Full Year 2026 Brooks Macdonald Group PLC Earnings Call Transcript
Key Points
- Brooks Macdonald Group PLC (LSE:BRK) returned to positive net flows, with a GBP600 million improvement year-over-year and three consecutive quarters of expanding net inflows.
- The company achieved record FUMA of GBP21.7 billion, a 14% increase, driven by strong investment performance and market growth.
- Platform MPS FUM saw exceptional growth of 35%, contributing to a 16% increase in MPS revenue.
- The Brooks Financial integration was successful, delivering 10% like-for-like revenue growth, 93% client satisfaction, and cost synergies exceeding targets.
- Management guided that full-year 2027 performance is expected to be marginally ahead of current consensus, supported by a strong momentum and a reduced investment phase.
- BPS net outflows improved but remained negative, with the improvement only around 50% compared to the prior year.
- Transaction and interest income declined year-over-year due to lower trading activity and lower average interest rates.
- The company incurred significant one-off costs, including GBP5.1 million for organizational restructuring and GBP19.4 million for M&A and integration activity.
- Revenue margins on MPS are expected to continue to moderate due to a shift in mix towards lower-margin passive and business-to-business relationships.
- The change in client fee payments to monthly caused a one-off acceleration of income, which may not be repeatable in the next fiscal year.
Good morning, and welcome to Brooks Macdonald's full year results for 2026. Two years ago, when I became CEO, I made a clear commitment to reignite growth and restore the ambition that defines this business. Our strategy is working, and this success has been made possible because of our clients, our people and our shareholders.
We've fundamentally changed the business and have built a human-led, digitally enabled wealth manager. We are already known and chosen for our client service. We're in a trusted position in people's lives, providing them with peace of mind and financial security. Prioritizing our clients and their needs translates into business results.
This year, we have returned to positive net flows. We've delivered record FUMA of GBP21.7 billion and revenue growth across the business. Net flows are up GBP600 million since last year with three consecutive quarters of positive and expanding net flows. Platform NPS FUM is up 35% and BPS FUM is up 9%.
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