Brooks Macdonald delivered first-half results for 2026 that showed a mixed performance: an underlying pre-tax profit that outstripped market forecasts, alongside revenues that fell short of consensus. The wealth manager recorded underlying pre-tax profit of 13.6 million, a 12% decline from the prior year but 5% above analysts' expectations. Management attributed the positive surprise on profit to cost reductions taking effect earlier than planned.
Top-line results were less encouraging. Revenues for the period totalled 58 million, up 12% on a year-over-year basis but 3% below consensus estimates. The company reported an average funds-under-management related revenue yield of 50.6 basis points, down from 59.4 basis points in fiscal 2025. The fall in yield reflected lower transactional revenue within the business performance services division.
Adjusting for the effect of transaction-related income, the company said revenues were 5% lower year-on-year, while costs were 3% higher on the same adjusted basis. The firm's profit margin for the half stood at 23.4%.
On a per-share basis, earnings were 64.2 pence, a 7% decrease from the prior year but 4% ahead of forecasts. The board declared an interim dividend of 31 pence per share, an increase of 3% compared with the year-earlier interim payout and in line with market expectations.
Brooks Macdonald's cash balance fell to 27 million from 54 million at the previous year-end. Management linked the reduction to higher capital expenditure and investment spending, as well as activity related to mergers and acquisitions. The group's capital surplus decreased to 12.0 million from 15.6 million at fiscal 2025 close.
Looking ahead, Brooks Macdonald said it expects full-year 2026 performance to be in line with market expectations. The company anticipates the revenue-yield trends observed in the first half to persist into the second half. It also expects second-half costs to be broadly comparable with the first half before accounting for the Financial Services Compensation Scheme levy.
Finally, management reiterated plans for ongoing organic investment and indicated the potential for additional financial planning mergers and acquisitions as part of its strategy.