Sparks

Brooks Macdonald reported FY26 results (year to 30 June 2026), with total funds under management and advice (FUMA) up 14% y-o-y to a record £21.7bn (FY25: £19.1bn), including funds under management (FUM) of £19.3bn (+17%). The group recorded net inflows of £226m, its first positive full-year net flows since FY23, compared with £396m of outflows in FY25. H226 accounted for £224m of these inflows after £2m in H126. Revenue rose 6% to £118.1m, supported by higher average FUM and 10% l-f-l growth in financial planning income, partly offset by lower transactional, FX and interest income. Underlying PBT was broadly flat at £29.0m and the underlying operating margin declined by 1.3pp to 24.6%, as reported underlying costs increased 6% to £90.3m, although they fell 3% l-f-l. Underlying diluted EPS rose 6% to 137.9p, including the benefit of the completed share buyback. Statutory PBT fell 82% to £3.2m after £25.8m of net adjusting items, primarily transformation, restructuring and acquisition-related costs and amortisation. The full-year dividend increased 2.5% to 83.0p, marking the 21st consecutive year of growth. 

Bespoke Portfolio Service (BPS) FUM rose 9% to £9.3bn, while net outflows roughly halved to £363m and the number of clients with portfolios above £1m increased 15%. Platform MPS FUM grew 35% to £8.0bn, supported by £915m of net inflows, equivalent to 15.3% of opening FUM. However, the increasing contribution from lower-yielding Platform MPS remains a headwind to the group revenue yield: total MPS revenue rose 16% despite average FUM growth of 31%, with the MPS yield declining to 21.3bp from 24.0bp. Financial planning revenue reached £28.6m, up 10% l-f-l and now representing c 25% of group revenue. Brooks Financial delivered £1.3m of integration synergies, ahead of its £1.0m target, and achieved 98% client retention. Cash resources and liquid assets declined from £53.8m to £25.0m following dividends, the completed buyback and significant transformation, restructuring, capex and M&A-related spending, although Brooks Macdonald had no debt at year-end.  

Management expects FY27 organic investment to decline materially to the high single-digit millions and anticipates £10-15m of net deferred consideration receipts. The group guided to FY26 revenue trends continuing into FY27, with moderate cost growth consistent with its sub-5% business-as-usual target. Importantly, management expects FY27 financial performance to be marginally ahead of current market expectations and stated its medium-term target of +5% annualised net flows.