The results of Brooks Macdonald Group (LSE:BRK) for the year to 30 June 2026 mark a change in direction on client money. After net outflows in the previous financial year, the Wealth manager reported net inflows. This article looks at how that happened, what else the results showed and what remains uncertain.

A UK Wealth Manager on the Main Market

Brooks Macdonald is a UK Wealth Management group offering discretionary Investment management, managed portfolio services distributed through financial advisers' platforms, and financial planning through its Brooks Financial business. According to its Investor relations website, its shares were admitted to the Equity Shares (Commercial Companies) category of the Official List, with admission to the London Stock Exchange's Main Market becoming effective on 28 March 2025.

The 3 September 2026 Results

On 3 September 2026, the company published its full-year results. It reported funds under management and administration of £21.7 billion at 30 June 2026, up from £19.1 billion a year earlier, with funds under management rising to £19.3 billion from £16.5 billion. Net flows were an inflow of £226 million, compared with an outflow of £396 million in the 2025 financial year. The company said market and investment performance added £2.5 billion to funds under management and administration.

Within that total, platform managed portfolio service funds grew 35% to £8.0 billion, while its bespoke portfolio service funds rose 9% to £9.3 billion. Revenue from Brooks Financial, acquired in an earlier year, grew 10% on a like-for-like basis and now represents about a quarter of group revenue. Chief executive Andrea Montague said: "FY26 was a year of strong progress as we completed a two-year period of transformation."

Profit, Costs and Dividend

Revenue rose 6% to £118.1 million from £111.6 million. Underlying Profit before tax was £29.0 million, broadly flat against £28.9 million, and the underlying Operating Margin eased to 24.6% from 25.9%. Underlying Diluted Earnings per Share increased to 137.9p from 130.4p. Underlying costs before net finance income also fell 3% against the 2025 financial year on a like-for-like basis, according to the company.

Statutory profit before tax was much lower, at £3.2 million against £17.5 million. The company attributed the gap to items excluded from underlying profit, including a £12.1 million strategic transformation charge, £6.8 million of organisational restructuring costs, £4.4 million of Amortisation of acquired client relationships and £5.3 million of Acquisition and integration costs, partly offset by £2.8 million of other net income, mainly insurance proceeds. Statutory diluted earnings per share were 15.1p, down from 71.4p.

The board proposed a final Dividend of 52.0p, taking the total for the year to 83.0p, which the company described as its 21st consecutive year of dividend growth. The final dividend is due to be paid on 6 November 2026, with an ex-dividend date of 18 September. The company also said it bought back £3.0 million of shares during the year, completing a £10.0 million programme in October 2025.

Risks and What to Watch

Several points deserve attention. Cash resources and Liquid assets fell to £25.0 million from £53.8 million, and the company reported excess Capital of £5.9 million after its internal buffer, before paying the final dividend. That suggests less headroom than a year earlier. Wealth managers' revenues are linked to market levels, so falling markets could reduce fees. Further transformation or integration costs could continue to separate statutory from underlying profit, and sustaining net inflows is not guaranteed. Management said it expects 2027 financial performance to be "marginally ahead of current market expectations".

Conclusion

Brooks Macdonald returned to net inflows through growth in its platform managed portfolio service and bespoke portfolios, alongside market gains. Underlying earnings per share and the dividend rose, although heavy transformation costs sharply reduced statutory profit and cash resources declined during the year.