Brooks Macdonald Group reported a record £21.7 billion in Funds Under Management and Advice (FUMA) for the second half of 2026, up 14% year-over-year, as the group posted underlying profit before tax of £29 million and underlying earnings per share of 137.9 pence, a 6% increase.
Total Funds Under Management rose 17% to £19.3 billion, driven by market and investment performance of £2.5 billion, while Assets Under Advice increased to £5.7 billion from £5.3 billion a year earlier. Net inflows turned positive at £226 million, the first positive reading since 2023 and a more than £600 million improvement versus FY2025, with platform MPS accounting for over £900 million of inflows. Revenue grew 6% overall, with MPS revenue up 16% to £16.7 million and financial planning revenue rising 10% on a like-for-like basis, now representing 25% of group revenue.
Underlying costs fell 3% on a like-for-like basis, delivering total savings of £8.3 million, including £1.3 million from integration synergies, £3.3 million from organizational restructuring, and £1 million in non-staff cost reductions. The group’s cash position stood at £25 million, with operating cash flow post-tax of £26.7 million and fees from transitioning client fee payments from quarterly to monthly totaling £9.3 million. Brooks Macdonald returned nearly £16 million to shareholders in the current year via dividends and buybacks, with total capital returned over the past two years approaching £35 million.
Investments in product development, digital initiatives, and AI amounted to £9.1 million, while restructuring costs reached £5.1 million and capitalized expenses totaled £12.6 million, primarily in H1 2026. Deferred consideration from prior transactions, including Lucas Fettes and LIFT, amounted to £19.4 million.
For FY2027, management expects performance to be marginally ahead of current consensus, with organic investment declining materially to high single-digit millions. Deferred consideration of £10 million to £15 million is anticipated, while medium-term targets include annualized net inflows of 5% and business-as-usual cost growth below 5%. The managed portfolio service market is projected to expand from £200 billion to £400 billion by 2030.
The group also raised its final dividend by 2.5% to 52 pence per share, bringing total dividends to 83 pence per share, and maintained a dividend yield of 5.58%. The stock closed 1.53% higher at £1,492.50, near its 52-week range of £1,240 to £1,865. Brooks Macdonald trades on a P/E ratio of 33.19 with a market capitalization of £311 million.
