Notes to the consolidated financial statements continued For the year ended 30 June 2025
37. Related-party transactions Transactions between the Company and its subsidiaries, which are related parties, are eliminated on consolidation. The Company’s individual financial statements include the amounts attributable to subsidiaries. Transactions with key management personnel Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, directly or indirectly, including any Director (whether executive or otherwise) of the Group. Details of the compensation paid to the Board of Directors as well as their shareholding in the Company are disclosed in the Remuneration Committee report. Certain of the Groupʼs key management personnel make use of the services provided by companies within the Group. Charges for such services are made at various staff rates. All transactions were made on normal business terms.
38. Interest in unconsolidated structured entities Structured entities are those entities that have been designed so that voting or similar rights are not the dominant factor in deciding who has control, such as when any voting rights relate to administrative tasks only, or when the relevant activities are directed by means of contractual arrangements. The Group’s interests in consolidated and unconsolidated structured entities are described below. The only consolidated structured entity is the Brooks Macdonald Group EBT, details of which are given in note 32. The Group has interests in structured entities as a result of contractual arrangements arising from the management of assets on behalf of its clients. These structured entities consist of unitised vehicles such as OEICs, which entitle investors to a percentage of the vehicle’s net asset value. The structured entities are financed by the purchase of units or shares by investors. As fund manager, the Group does not guarantee returns on its funds or commit to financially support its funds. Where external finance is raised, the Group does not provide a guarantee for the repayment of any borrowings. The business activity of all structured entities in which the Group has an interest is the management of assets in order to maximise investment returns for investors from capital appreciation and/or investment income. The Group earns a management fee from its structured entities based on a percentage of the entity’s net asset value. The funds under management of unconsolidated structured entities within the Group’s continuing operations total £1.208 billion (2024: £1.323 billion). Included in the revenue from continuing operations on the consolidated statement of comprehensive income is management fee income of £6,598,000 (2024: £6,914,000) from unconsolidated structured entities managed by the Group. 39. Events since the end of the year A final dividend was declared on 3 September 2025, refer to note 16 for further details. In August 2025, the Group accepted an offer from its insurers for £1.3 million in settlement of legacy matters related to its International business. As the offer was made and accepted after the financial reporting date, and the receipt of funds was not considered virtually certain as at 30 June 2025, no asset has been recognised in these financial statements. However, at the date of signing these financial statements, the receipt of the proceeds was deemed probable. Accordingly, the insurance proceeds are expected to be recognised as other non-operating income in the statement of comprehensive income in the financial year ending 30 June 2026.
Brooks Macdonald Group plc Annual Report and Accounts 2025
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