Brooks Macdonald Group Plc · LSE:BRK
Brooks Macdonald — Merger or Acquisition (June 2010)
17 slides from Brooks Macdonald's merger presentation, June 2010
Slide 1: Proposed Acquisition of Braemar Group
Proposed Acquisition of Braemar Group Chris Macdonald, Chief Executive Simon Jackson, Finance Director
Slide 2: Disclaimer
Disclaimer Brooks Macdonald Asset Management Limited and Brooks Macdonald Financial Consulting Limited are both authorised and regulated by the Financial Services Authority. This documentation may contain confidential or legally privileged information that is intended for the addressee only. Any vie
Slide 3: Brooks Macdonald Group Plc
Brooks Macdonald Group Plc AIM listed integrated wealth management group with two operating companies: - Brooks Macdonald Asset Management Limited - a discretionary asset management business; - Brooks Macdonald Financial Consulting Limited - a financial advisory and employee benefits consultancy Fou
Slide 4: Braemar Group Plc
Braemar Group Plc Niche fund management business & property management business Funds: Ground Rent, Student Accommodation, UK Agriculture and 9 residential property funds – combined £44m funds under management as at 31 March 2010 SIPP compatible, listed in the CI, open ended Property management busi
Slide 5: Revenue and Profit Growth
Brooks Macdonald Group Plc Revenue Growth (£m) Profit Growth (£000) 3200 25 2800 20 2400 Revenue (m) Profit £000 2000 15 1600 10 1200 800 5 400 0 0 YE YE YE YE YE 6M Dec 6M Dec 6M Dec 6M Dec 6M Dec YE YE YE YE YE 6M 6M 6M 6M 6M June 05 June 06 June 07 June 08 June 09 05 06 07 08 09 June June June Ju
Slide 6: Funds Under Management (£m)
Funds Under Management (£m) 1900 1700 1500 1300 1100 March 05 FUM 900 700 500 300 100 -100 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Dec-09 Date March June 03 June 04 05 June 06 June 07 June 08 June 09 Dec 09 June 05 Total FUM (£m) 279 348 464 638 915 1,181 1,386 1,852 % Increment 27.40 24.73
Slide 7: Transaction Overview
Transaction Overview Transaction Recommended cash offer and management share purchase agreement to acquire entire issued shares of Braemar Consideration 2.25 pence for each Ordinary Share, valuing Braemar at approximately £4million Premium of c.60% to the closing price on the last dealing day prior
Slide 8: Rationale
Rationale Increased scale and distribution in the UK retail fund management market A range of services and niche funds complementary to Brooks Macdonald Increased exposure to the property and alternative asset management sector Strengthening the Group’s investment capabilities with addition of key t
Slide 9: Consistent with growth strategy
Consistent with growth strategy New Business Development – 92 IFAs who regularly introduce business Growth on four fronts; Private (44%), SIPPs (44%), Managed Portfolio Service (MPS) (6%), Charities & Trusts (6%) Acquisitions – Lawrence House October 2009 Regional; Hampshire, Manchester, Tunbridge W
Slide 10: Financials
Financials Braemar have approximately 172m shares in issue and are owned by approximately 320 shareholders. There are a number of small shareholders given this is a “penny stock” and the top 20 shareholders own c.80% of Braemar The three executive directors who own around 28% of Braemar will swap th
Slide 11: Post acquisition strategy
Post acquisition strategy Business and identity of Braemar to continue substantially as it is at present No intention to change underlying management: Brooks Macdonald representation on Braemar’s board Accelerate progress at Braemar through exposure to strong balance sheet and distribution
Slide 12: Appendices
BROOKS MACDONALD Group plc Appendices 12
Slide 13: Awards and commendations
Our awards and commendations have been provided by industry bodies and media including FT Money Management, PAM, AIC and Investment Week 2010 Sunday Times 100 Best Small Companies to work for 2009 Shares Magazine Best AIM Company of the year 2008 Daily Telegraph Best Discretioinary Service 2008 Dail
Slide 14: Corporate Principles & Ethos
Corporate Principles & Ethos Brooks Macdonald is a principled, client-focused, people business. We are a successful growing business that aims to provide and develop high quality, client-focused investment and financial services whilst maintaining the loyalty, determination and team spirit that has
Slide 15: Chris Macdonald and Simon Jackson contact details
Chris Macdonald Chief Executive 111 Park Street Mayfair W1K 7JL T 020 7499 6424 D 0207408 5597 F 020 7499 5718 E [email protected] Simon Jackson Finance Director 111 Park Street Mayfair W1K 7JL T 020 7499 6424 D 0207408 5541 F 020 7499 5718 E [email protected] 15
Slide 16: Advisor contact details
Bruce Garrow Collins Stewart 88 Wood Street London EC2V 7QR W1K 7JL T 020 7523 8000 D 020 7523 8359 F 020 7523 8134 E bgarrow@bcollinsstewartcom Oliver Winters Bankside 1 Frederick’s Place London EC2R 8AE T 020 7367 8888 D 020 7367 8874 F 020 7367 8899 E [email protected] 16
Slide 17: Brooks Macdonald Group plc
BROOKS MACDONALD * Group plc
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