Brooks Macdonald Group (BRK) H2 2024 earnings summary

Executive summary

• Underlying EPS increased by 6.6% year-over-year, with revenue up 3.6% and FUM rising 7% to £18.0bn, driven by strong MPS and BPS momentum despite net outflows.

• Nineteenth consecutive annual dividend increase, with dividend per share up 4% to 78p.

• Strong capital and cash position, with cash and equivalents at £74.7m, up £21.3m from prior year.

• Streamlined business through sale of international operations and Defensive Capital Fund, focusing on UK core activities.

• Leadership transition with new CEO and CFO appointments to drive strategy.

Financial highlights

• Revenue increased 3.6% to £128.3m, with underlying profit before tax up 12.5% to £34.1m and margin improving to 26.6%.

• Underlying EBITDA rose 7.8% to £35.8m; statutory profit before tax fell to £11.6m due to an £11.6m goodwill impairment.

• Cash balance at year-end was £74.7m, with £55.9m as free cash surplus.

• Achieved £4m in annualised cost savings through efficiency measures and headcount reduction.

• Platform MPS FUM reached £4.4bn, growing fivefold since 2020.

Outlook and guidance

• Targeting 5% annualised net flows and underlying cost growth below 5% per annum.

• Expecting return to positive net flows later in FY25, with interest income projected at £7-8m and capex of £4-5m.

• International business sale to complete by March 2025, with a c.£2m impact on group underlying profit.