Brooks Macdonald adds further £5.5m to Spearpoint legacy pot; FUM climbs 25.8%

Chris Macdonald steps down from board

Aim-listed Brooks Macdonald has reported a 25.8% year-on-year increase in total discretionary funds under management (FUM), reaching £11.7bn at 31 December 2017, but said statutory profits fell due to a £5.5m increase in the provision for resolving its Spearpoint legacy matters.

The group said the rise in FUM led to a 10.9% rise in revenues from £44m in the half-year ended 31 December 2016 to £48.8m or the same period in 2017. However, statutory profit before tax fell from £8.1m in 2016's second half to £600,000 in the latter half of 2017. Statutory earnings per share was also down from 48.5p to -3.5p as the wealth manager said it had set a further £5.5m aside for resolving its legacy matters, while there was "a £1m increase in fair value of Levitas deferred consideration in light of strong net inflows into the funds. In July 2017, the group revealed it ha...