DFM, wealth manager and Chartered Financial Planner Brooks Macdonald has reported an 11.1% increase in underlying profit before tax to £23m for its financial year ending 30 June 2020.

In its results, Brooks said that the company has been through a period of change “emerging a more robust business ready to capitalise on the significant growth opportunities we see ahead.” As part of this plan, the firm said it is looking for further acquisitions.

The underlying profit margin was 21.2%, a 1.6% rise on the previous financial year.

Total discretionary funds under management also rose 4.1% to £13.7bn (2019: £13.1bn).

Group revenue rose 2.7% to hit a record £108.6m (2019: 105.7m).

Whilst many financial services groups have reduced or scrapped dividends during the Coronavirus pandemic, Brooks increased their total dividend by 3.9% to 53.0p reflecting “the board’s continued confidence in the strength of the underlying business and commitment to a progressive dividend policy.”

The wealth manager and Chartered Financial Planner made several acquisitions during its last financial year. In November 2019 Brooks snapped up Edinburgh-based firm Cornelian Asset Management in a £39m deal. 

Whilst Brooks is predominantly known for its DFM and investment management business, it has a growing Financial Planning division and is a Chartered Financial Planning Firm.

Just before the end of its financial year in June, Brooks bought the Channel Islands wealth management and funds business of Lloyds Bank International for £9.63m. The move aimed to transform its international business and increased international funds under management by two-thirds to £2.5bn. 

Caroline Connellan, CEO of Brooks Macdonald, said: “I am delighted with our strong financial performance and the continued disciplined execution of our strategy, particularly given the context of a challenging year with the unprecedented backdrop of Covid-19. We increased our profit margin, delivered record revenue and underlying profit, and announced two high-quality acquisitions. This has been made possible by the actions we have taken over recent years as well as our “protect to thrive” approach through Covid-19, allowing us to operate successfully in this uncertain and everchanging world. I would like to thank the advisers we work with, and our clients, for their continued support and our people for their dedication and hard work.

“We are now nearing the completion of the strategy we announced in 2017, having done what we said we would do and delivered the outcomes we promised. We are now a more robust business, confident in our vision for Brooks Macdonald as the leading investment manager for intermediaries, leveraging our strengths. We are working to deliver best-in-class adviser experience and client service levels, to complement our compelling investment proposition and robust investment performance.

“The short-term outlook is uncertain, driven by both the progress of the pandemic and events surrounding Brexit. Nonetheless, the fundamental opportunity for Brooks Macdonald remains strong, we are uniquely positioned in the market and confident about what the future holds.”