Brooks Macdonald jumps 7% on forecast busting trading update

The share price of Brooks Macdonald Group jumped more than 7% after the company put out an optimistic trading statement.

Brooks Macdonald share price has more than trebled over the past 18 months. Its first quarter results were extremely strong, with revenue, pre-tax profits and earnings per share all sharply higher. The company also begun paying dividends for the first time.

A statement released this morning reported this trend had continued. 'The group has benefited throughout the period from an encouraging and continuing inflow of new business. The group's results to 30 June 2010 will be ahead of market expectations.'

Collins Stewart was also optimistic about the future earnings for the wealth manager as it reiterated its 'buy' rating on the firm. The broker estimated that the company's assets under management, set to be announced next week, will go through the £2 billion barrier to roughly £2.15 billion, representing a 55% rise over the twelve months.

Brooks Macdonald group, which operates an investment management and financial planning arms, recentlyacquired property specialist Braemar and has made a string of hires.

Amongst the most recent fund manager hires were Colin Barrett, previously of Heartwood Wealth Management, for its Tunbridge Wells office. It has also boosted the Edinburgh branch with the hire of Scott Lothian from Adam & Co. 

Collins Stewart said the Bramear acquisition will not bring material benefits in the next 12 months but should be beneficial over the longer-term. It added that the company will focus on organic growth this year while its balance sheet remains strong.

'We anticipate further cash generation in 10/11 which will support continued dividend growth.'

At 9.45am, Brooks Macdonald shares were up 7.10%, or 55p, to 830p.