Brooks Macdonald Group plc · LSE:BRK
Brooks Macdonald — HY25 Earnings Presentation
34 slides from Brooks Macdonald's earnings presentation, February 2025
Slide 1: Half-year HY25 results
Half-year IO25 results Brooks Macdonald 97 February 2025
Slide 2: HY25 Results and Our Strategy
HY25 Results and Our Strategy Andrea Montague, Chief Executive Officer BM
Slide 3: Significant Progress: Setting the Business up for Success
Significant Progress: Setting the Business up for Success • Re- shaped the Group to be a UK focussed Wealth Manager, with strong capability in Financial Planning and Advisor Distribution • Industry-leading Executive team • Depth and breadth of our offering to meet client needs • Delivering on our st
Slide 4: Financial Results
HY25 Financial Results Katherine Jones, Chief Financial Officer BM
Slide 5: HY25 financial results
HY25 financial results Solid results reflecting cost discipline to deliver a strong underlying profit margin • Closing FUM up 4% year-on-year, Summary continuing operations financial performance supported by investment performance and strong net flows in MPS Platform HY241 HY25 Variance Closing FUM
Slide 6: FUM and AUA overview
FUM and AUA overview Strong MPS Platform net flows Product mix HY25 vs FY241,2 (£bn) FUM bridge FY241 vs HY25 (£m) Proforma AUA of £6.4bn3,4 (£bn) 1,107 376 1.3 15,658 15,544 -1,369 1.5 1.3 Net flows -262 2.4 4.8 4.3 8.9 8.7 1.0 2.5 0.9 Advised and managed BPS MPS Custody Opening FUM Inflows Outflow
Slide 7: Revenue performance
Revenue performance Increase in financial planning income offset by lower interest income • Fee income in line with PY reflecting effects of Revenue analysis (£m)1,2 product mix changes HY243 HY25 Variance • Financial planning income up 24%, reflecting – Underlying business growth Fee income 37.0 37
Slide 8: Revenue yield trends
Revenue yield trends Yield compression primarily reflects change in product mix Fee yield bridge HY241 to HY25 (bps) • Increase in MPS Platform as a proportion of total -3.7bps FUM is the primary driver of overall reduction in 58.1 yield -2.2 54.4 -1.3 -0.2 • By product HY24 Change in Change in fees
Slide 9: Underlying cost performance
Underlying cost performance Ongoing cost discipline reduced costs year on year • Strong underlying cost performance Total underlying costs movement HY241 to HY25 (£m) before acquisitions with costs down -4% 4% year on year 37.5 • HY25 costs include £0.5m of costs 0.2 35.9 0.5 36.4 0.8 -1.7 from CST
Slide 10: Capital and cash position
Capital and cash position Strong balance sheet and robust cash and capital positions provide financial flexibility Cash and liquid assets (£m)1 • £59.5m of cash and liquid assets 74.7 8.1 • £39.5m capital in excess of regulatory requirement and -7.9 59.5 internal buffer -5.2 -3.5 -6.7 • Interim divi
Slide 11: In summary
In summary Solid financial performance HY25 summary Outlook ✓ MPS Platform net flow momentum and • The Group anticipates its full year performance investment performance support FUM growth will be in line with its expectations • Return to positive net flows later in the year ✓ Revenue reduction from
Slide 12: Our Strategy
Our Strategy Realising Ambitions. Securing Futures. We are Brooks Macdonald Andrea Montague, Chief Executive Officer BM
Slide 13: Brooks Macdonald changing at pace
Brooks Macdonald changing at pace In the first 100 days significant progress executing our strategy Revenue (before M&A) Refocusing the Group Operational delivery Completed 3 acquisitions New Executive team appointed Disposed of International IFA Distribution Financial Planning International Reinvig
Slide 14: Three strategic priorities to Reignite Growth
Three strategic priorities to Reignite Growth Broadening & Driving Scale Delivering Excellent Deepening Client & Efficiencies Client Service Reach Flows & Revenues Efficiency Supplemented by targeted M&A against strict criteria 14
Slide 15: Delivering Excellent Client Service
Three strategic priorities to Reignite Growth Delivering Excellent Client Service • New sales leadership – enhancing our Distribution capability with experienced new hires • Delivering more accessible information – enhancements made to our InvestBM online client portal • Working with partners to imp
Slide 16: Broadening & Deepening Client Reach
Three strategic priorities to Reignite Growth Broadening & Deepening Client Reach • Acquisitions – c.3,000 new clients, and integration on track, now c.23,000 clients • Extending the breadth of propositions – Gilts, Money Market funds, expanding our Brooks Retirement Solution proposition • Better cu
Slide 17: Driving Scale & Efficiencies
Three strategic priorities to Reignite Growth Driving Scale & Efficiencies • Simplifying and automating processes – removing duplication and inefficiency • Continuing our journey towards a paperless organisation – including creation of downloadable tax packs • Centralising common activities - to dri
Slide 18: Why Brooks Macdonald?
Why Brooks Macdonald? • Strength of the Executive team ~£3tn* isers 2026 Addressable • Clarity of strategy, balance sheet l Adv Market ia nc strength with disciplined execution Fina ~£2.5tn* 2023 Addressable • Depth and breadth of our offering Market Investment across the client lifecycle £16bn prop
Slide 19: Reigniting Growth
Reigniting Growth Refocusing the Group Improving our clients’ experience Industry-leading executive team to drive growth Strategy, execution, momentum 19
Slide 20: Appendix
Appendix
Slide 21: Guidance and medium-term targets
Guidance and medium-term targets Confidence in delivering our strategy – the Group anticipates its full year performance will be in line with its expectations Flows and P&L outlook Cash and capital outlook • Return to positive net flows later in the year Key H2’25 movements expected to include: • FY
Slide 22: Illustrative FUM / AUA and yields
Illustrative FUM / AUA and yields Significant opportunity to broaden existing client relationships and add new clients HY25 FUM of £15.7bn1 HY25 proforma AUA of £6.4bn2 • Acquisitions deliver scale financial Fee Financial planning business income planning income • Further opportunities exist to broa
Slide 23: Illustrative scale of Group post acquisitions
Illustrative scale of Group post acquisitions Refocussed Group replaces earnings from International business with earnings from acquired businesses • Financial information Discontinued Illustrative presented for illustrative FY24 FY24 Illustrative operations scale of post purposes only. £m acquired
Slide 24: HY25 financial results
HY25 financial results Total, discontinued & continuing operations HY24 FY24 HY25 Discontinued Continuing Discontinued Continuing Discontinued Continuing £m Total Total Total ops1 ops ops1 ops ops1 ops2 Closing FUM 17,579 2,521 15,058 18,028 2,484 15,544 17,932 2,274 15,658 Revenue 63.6 10.3 53.3 12
Slide 25: Statutory result
Statutory result Statutory profit before tax from continuing operations was £12.6m, up 7.7% on HY24 Acquisition and integration-related costs (£2.5 million charge) Group financial results summary (£m) HY241 HY25 • These represent costs incurred in relation to the Group’s recent acquisitions, Underly
Slide 26: Analysis of revenue and yield
Analysis of revenue and yield Yield compression primarily reflects change in product mix Average Average Revenue Yields Revenue Yields FUM FUM HY25 HY241 Change HY25 HY241 Change HY25 HY241 Change FY241 FY241 FY241 £m £m £ £m £m % bps bps bps £m £m bps BPS fees 26.6 27.1 (0.5) 8,546 8,446 1.2 61.8 6
Slide 27: Highly attractive growth market
Highly attractive growth market Opportunity for Brooks Macdonald to realise ambitions and secure futures Ageing UK population By 2041 23% of the population will be over 65, compared to 18% now ~£3tn* Advice gap 2026 Addressable 12.4m people who could benefit from advice don’t currently get it Market
Slide 28: Growing need for services across the client lifecycle
Growing need for services across the client lifecycle Our Purpose is clear – realising ambitions and securing futures Meeting needs across the client lifecycle Clients Accumulators Preparers Retirees Talented team: Age Average IM tenure of 10 years Full range of wealth offering Strong investment ret
Slide 29: Depth and breadth
Depth and breadth Compelling solutions built from demonstrable expertise 29
Slide 30: Comparison of investment performance to industry indices
Comparison of investment performance to industry indices Ahead of industry for all risk profiles over both 1 and 10 years 1,2 Cumulative performance (%) Risk Profiles 1 year to 3 years to 5 years to 10 years to • The ARC (Asset Risk Consultants) indices combine actual 31.12.24 31.12.24 31.12.24 31.1
Slide 31: Comparison of investment performance vs peers
Comparison of investment performance vs peers Consistent performance above benchmark over multiple time periods 1 Year 5 Year 12 8 Brooks Macdonald MPS – 3rd Brooks Macdonald MPS – 4th 7 10 6 8 5 6 4 3 4 2 2 1 0 0 10 Year 8 Brooks Macdonald MPS – 2nd • MPS Medium Risk investment performance has been
Slide 32: 2025 Defaqto Ratings
2025 Defaqto Ratings 5 Diamond Rating for 5 Diamond Rating for DFM MPS 4 Diamond Rating for 4 Diamond Risk Targeted Fund (Platform) Portfolio Family DFM MPS (Direct) Portfolio Family Risk Focused Fund Family Family Managed Portfolio Service (Platform) Managed Portfolio Service (Direct) SVS Blueprint
Slide 33: Financial Planning
Financial Planning Recent acquisitions have strengthened our route to market through independent advice 33
Slide 34: Net flows progression
Net flows progression Strong gross inflows at HY25 although outflows remain elevated Annualised flows (£bn) 2.6 2.4 2.2 2.1 2.2 1.7 1.0 0.9 0.5 0.1 -0.4 -0.5 -1.4 -1.6 -1.5 -1.9 -2.5 -2.7 FY20 FY21 FY22 FY23 FY24 HY25¹ Gross inflows Gross outflows Net flows 1 HY25 represents annualised results. 34