Brooks Macdonald eyes potential M&A despite profit dip in H1 2025

Brooks Macdonald Group has announced its fiscal results for the archetypal fractional of 2026, posting an underlying nett earlier taxation of £13.6m, down 12% from £15.5m reported successful the aforesaid play past year.

Revenue accrued by 12%, reaching £58.2m, chiefly owed to maturation successful fiscal readying and interest income.

This was partially offset by reduced involvement and transactional income.

Total funds nether absorption and proposal grew to £20.1bn, up from £19.1bn astatine the extremity of June 2025.

Of this total, £17.8bn was managed directly, portion £2.3bn represented advised-only assets.

Net inflows amounted to £2m, reversing nett outflows of £262m recorded successful the archetypal fractional of 2025.

This marks the archetypal clip since the 2nd fractional of 2023 that the institution has reported affirmative nett flows for a half-year period.

Underlying costs, excluding acquisitions and nett concern income, roseate by 3% to £45.4m.

Including acquisition-related costs, full underlying costs accrued by 20% from the erstwhile year’s £37.8m.

The committee has projected an interim dividend of 31.0 pence per share, a 3% increase.

The radical besides delivered a accordant year-on-year double-digit maturation successful managed portfolio service, which it launched past year.

Commenting connected the outlook, the institution said: “We stay focused connected delivering our ‘Reignite Growth’ strategy and expect to proceed to put organically successful initiatives aligned to our strategical priorities, arsenic good arsenic reviewing imaginable fiscal readying M&A opportunities.”

Strategically, Brooks Macdonald continued enactment connected its ‘Reignite Growth’ initiative, with investments successful integer infrastructure, AI applications and merchandise development.

The institution has begun utilizing AI to chopped down connected administrative workload and restructured parts of the organisation, resulting successful annualised savings of £3m.

The radical reported ongoing double-digit maturation successful Managed Portfolio Service assets and a 4% summation successful Bespoke Portfolio Service assets.

There was besides a astir 50% simplification successful nett outflows from bespoke portfolios, an 8% emergence successful high-net-worth clients, and much advisers utilizing aggregate bespoke services.

Following the constitution and integration of Brooks Financial, annualised outgo efficiencies exceeded £1m and lawsuit retention held astatine 98%.

For the remainder of the year, Brooks Macdonald expects gross patterns from the archetypal fractional to proceed into the 2nd half.

Costs earlier accounting for the FSCS levy are expected to stay akin to those seen earlier this year.

The institution anticipates full-year results volition lucifer existent marketplace expectations and maintains its medium-term goals for nett inflows and outgo growth.