1 of 2022. Our FUM forecast for t...
- Paul Bryant
FY22 profit and dividend up 13%, fundamental value rises
In July we highlighted how net FUM inflows in FY22 (+£785m), were a sign of strategic strength, and emphasised the impressiveness of Q3 and Q4 flows (+£179m and +£280m) during a period of sharp market falls, which often correlates with weakening flows for investment managers. Today, with more peer data available, we re-emphasise this, and highlight that BM has been one of the strongest performers in attracting and retaining client funds. Also, with the release of FY22 results, BM has demonstrat...
- Paul Bryant
Net inflows strengthen again, but market falls reduce FUM
Two themes jump out at us at the close of FY22 (to 30 Jun 22). First, in the first full FY of CEO Andrew Shepherd’s tenure it has been a year of strategic strengthening, characterised by a return to consistent net inflows, following the ‘restructuring’ years of FY20 and FY21, which suffered net outflows. Most impressive now are the net inflows in Q3 and Q4, periods of sharp market falls, which can coincide with net outflows for investment managers. Second, in absolute terms, investment performa...
- Paul Bryant
FUM inflow momentum continues in turbulent markets
Amidst significant market volatility - which often coincides with net outflows for asset and wealth managers - BM impressively recorded £0.2bn of net Funds Under Management (FUM) inflows during Q3 of FY22 (Jan - Mar 22). This was its fourth consecutive quarter of positive net flows, and indicative of continuing strong momentum in the business. We have made a small ‘mark to market’ adjustment to our forecasts (FY22 estimate reduces from £17.2bn to £17.1bn, FY23 from £18.8bn to £18.7bn), but rema...
- Paul Bryant
Ambitious growth strategy builds on 30-year track record
We initiate today on Brooks Macdonald. Prospects for revenue and profitability growth look encouraging as we examine a number of key factors including: Management's ambitious organic and acquisitive growth plans. BM is operating in a huge market with substantial medium-to-long-term tailwinds. It has a track record of delivering superior investment returns, which is one of the most important factors used by financial advisers when selecting an investment manager. FUM growth has been solid in r...
- Paul Bryant
Q1 AUM ahead of forecast
AUM grew by £4.1bn over Q1 of FY22 (1 Oct 21 – 30 Sep 22), reaching £41.4bn on 31 Dec 21, 11% up over the quarter and 64% up y-o-y (AUM on 31 Dec 20 £25.2bn). Particularly pleasing is the continuation of strong net AUM inflows, which totalled £2.0bn for the quarter. Growth from market movements and investment performance was also very strong, totalling £2.1bn. Impax’s quarterly growth is ahead of our forecasted trajectory for FY22 (average quarterly AUM growth of just under £2bn, with AUM reac...
POLR POLAR CAPITAL HOLDINGS
BRK BROOKS MACDONALD GROUP PLC
TAM TATTON ASSET MANAGEMENT
RIV.L RIVER AND MERCANTILE GROUP PLC
LIO.L LIONTRUST ASSET MANAGEMENT PLC
RAT.L RATHBONES GROUP PLC
STJ.L ST. JAMES'S PLACE PLC
HL..L HARGREAVES LANSDOWN PLC
JUP.L JUPITER FUND MANAGEMENT PLC
ASHM.L ASHMORE GROUP PLC
BRW.L BREWIN DOLPHIN HOLDINGS PLC
QLT.L QUILTER PLC
- Paul Bryant
Another leap in scale and outlook still strong
FY21 (to 30 Sept) saw Impax continuing to scale at a pace unmatched by any UK-listed asset manager, and the broader sustainable investing market. AUM reached £37.2bn, 84% up from 30 Sep 20 (£20.2bn). By 31 Oct 21 AUM grew another 4.6% to £38.9bn Financial results for FY21 were hugely impressive with revenue up 64% to £143.1m (higher than our previous forecast of £139.4m) and adjusted operating profit* up 140% to £55.8m (again higher than our previous forecast of £49.7m, and providing evidence ...
- Paul Bryant
Inflows main contributor to 84% AUM growth in FY21
Impax continues to scale at a pace unmatched by UK-listed asset managers. AUM grew to £37.2bn on 30 Sep (end of FY21), 84% up on the FY20 close of £20.2bn. Net inflows accounted for £10.7bn (63%) of the increase, with market movements accounting for £6.4bn (37%). Q4 inflows of £1.5bn show continuing impressive momentum in winning new business. Over FY21, average quarterly inflows were £2.6bn, 204% up on the £865m average of FY20, which was in turn 251% up on the FY19 average of £345m. With t...
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