Strategic Report
Governance Report
Financial Statements
Company Financial Statements
Independent Auditors’ report to the members of Brooks Macdonald Group plc
Report on the audit of the financial statements Opinion In our opinion, Brooks Macdonald Group plc’s group financial statements and company financial statements (the “financial statements”): • give a true and fair view of the state of the group’s and of the company’s affairs as at 30 June 2025 and of the group’s profit and the group’s and company’s cash flows for the year then ended; • have been properly prepared in accordance with UK-adopted international accounting standards as applied in accordance with the provisions of the Companies Act 2006; and • have been prepared in accordance with the requirements of the Companies Act 2006. We have audited the financial statements, included within the Annual Report and Accounts (the “Annual Report”), which comprise: the Consolidated statement of financial position and Company statement of financial position as at 30 June 2025; the Consolidated statement of comprehensive income, the Consolidated statement of cash flows and Company statement of cash flows, the Consolidated statement of changes in equity and the Company statement of changes in equity for the year then ended; and the notes to the financial statements, comprising material accounting policy information and other explanatory information. Our opinion is consistent with our reporting to the Audit Committee.
Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We remained independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the UK Financial Reporting Council’s (“FRC’s”) Ethical Standard, as applicable to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s Ethical Standard were not provided. Other than those disclosed in note 9, we have provided no non-audit services to the company or its controlled undertakings in the period under audit.
Our audit approach Overview Audit scope • The scope of our audit and the nature, timing and extent of audit procedures performed were determined based on our risk assessment. The group comprised 29 legal entities across the UK and Channel Islands during the reporting period. We conducted audit testing over 15 legal entities, including 1 entity in the Channel Islands. Taken together, our audit work accounted for more than 99.75% of group revenues. Key audit matters • Recognition of investment management fees (group) • Acquisition accounting regarding the acquisitions of CST Wealth, Lucas Fettes and LIFT (group) • Accounting and disclosure of the disposal of BMI (group) • Impairment assessment of Investment in Subsidiaries (parent) Materiality • Overall group materiality: £1,154,800 (2024: £1,289,000) based on 5% of profit before tax adjusted for non-recurring items being a £3.1 million VAT refund, costs relating to the transition from AIM to the Main Market of £1.9 million, organisational restructuring costs of £2.1 million, acquisition and integration costs of £4.4 million and legacy legal costs of £0.3 million (note 15).
• Overall company materiality: £1,067,150 (2024: £1,272,900) based on 1% of net assets. • Performance materiality: £866,100 (2024: £966,800) (group) and £800,350 (2024: £954,690) (company). The scope of our audit As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. Key audit matters Key audit matters are those matters that, in the auditors’ professional judgement, were of most significance in the audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by the auditors, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters, and any comments we make on the results of our procedures thereon, were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. This is not a complete list of all risks identified by our audit. Acquisition accounting regarding the
acquisitions of CST Wealth, Lucas Fettes and LIFT is a new key audit matter this year. The IFRS 5 considerations relating to the strategic review over the International business, which was a key audit matter last year, has now been replaced with a key audit matter relating to the accounting and disclosure of the disposal of BMI. Otherwise, the key audit matters below are consistent with last year.
Brooks Macdonald Group plc Annual Report and Accounts 2025
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