Brooks Macdonald Group reported record funds under management and advice (FUMA) of GBP 21.7 billion in the second half of 2026, up 14% year-over-year, as the wealth manager posted a 6% rise in underlying earnings per share and lifted its full-year 2027 outlook.
Total funds under management (FUM) increased 17% to GBP 19.3 billion, while assets under advice (AuA) rose to GBP 5.7 billion from GBP 5.3 billion a year earlier. Net inflows turned positive at GBP 226 million, reversing a six-quarter streak of outflows and marking the first positive reading since 2023. Underlying profit before tax reached GBP 29 million, with revenue growth of 6% and underlying EPS up 6% to 137.9 pence.
The company recommended a final dividend of 52 pence per share, bringing the full-year payout to 83 pence, a 2.5% increase, and extending its dividend growth streak to 21 consecutive years. Dividend yield stood at 5.58%, while the stock rose 1.53% to $1,492.50, near its 52-week high of $1,865 and well above its low of $1,240.
Managed Portfolio Service (MPS) revenue climbed 16% to GBP 16.7 million, with total MPS FUM up 30% to nearly GBP 9 billion. Platform MPS FUM increased 35%, generating over GBP 900 million in net inflows at an annualized growth rate of 15%. British Portfolio Service (BPS) FUM rose 9%, while financial planning revenue grew 10% on a like-for-like basis, contributing 25% of group revenue with a margin of 52.8 basis points.
Cost discipline remained a priority, with like-for-like underlying costs down 3% and total cost savings of GBP 8.3 million achieved through integration synergies, organizational restructuring, and non-staff savings. Organizational restructuring costs totaled GBP 5.1 million, delivering GBP 5 million in annualized savings. Total investments in product, proposition, digital, and AI initiatives reached GBP 9.1 million, with capitalized investments of GBP 12.6 million, primarily incurred in the first half.
Brooks Macdonald expects full-year 2027 performance to marginally exceed current consensus, with organic investment in FY 2027 falling to high single-digit millions. Net deferred consideration from prior transactions is projected at GBP 10 million to GBP 15 million. Medium-term targets include annualized net inflows of 5% and business-as-usual cost growth below 5%, while the managed portfolio service market is forecast to expand from GBP 200 billion to GBP 400 billion by 2030.
The company ended the year with GBP 25 million in cash and liquid assets and GBP 6 million in excess capital above regulatory and internal buffers. Brooks Macdonald’s market capitalization stood at $311 million, with a price-to-earnings ratio of 33.19.
