Brooks Macdonald Group (BRK) H2 2025 earnings summary

Executive summary

• Achieved record FUMA of £19.2 billion, reflecting strong execution of a UK-focused strategy and scalable financial planning business.

• Revenue grew 4.6% year-over-year while maintaining flat AUA costs, supporting operational efficiency.

• Strategy to 'Reignite Growth' delivered, with the group reshaped as a UK-focused wealth manager and three financial planning acquisitions completed.

• Strong investment performance, launch of new products, and move from AIM to the Main Market have built momentum.

• Integration of three acquisitions completed, with synergies of £1 million expected and the Brooks Financial brand launched.

Financial highlights

• FUMA increased 17% year-over-year to £19.2bn, driven by acquisitions and market performance.

• Revenue rose 4.6% to £111.6m compared to £106.7m in 2024.

• Underlying profit declined to £28.9m from £30.3m, with margin at 25.9% (down from 28.4%).

• Total dividend increased to 81.0p from 78.0p.

• Net flows showed sequential improvement, with best quarterly performance in two years.

Outlook and guidance

• Medium-term targets include 5% annualised net inflows and BAU cost growth below 5%.

• FY26 investment expected at similar levels to FY25 (~£15 million), focused on digital, AI, and product enhancements.

• Share buyback of up to £10m remains in place, with £8.1m deployed as of August 2025.

• Continued disciplined approach to M&A, prioritizing EPS accretion and attractive returns.

• Anticipates further transition of advised-only AUA to advised and managed, though progress is expected to be gradual.