Brooks Macdonald Group PLC Proposed efficiency improvements (7431M)
10 January 2019 - 8:10PM
UK Regulatory
TIDMBRK
RNS Number : 7431M
Brooks Macdonald Group PLC
10 January 2019
10 January 2019
BROOKS MACDONALD GROUP PLC
Streamlining and simplifying our business
Efficiency improvements to drive increased margins in the
medium-term
Brooks Macdonald Group plc (the "Group"), the AIM listed
investment management group, today announces proposed efficiency
improvements, predominantly in administration and IT areas.
As announced with the Group's annual results in September 2018,
a key strategic priority is driving effectiveness and efficiency in
the business, improving processes and building a scalable operating
model to support future growth and deliver medium-term margin
improvement. The measures announced today are a material step in
delivering that commitment.
The proposed changes will help the Group respond to clients' and
advisers' evolving needs, positioning it to deliver an improved,
more consistent client experience and make it easier for advisers
to do business with the firm. The Group has identified a range of
opportunities to streamline and remove duplication from core
processes - for example, by centralising client account opening and
client reporting.
The changes will result in a material headcount reduction,
predominantly in administration and IT areas. The Group is today
informing staff of its proposals, which will be subject to
consultation. The Group's service offering and locations are
unaffected by these changes.
The actions are expected to result in a net headcount reduction
of c.50 and an annualised cost reduction of c.GBP4m, incremental to
the impact of the Group's continuing focus on cost discipline. The
Group expects the cost of the changes to be up to c.GBP3m, a
non-recurring expense which it intends to exclude from its reported
underlying profit.
The Group will release its Half Year Trading Update and
Quarterly Announcement of Funds Under Management on 24 January
2019, when it will provide further guidance on expected performance
in FY19 and beyond.
Caroline Connellan, Chief Executive of Brooks Macdonald
commented:
"As part of the next phase of our strategy, as outlined at our
annual results, we are focussed on driving medium term margin
improvement as well as making Brooks Macdonald easier to deal with
for both clients and advisers. The changes we are announcing will
make us more responsive to changing client and adviser needs, and
help deliver greater value from our future growth.
"We regret the need to make redundancies and those people who
leave the business will do so with both our thanks for their
contribution and our best wishes."
This announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR").
Enquiries to:
Brooks Macdonald Group plc www.brooksmacdonald.com
Caroline Connellan, Chief Executive 020 7499 6424
Ben Thorpe, Finance Director
Peel Hunt LLP (Nominated Adviser and Broker)
Guy Wiehahn / Adrian Haxby 020 7418 8900
MHP Communications
Reg Hoare / Simon Hockridge / Charlie Barker 020 3128 8540
Notes to editors
Brooks Macdonald Group plc, through its various subsidiaries,
provides leading investment management services in the UK and
internationally. The Group, which was founded in 1991 and began
trading on AIM in 2005, had discretionary funds under management
(FUM) of GBP12.8bn as at 30 September 2018.
Brooks Macdonald offers a range of investment management
services to private high net worth individuals, pension funds,
institutions, charities and trusts. The Group also provides
financial planning as well as offshore investment management and
acts as fund manager to regulated OEICs providing specialist funds
in the property and structured return sectors.
The Group has thirteen offices across the UK and the Channel
Islands including London, East Anglia, Hampshire, Leamington Spa,
Manchester, Taunton, Tunbridge Wells, York, Scotland, Wales,
Jersey, and Guernsey.
LEI: 213800WRDF8LB8MIEX37
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END
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