Brooks Macdonald has announced that it will dispose of its property management business Braemar Estates.
It will be acquired by Rendall & Rittner for £1.9 million, which will be paid in three tranches with half of it to be paid on completion of the disposal.
The wealth management firm took the decision to sell Braemar estates following a review.
Chief executive Caroline Connellan commented: ‘The disposal of our property management business will enable us to focus more closely on our core offerings and is expected to contribute over time to improved margins.’
The announcement was accompanied by full-year results which showed a 25.9% increase in discretionary funds under management to £10.5 billion year on year.
The increase was driven by £1 billion in net new business and investment performance of £1.2 billion. Majority of the funds, £6.5 billion, are in the firm’s bespoke portfolio service, with some £1.2 billion in its model portfolios.
In the 12 months to 30 June 2017, Brooks Macdonald also recorded an 18.6% rise in underlying profit before tax to £18.4 million on a revenue of £91.7 million, up from £81.4 million year-on-year.
Breamar Estates represented 3.2% of revenue and had net liabilities of £500,000.
The board proposed a final dividend of 26p for the year, taking the total up to 41p.
Connellan said: ‘As we look to the future and build on our success to date, my focus is on positioning the business to capture the significant growth opportunities open to us. We will continue to enhance the services we offer and improve business efficiency while responding to the rapidly changing competitive and regulatory environment, and the increasing influence of technology.
‘I am confident that these actions will result in a much stronger platform to deliver sustainable long-term growth, upholding our commitment to protect our clients' best interests and supporting our relationships with key intermediaries.’
Brooks Macdonald also revealed that it will close its Guernsey-based back office in September which will result in redundancies following the consolidation of its back office functions into one in the City.