Brooks Macdonald Group (BRK) H1 2026 (Q&A) earnings summary

Executive summary

• Returned to positive net flows for the first time since H2 2023, with FUMA rising 16% year-over-year to £20.1bn and revenue up 12% to £58.2m, supported by strong investment performance and technology-driven efficiency gains.

• Achieved double-digit growth in model portfolio services (MPS) and 50% growth in business process services (BPS), with significant expansion in financial planning income driven by acquisitions.

• Integration of Brooks Financial completed, delivering over £1m in annualised cost synergies and 98% client retention.

• Strategic investments in digital, AI, and product innovation enhanced customer service, operational efficiency, and future growth prospects.

Financial highlights

• FUMA reached £20.1bn (up 16% year-over-year), with net inflows of £2m reversing prior outflows.

• Revenue increased 12% to £58.2m; underlying profit before tax fell 12% to £13.6m, with a margin of 23.4%.

• Dividends per share increased to 31.0p; nearly £11m returned to shareholders via dividends and buybacks in H1.

• Financial planning income more than doubled to £13.6m, reflecting recent acquisitions.

Outlook and guidance

• Investments in transformation and efficiency expected to continue in H2, but at a lower level than H1.

• H1 revenue trends expected to continue into H2; costs (before FSCS levy) to remain broadly in line with H1.

• Deferred M&A consideration of £10 million expected in H2.

• Targeting a 20% increase in IFAs served over the next three years and annualised net inflows of +5%.