Non-IFRS financial information
Non-IFRS financial information or alternative performance measures (“APMs”) are used as supplemental measures in monitoring the performance of the Group. The adjustments applied to IFRS measures to compute the Group’s APMs exclude income and expense categories, which are deemed to be outside the normal course of business operations. The Board considers the disclosed APMs to be an appropriate reflection of the Group’s underlying performance. The Group follows a rigorous process in determining whether an adjustment should be made to present an alternative performance measure compared to IFRS measures. For an adjustment to be removed from IFRS statutory profit before tax to derive underlying profit, it must be a significant item and meet the following criteria: • It is non-recurring and outside the normal course of business operations; or • It has been incurred as a result of an acquisition, disposal or company restructure process. The Group uses the below APMs:
Equivalent IFRS measure
APM
Definition and purpose
Underlying profit before tax from continuing operations
Statutory profit before tax from continuing operations
Calculated as profit before tax from continuing operations, excluding income and expense categories, which are deemed of a non-recurring nature. It is considered by the Board to be an appropriate reflection of the Group’s performance. See page 28 for a reconciliation of underlying profit before tax from continuing operations and statutory profit before tax from continuing operations, and an explanation for each item excluded in underlying profit before tax. Calculated as the statutory tax charge from continuing operations, excluding the tax impact of the adjustments excluded from underlying profit. See note 12 Taxation. Calculated as underlying profit before tax from continuing operations less the underlying tax charge from continuing operations. See note 15 of the consolidated financial statements for a reconciliation of underlying profit after tax from continuing operations and total comprehensive income. Calculated as underlying profit after tax from continuing operations, divided by the weighted average number of shares in issue during the financial year, including the dilutive impact of future share awards. This is a key management incentive metric and is a measure used within the Group’s remuneration schemes. See note 15 Earnings per share.
Underlying tax charge from continuing operations Underlying earnings/ Underlying profit after tax from continuing operations Underlying diluted earnings per share from continuing operations
Statutory tax charge from continuing operations Total comprehensive income from continuing operations Statutory diluted earnings per share from continuing operations
162
Brooks Macdonald Group plc Annual Report and Accounts 2025
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