Brooks Macdonald has reported that its underlying profit before tax fell by 4.6 per cent year-on-year to £28.9m at the end of June 2025, as acquisitions drove up underlying costs.

While the wealth manager’s costs, excluding acquisitions, remained stable compared to the previous year, its total costs including acquisitions and net finance income increased by 8.2 per cent year-on-year to £82.7m.

Its statutory profit before tax fell from £24.6m to £17.5m over the same period, primarily due to higher acquisition and integration costs, while profit after tax from discontinued operations rose from a loss of £13.9m to a profit of £9.4m.

During the year, Brooks Macdonald completed the acquisitions of Lucas Fettes Financial Planning, LIFT-Financial Group and LIFT-Invest, and CST Wealth Management.

It also sold its international arm Brooks Macdonald Asset Management (International) to Canaccord Genuity.

The group’s full-year results report also revealed that its total funds under management and advice (FUMA) increased by 17.3 per cent year-on-year to £19.2bn, comprising £16.6bn of FUM and £2.6bn of advised only assets.

Net outflows totalled £400m during the year, with £300m of outflows in the second half of 2024 and £100m in the first half of 2025.

Revenue increased by 4.6 per cent year-on-year to £111.6m due to higher financial planning income following the acquisitions, partly offset by lower interest income and lower fee income.

Total comprehensive income for the year was £21m, up from £6.5m at the end of June 2024.

“This year we have focused on the execution of our strategy to reignite growth,” said Brooks Macdonald CEO, Andrea Montague.

“We are now a UK-focused wealth manager. We have created a scalable financial planning business. We have launched a suite of retirement strategies that meet a growing client need and continue to deliver strong investment performance.

“We are building momentum and creating the conditions for success. I am confident in the outlook for the current financial year and beyond.”

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