Brooks Macdonald has just announced its half-year results for the six months ending 31 December 2024

Brooks Macdonald's funds under management (FUM) rose by 0.7 per cent from £15.1 billion ($19.1 billion) to £15.7 billion in the six months ending December 2024.

The firm delivered gross inflows of £1.1 billion in the first half of its financial year, including net inflows to its MPS Platform business at an annualised rate of 13 per cent. However, gross outflows were elevated during the period at £1.4 billion, driven by the backdrop of market volatility and uncertainty leading up to the budget affecting client behaviour. This resulted in net outflows for the period of £0.3 billion. Investment performance also added £0.4 billion to the closing FUM, the firm said in a statement.

Revenues, from continuing operations, decreased by 2.6 per cent, driven by lower interest income as market rates declined. However, expense management drove underlying costs down by 2.9 per cent. This led to an underlying profit margin of 29.9 per cent, compared with 29.6 per cent previously.

On an underlying basis, the profit before tax from continuing operations was £15.5 million, down £0.3 million on the prior period. Net assets increased by 6.1 per cent to £156.6 million at the end of the period, demonstrating the group's robust financial position.

“Our strong discipline on costs led to an increase in our underlying profit margin and the board have announced an interim dividend of 30p, up 3.4 per cent year-on-year, continuing our track record of 19 years of dividend increases,” Andrea Montague, CEO, said.

“The completion of the sale of Brooks Macdonald Asset Management (International) Limited ("BMI") sets us up firmly as a UK-focused wealth manager. The acquisition of three financial planning businesses has broadened our client reach increasing our UK client numbers by around 15 per cent,” he added.

Outlook for full year
There is uncertainty regarding the performance of the UK economy against the backdrop of the proposed changes announced in the October budget, the firm said. The election of US President Donald Trump in November and the full effects of the subsequent tariff actions and push for a peace settlement in Ukraine remain to be seen. 

The group anticipates that its full-year performance will be in line with its expectations. As previously guided, the group plans to achieve positive net flows later in the year.

The group also expects capital expenditure to be around £10 million for 2025, compared with £5 million previously guided, reflecting investment in the business to deliver on its growth strategy, including property fit-out costs for office relocations. As previously guided, interest income is expected to be £7 million to £8 million for the year. For the medium term, the firm is targeting 5 per cent annualised net inflows and underlying cost growth of less than 5 per cent per annum.