Brooks Macdonald FY profit beats on platform MPS growth
Brooks Macdonald FY profit beats on platform MPS growth
Overview
UK wealth manager's FY26 revenue rose 6% yr/yr, slightly missing analyst expectations
Adjusted EPS for FY26 beat analyst estimates, rising 6% yr/yr
Adjusted pretax profit for FY26 was a slight miss versus consensus
Outlook
Brooks Macdonald expects FY26 revenue trends to continue into FY27
Company anticipates moderate growth in underlying costs in FY27
Board expects FY27 financial performance to be marginally ahead of current market expectations
Result Drivers
PLATFORM MPS GROWTH - Platform-based managed portfolio services FUM rose 35% to £8.0 bln, with net inflows of £915 mln and strong client demand
FINANCIAL PLANNING INTEGRATION - Financial planning revenue grew 10% like-for-like, now making up about 25% of group revenue, following full integration of acquired businesses
EFFICIENCY ACTIONS - Cost savings from organisational restructuring and integration synergies created capacity for targeted investment in growth and technology
Company press release: ID:nRSC1841Ta
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | Slight Miss* | GBP 118.10 mln | GBP 118.85 mln (6 Analysts) |
FY Adjusted EPS | Beat | GBP 1.38 | GBP 1.34 (6 Analysts) |
FY EPS |
| GBP 0.15 |
|
FY Adjusted Pretax Profit | Slight Miss* | GBP 29 mln | GBP 29.11 mln (6 Analysts) |
FY Dividend |
| GBP 0.83 |
|
FY Pretax Profit |
| GBP 3.20 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the investment management & fund operators peer group is "buy"
Wall Street's median 12-month price target for Brooks Macdonald Group PLC is GBp1,800.00, about 22.4% above its September 2 closing price of GBp1,470.00
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago
Reuters Recommended Reads
Sept 1 - UK's Bunzl forecasts modest profit growth, improves margin outlook
Sept 1 - UK economic outlook improves but firms wary of investment, BCC says
Aug 31 - UK retailers raise prices by most since 2024, BRC data shows
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)