Brooks Macdonald (LSE:BRK) reported first-half results for 2026 showing profits ahead of market expectations, although revenue came in slightly below forecasts. The wealth manager delivered underlying pre-tax profit of £13.6 million, representing a 12% decline year-on-year but exceeding consensus estimates by around 5%, supported by earlier-than-expected benefits from cost control measures.
Revenue for the period reached £58 million, up 12% compared with the prior year but approximately 3% below analyst expectations. The average revenue yield linked to funds under management fell to 50.6 basis points from 59.4 basis points in fiscal 2025, largely reflecting weaker transactional income within the business performance services division. Excluding transaction-related impacts, revenues declined 5% year-on-year while costs increased by 3%.
The group reported a profit margin of 23.4%, while earnings per share totalled 64.2 pence — down 7% from the previous year but around 4% ahead of forecasts. An interim dividend of 31 pence per share was declared, representing a 3% increase year-on-year and meeting market expectations.
Cash balances declined to £27 million from £54 million, reflecting higher capital expenditure, continued investment activity and mergers and acquisitions spending. The company’s capital surplus also reduced to £12.0 million from £15.6 million at the end of fiscal 2025.
Looking ahead, Brooks Macdonald expects full-year 2026 performance to align with current market expectations. Management anticipates first-half revenue yield trends will persist into the second half, with operating costs broadly similar to first-half levels before the Financial Services Compensation Scheme levy. The firm also plans to continue investing organically and remains open to further acquisitions in financial planning as part of its growth strategy.
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