Brooks Macdonald Annual Report and Accounts 2025

Strategic Report

Governance Report

Financial Statements

Company Financial Statements

Revenue, average FUM and yields

Revenue

Average FUM

Yields

2025 £m

2024 1 £m

Change %

2025 £m

2024 1 £m

Change %

2025 bps

2024 1 bps

Change bps

BPS fees

51.4 14.0

54.4 12.2 66.6

(5.6)% 14.7% (1.8)% (5.4)% 26.7% 11.8% (3.7)%

8,373

8,579

(2.4)%

61.4 16.7 78.1 58.6

63.5 14.2 77.7 59.2 18.2 26.4 45.4 57.8

(2.1)

BPS transactional and FX income

2.5 0.4

Total BPS

65.4

8,373

8,579

(2.4)% (4.5)% 30.0% 23.1% (2.8)%

MPS Custody MPS Platform

5.4 9.0

5.8

929

972

(0.6) (0.5) (2.4) (0.5) (3.2) (3.7) (3.7) (6.0)

7.1

5,058 5,987 1,445

3,892 4,864 1,486 14,929

17.7

Total MPS

14.4

12.9

24.0 44.9 54.6

Funds

6.5

6.8

Total (excluding interest income)

86.3

86.3

0.0% 15,805

5.9%

Interest income – BPS

6.8 0.8

10.2

(33.0)% (34.6)%

8.2 8.2

11.9 11.9

Interest income – MPS Custody Total FUM-related revenue

1.2

93.9

97.7

(3.9)% 15,805

14,929

5.9%

59.4 45.4

65.4 34.6

Financial planning

17.1 0.6

8.2 0.8 9.0

108.8% (19.2)% 97.7% 4.6%

10.8

Other income

Total non-FUM-related revenue

17.7

Total revenue

111.6

106.7

1 The prior financial year has been restated to separate the results of discontinued operations, consistent with the presentation in the current financial year.

Underlying cost analysis (£m)

During the year, the overall yield decreased by 6.0bps to 59.4bps (2024: 65.4bps). The yield on total BPS increased by 0.4bps to 78.1bps (2024: 77.7bps). This reflects higher transaction and FX income, offsetting the impact of lower fee and product mix. This was driven by the variation in fee rates on gross BPS outflows and rates achieved on new business within Core BPS and the product mix across the underlying BPS services, including the Gilts offering. The yield on total MPS decreased by 2.4bps to 24.0bps (2024: 26.4bps), largely due to the increased proportion of FUM held within the lower-yielding MPS Platform compared to MPS Custody. The yield on interest income, net of amounts paid to clients, decreased by 3.7bps to 8.2bps (2024: 11.9bps). The reduction reflects the fall

in the Bank of England base rate over the year, combined with an increase in the proportion of interest income shared with clients. Underlying costs Excluding costs acquired with the Financial Planning businesses of £6.2 million (2024: nil), the underlying costs (including £2.5 million of finance income) were broadly flat at £76.5 million. This reflects inflationary and regulatory cost increases of 2.6% and investment in capability and capacity of 5.4% to support business growth, offset by 7.7% of cost savings due to management actions, including organisational restructuring, lower variable pay costs and more discipline around non-staff costs. Total underlying costs, including acquisitions and finance income, increased by 8.2% to £82.7 million (2024 restated: £76.4 million).

+0.1%

+8%

+3%

-8%

+5%

6.2

2.0

(5.9)

4.0

82.7

76.5

76.4

2024 1

Inflationary / regulatory increases

Cost saving

Investment

2025 1

Acquisitions

2025 1 reported

1 Includes net finance income of £2.5 million (2024: £2.4 million).

Brooks Macdonald Group plc Annual Report and Accounts 2025

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