Brooks Macdonald has posted record underlying profits of £34.5m for the 12 months to June, while there were "improving flows and solid commercial performance" in its international operations "despite difficult market conditions".
The UK headquartered wealth management firm, with a presence in the crown dependencies, reported that the new Isle of Man office was progressing well and expected to be a source of growth, particularly through the Group's referral agreement with Lloyds Bank.
"International made good progress in the year, returning to positive net flows for two quarters of the year, with net outflows reducing from £59.8m to £25.4m overall for the year", Brooks Macdonald said.
Brooks Macdonald attracted an overall £800m of net inflows from across the group in the 12 months to the end of June, up 4.8% for the full year, according to its annual results.
Just the fourth quarter alone brought in £300m in new cash, reaching an annualised rate of 6.7%, which extended the firm's positive net flows streak for a fifth successive quarter.
The firm's UK investment management saw positive net flows throughout the year, reaching an annualised rate of 8.6% in the final quarter. The "standout performance" was from BM Investment Solutions, the group's business-to-business offering, CEO Andrew Shepherd said.
The net inflows were offset by investment performance losses of 9.6% across its range of services for the year, driven by declining and volatile markets. This brought the firm's FUM down by £800m, or 4.8%, to £15.7bn.
Total dividend increased by 12.7% to 71.0p, in line with the increase in underlying profit before tax, reflecting the board's confidence in the group's prospects. The firm's underlying profit margin was up by 2.3 points over the period, to 28.2%.
"This has been another strong year for Brooks Macdonald - we've delivered higher net flows, we've hit another record for underlying profit margin, and we've increased our full year dividend for the seventeenth consecutive year," said Shepherd.
"Our clients and advisers are facing a challenging macroeconomic and market environment and, as ever, we will support them through these difficult times. Nonetheless, the fundamental long-term opportunity for Brooks Macdonald remains strong despite these challenges."
Chief financial officer Ben Thorpe said that the firm's improved performance was due to increased revenue driven by higher average FUM for the year and the full year impact of the Lloyds Channel Islands acquisition, as well as "the group's continued discipline around costs and financial resources".
Looking to the 2023 financial year, Shepherd said the firm has "a strong pipeline", though he noted that market conditions are resulting in some clients taking longer to commit funds.
In the medium-term, the group's ambition for net flows is 8-10% per year. The firm expects that flows will remain positive despite ongoing short-term market uncertainty affecting client confidence and conversion times.
Brooks Macdonald acquired the IFA firm Integrity Wealth Solutions in May 2022, subject to regulatory approval, with hopes of bringing further scale, capability and management expertise to its private clients business.