Notes to the consolidated financial statements continued For the year ended 30 June 2025
13. Result from discontinued operations continued
Gain on disposal
On completion, the Group received initial cash consideration of £27,147,000. Deferred contingent consideration of up to £22,850,000 is receivable two years post-completion contingent on BMI reaching certain revenue targets on an actual and run-rate basis. On disposal, the estimated fair value of net deferred contingent consideration receivable was £13,649,000. The net assets disposed represent the net assets of BMI on the Group’s balance sheet as at the completion date which includes client relationship intangible assets, goodwill and associated deferred tax liabilities attributable to BMI. The costs to assist with the disposal of BMI relate to third-party consultancy spend and corporate advisory fees. £1,513,000 of these costs were incurred in the prior financial year, therefore the gain recognised in the current financial year excludes these costs. This gain is presented within profit from discontinued operations in the consolidated statement of comprehensive income for the year ended 30 June 2025. 13(c) DCF Result The results of discontinued operations for DCF are shown below:
£’000
523 658 1,181
Initial cash consideration received
Fair value of deferred contingent consideration receivable
Total consideration Net assets disposed
(245)
Gain on disposal of DCF
936
Initial cash consideration of £523,000 was received on completion, and additional cash consideration will be receivable, contingent on funds under management meeting certain targets over a three-year period post disposal. On disposal, the estimated fair value of deferred contingent consideration receivable was £658,000. Net assets disposed is the goodwill previously recognised by the Group attributable to DCF. This gain on disposal is presented within profit from discontinued operations in the consolidated statement of comprehensive income for the year ended 30 June 2025. 14. Business combinations On 29 October 2024, the Group acquired CST Wealth Management Limited (“CST”), a chartered financial planning firm based in Wales with assets under advice of c.£170 million and c.500 clients. The acquisition consisted of acquiring 100% of the issued share capital of CST. On 29 November 2024, the Group completed the acquisition of Lucas Fettes (Holdings) Limited and its wholly-owned subsidiary Lucas Fettes and Partners (Financial Services) Limited (together “Lucas Fettes”), a Norwich-based financial planning provider with assets under advice of c.£890 million and c.300 corporate and employee benefit clients. The acquisition consists of acquiring 100% of the issued share capital of Lucas Fettes. On 31 January 2025, the Group completed the acquisition of LIFT-Financial Group Limited and LIFT-Invest Limited (together, “LIFT”). The acquisition brings additional assets under advice of c.£1.6 billion and c.1,350 clients made up of private individuals, predominantly in financial services and professional sports, families and corporate clients. In addition to wealth management, LIFT offers mortgage and insurance services. The acquisition consists of acquiring 100% of the issued share capital of LIFT.
2024 restated 1 £’000
2025 £’000
344
Revenue
1,669
(292)
Administrative costs Operating profit Net finance income Profit before tax
(1,223)
52
446
1
11
53
457
(13)
Taxation
(114)
Profit after tax
40
343
936
Gain on disposal of DCF discontinued operations Change in fair value of deferred contingent consideration Taxation on gain on disposal of DCF discontinued operations
– – –
(392) (198)
Result from discontinued operations
386
343
1 There has been an update to the results presented in the restated comparative period previously disclosed in the interim report and accounts for the six months ended 31 December 2024. Refer to note 2 for further details.
132
Brooks Macdonald Group plc Annual Report and Accounts 2025
Made with FlippingBook - professional solution for displaying marketing and sales documents online