24th Feb 2026 11:06
(Alliance News) - Brooks Macdonald Group PLC on Tuesday raised its half-year payout on the back of revenue growth, despite a significant profit decline due to cost increases.
The London-based wealth manager's pretax profit halved to GBP6.2 million in the six months to the end of December from GBP12.6 million the year prior. This reflected "higher organic investment, M&A and integration costs", Brooks MacDonald said.
Underlying operating costs were up 20% to GBP45.4 million from GBP37.8 million. The firm booked GBP6.8 million in restructuring charges, plus acquisition-related costs of GBP1.2 million and a GBP2.4 million loss on the amortisation of acquired client relationships.
Diluted earnings per share fell to 29.4 pence from 56.2p, however, total funds under management and advice edged up to GBP20.1 billion as of December 31, from GBP19.1 billion on-year.
Revenue rose 12% to GBP58.2 million from GBP51.9 million, as the top line benefitted from higher financial planning and fee income, partially offset by lower interest and transactional income.
As a result, Brooks MacDonald has lifted its interim dividend to 31.0p per share from 30.0p. Its shares fell 3.3% to 1,615.77 pence on Tuesday morning in London.
"We remain focused on delivering our 'reignite growth' strategy and expect to continue to invest organically in initiatives aligned to our strategic priorities, as well as reviewing potential financial planning M&A opportunities," the firm noted.
"We expect H1 revenue trends to continue into H2 and for H2 costs, before the [Financial Services Compensation Scheme] levy, to remain broadly in line with H1. We currently expect the full-year 2026 financial performance to be in line with market expectations."
The company also backed medium term targets for positive annualised net flows of 5% and business-as-usual cost growth below 5%.
It plans to update on third-quarter FUMA on April 15.
Chief Executive Andrea Montague said Brooks MacDonald maintained "good momentum across the business".
"We've established Brooks Financial and completed the integration creating a scalable, whole of market financial planning capability. We've made deliberate investments in the business to drive sustainable growth and I'm confident our capability in investment management and distribution positions us for the future," Montague added.
By Holly Munks, Alliance News reporter
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