Brooks Macdonald Hits Record Assets Despite Statutory Profit Slump

Brooks Macdonald Group (LON: BRK), the UK wealth manager offering discretionary investment management and financial planning, published full-year results earlier today covering the year to 30 June, completing its two-year “Reignite Growth” turnaround plan. Total funds under management and administration rose 14% to a record £21.7bn, and the group returned to net inflows of £226m, reversing £396m of outflows the year before.

Shares traded up to 1500p in early dealing today, having closed at 1470p yesterday, a rise of around 2%, leaving the stock within a 52-week range of 1240p to 1807p.

Revenue grew 6% to £118.1m, but underlying profit before tax, which strips out one-off items, was broadly flat at £29.0m against £28.9m a year earlier. Statutory profit before tax collapsed to £3.2m from £17.5m, as one-off strategic transformation and restructuring charges jumped to £25.8m from £11.4m. Statutory diluted earnings per share fell to 15.1p from 71.4p, even as underlying diluted earnings per share rose 6% to 137.9p.

Despite the statutory profit squeeze, the board raised the total dividend 2.5% to 83.0p, extending a run of 21 consecutive years of dividend growth. Chief executive Andrea Montague said: “FY26 was a year of strong progress as we completed a two-year period of transformation, investment and organisational restructuring to Reignite Growth. We returned to positive annual net flows, with growing momentum across the business.” Platform MPS assets grew 35% to £8.0bn and BPS assets rose 9% to £9.3bn, while Brooks Financial, the group’s advice arm, grew revenue to £28.6m from £17.1m, now around a quarter of group revenue.

Management guided FY27 to come in marginally ahead of current market expectations, with organic investment spend set to fall sharply now the transformation phase has concluded.