Brooks Macdonald's first-half profit exceeded expectations, but revenue fell short of forecasts

2026-02-24 09:37:23

Investing.com - Brooks Macdonald announced its first-half results for fiscal year 2026 on Tuesday, showing profits exceeding expectations but revenue falling short of forecasts.

The wealth management company reported a basic pre-tax profit of £13.6 million, down 12% year-over-year, but 5% above market consensus. The profit beat was mainly due to lower-than-expected costs, with the company’s cost management measures taking effect earlier than anticipated.

Revenue was £58 million, up 12% year-over-year but 3% below market consensus. The average return on managed assets was 50.6 basis points, down from 59.4 basis points in fiscal year 2025.

The decline in returns appears to be due to reduced trading income in the business performance services division.

Excluding trading impacts, revenue decreased 5% year-over-year, while costs increased 3% year-over-year.

The company’s profit margin for the period was 23.4%.

Earnings per share were 64.2 pence, down 7% year-over-year but 4% above expectations. The company announced a interim dividend of 31 pence per share, up 3% year-over-year, in line with expectations.

Brooks Macdonald’s cash position decreased from £54 million to £27 million, due to increased capital expenditures, investment spending, and M&A activities. The company’s capital surplus fell from £15.6 million in fiscal year 2025 to £12 million.

The wealth management firm stated that it expects full-year performance for 2026 to meet market expectations. The company anticipates that the return trends seen in the first half will continue into the second half, with costs in the second half expected to remain roughly flat compared to the first half before the financial services compensation scheme fees.

Brooks Macdonald indicated it plans to continue organic investments, including potential further acquisitions in financial planning.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.