Brooks Macdonald Annual Report and Accounts for the year en…

Brooks Macdonald Group plc Annual Report and Accounts for the year ended 30 June 2024

Annual Report and Accounts for the year ended 30 June 2025

Contents

75 78

Nomination Committee report Remuneration Committee report

Highlights

95 Directors’ Remuneration policy 103 Risk and Compliance Committee report 106 Report of the Directors 108 Statement of Directors’ responsibilities 109 Independent Auditors’ report

Strategic report 03 At a glance 04

03 At a glance

Creating conditions for success

05 06 07 09 12 14 18 22 24 31 32 35 45

Our purpose and values Investment case Chair’s statement CEO’s statement Market overview Our business model

Financial statements 117 Consolidated statement of comprehensive income

118

Consolidated statement of financial position

Our strategy

119 Consolidated statement of changes in equity 120 Consolidated statement of cash flows 121 Notes to the consolidated financial statements Company financial statements 152 Company statement of financial position 153 Company statement of changes in equity 154 Company statement of cash flows 155 Notes to the Company financial statements

Key performance indicators

09 CEO’s statement

Financial review Viability statement

Stakeholder engagement Responsible business

Summary disclosure against TCFD recommendations Non-financial and sustainability information statement

Risk management

07 Chair’s statement

18 Our strategy

Governance report 60

Chair’s introduction to Governance

61 63 64 65

Board of Directors

Board roles

Board overview

Other information 162 Non-IFRS financial information 163 Company information 164 Glossary

Case studies of Board decisions in the year How the Board embeds culture Board and committee structure

45 Summary disclosure against TCFD recommendations

68 69

Audit Committee report

59 Governance report

Brooks Macdonald Group plc Annual Report and Accounts 2025

Strategic Report

Governance Report

Financial Statements

Company Financial Statements

Highlights for the year ended 30 June 2025

Funds under management and advice (“FUMA”) £19.2bn (2024: £16.4bn)

Statutory profit before tax (“PBT”) £17.5m (2024: £24.6m)

Net outflows

Revenue

£(0.4)bn (2024: net outflows £(0.4)bn)

£111.6m (2024: £106.7m)

Number of financial planners and paraplanners c.90 (2024: c.40)

Underlying PBT

Underlying profit margin

£28.9m (2024: £30.3m)

25.9% (2024: 28.4%)

Women in leadership 35% (2024: 39%)

Statutory diluted earnings per share (“EPS”) 71.4p (2024: 124.5p)

BPS/MPS custody client retention rate 92% (2024: 93%)

Defaqto ratings

Underlying diluted EPS 130.4p (2024: 150.9p)

Total dividend per share 81.0p (2024: 78.0p)

Total greenhouse gas (“GHG”) emissions (market based) 99.2 tCO 2 e (2024: 106.4 tCO 2 e)

Gold for Discretionary Fund Management (“DFM”) Service

During the 2025 financial year, Brooks Macdonald completed the sale of BM International, as well as three acquisitions of financial planning businesses. Throughout this report, disclosures are presented on a continued, consolidated basis, unless stated otherwise. Where practicable, a like-for-like comparative has been included. Refer to explanations and definitions, including alternative performance measures, on pages 162.

Brooks Macdonald Group plc Annual Report and Accounts 2025

Strategic Report

03 04 05 06 07 09 12 14 18 22 24 31 32 35 45

At a glance

Creating conditions for success

Our purpose and values Investment case Chair’s statement CEO’s statement Market overview Our business model

Our strategy

Key performance indicators

Financial review Viability statement

Stakeholder engagement Responsible business

Summary disclosure against TCFD recommendations Non-financial and sustainability information statement

Risk management

Brooks Macdonald Group plc Annual Report and Accounts 2025

Strategic Report

Governance Report

Financial Statements

Company Financial Statements

At a glance

How we do it With a network of 16 offices 1 across the UK, we are able to blend local knowledge with the advantages of national reach and insight. ↗ Read more about our business model on pages 14 to 17

We serve clients across their entire financial lifecycle… Accumulators • Financial advice and planning • Growing your wealth Preparers • Protection from the unexpected • Life-changing events Retirees • Estate planning • Pension and retirement planning Inter-generational wealth transfer

Who we are Proudly serving clients since 1991, Brooks Macdonald is a UK-focused wealth manager with strong distribution via independent financial planners and advisers. What we do Investment Management We offer investment management services to a range of clients, including private individuals, trusts, charities and pension funds. Our centralised investment proposition aims to provide risk-adjusted returns to meet clients’ long-term financial needs. Financial Planning We provide financial planning and advisory services through Brooks Financial. Clients can choose a financial planning service as a stand- alone offering or combine it with our investment management services.

Edinburgh

Glasgow 1

…through our diversified and relevant product offering…

• Bespoke Portfolio Service (“BPS”) • Managed Portfolio Service (“MPS”) • AIM portfolio service • Multi-asset fund solutions • Brooks Macdonald Investment Solutions (“BMIS”)

Leeds

Split of FUMA

Manchester 2

Diss

2.6

Norwich

Elton

8.5

Nuneaton

Birmingham

1.2 0.9

…and trusted financial advice. • Over 1,000 IFAs across the UK • c.90 independent financial planners and paraplanners We also serve clients directly, providing wealth management advice tailored to their individual needs and risk profiles.

£19.2bn

London

Bridgend

Cardiff

6.0

Tunbridge Wells

Southampton

Exeter

l BPS l MPS Platform l MPS Custody

l Funds l Advised only assets

1 Glasgow office opened on 1 July 2025. 2 We have two offices in Manchester.

Brooks Macdonald Group plc Annual Report and Accounts 2025

Creating conditions for success

July

September 2024 • Announced sale of Brooks Macdonald International (“BMI”). • Launched a new strategy, focused on ‘Reigniting Growth’.

October

November

2024

• Andrea Montague was

• Andrea Montague was appointed as Group Chief Executive Officer (“CEO”). • Completed the acquisition of CST Wealth Management, a chartered financial planning firm based in Wales.

• Completed the acquisition of Norwich-based Lucas Fettes, which enhances the Group’s financial planning capabilities in East Anglia. • Katherine Jones was appointed as Group Chief Financial Officer (“CFO”). • Catherine Steele joined the Executive Committee as Group Communications and Marketing Director.

appointed as Group Chief Executive Officer Designate.

January

February

March

June

2025

• Completed the acquisition of LIFT, further expanding the Group’s financial planning business. • Initiated £10 million share buyback programme. • Announced intention to move to the Main Market of the London Stock Exchange (“LSE”).

• Completed the sale of Brooks Macdonald International, which

• Completed the move from AIM to the Main Market of the LSE. • Launched the new Global Managed Portfolio Service. • Neil Cowell joined the Executive Committee as Group Director of Distribution.

• Launched Brooks Macdonald Retirement Strategies to address a growing need for hybrid retirement products. • Joined the FTSE Small Cap index. • Karen Charlery and Josh Lewsey joined the Executive Committee as Chief Operating Officer, and Group Strategy and Corporate Development Officer, respectively.

repositions the Group as a UK-focused wealth manager.

• Undertook nationwide

roadshows, meeting with over 250 Independent Financial Adviser (“IFA”) firms across the UK.

Brooks Macdonald Group plc Annual Report and Accounts 2025

Governance Report

Financial Statements

Company Financial Statements

Strategic Report

Our purpose and values

Our purpose of realising ambitions and securing futures informs our vision.

We want to make a positive difference through the services we provide, the way we provide them, and the way we run the Group. We aspire to create a brighter future that will benefit clients, shareholders, employees and the wider communities in which we and our clients live and work.

…enabling us to create value and deliver positive outcomes for our stakeholders.

Our values ‘guiding principles’ and culture support our purpose and are the driving force behind our client-centric model. Our guiding principles serve as our foundation of trust and guide everything we do.

Our strategy of ʻ Reigniting Growth ʼ aims to deliver long-term sustainable growth… 1 Delivering excellent client service 2 Broadening and deepening our client reach 3 Driving scale and efficiencies

…while behaving as responsible corporate citizens…

Our strategy is underpinned by our three-pillar responsible business framework, structured around the needs and interests of our stakeholders. Our main focus is on protecting the environment, supporting communities, behaving responsibly with our clients and partners, and ensuring the wellbeing of our employees.

Clients

We do the right thing

Employees

Shareholders

We are connected

Regulators

We care

Community and the environment

We make a difference

↗ Read more about our approach to responsible business on pages 35 to 44

↗ Read more about how we create value for our stakeholders on pages 14 to 15

↗ Read more about our strategy on pages 18 to 21

Brooks Macdonald Group plc Annual Report and Accounts 2025

Investment case

Over the year, our efforts have been focused on creating conditions for success. The momentum is building across the business, supported by an experienced and energised leadership team, new product launches and selective M&A. We offer an attractive shareholder proposition, built on:

UK wealth market

Significant growth opportunities in the UK wealth market The addressable UK wealth management market is estimated at c.£3 trillion and expected to grow at a compound annual growth rate of c.7% by 2030 1 , supported by the ongoing demographic, regulatory and technological shifts. Our brand, expertise and relevant product offering, alongside our differentiated distribution, provide a strong foundation, allowing us to take advantage of these growth opportunities. Experienced leadership Our leadership team has significant investment management expertise and strong capabilities in client and adviser engagement. The team is energised and focused on execution, driving growth momentum through excellent service, established relationships and operational efficiencies.

Brand recognition built on trust and long-standing client relationships We have been providing investment management and financial planning services since 1991. We are committed to innovation, exceptional client service and building strong partnerships with financial advisers and our individual clients. The Brooks Financial Academy is creating a new cohort of independent financial planners who share our passion for delivering excellent client service. Our diversified product offering and complementary distribution routes provide additional growth opportunities Our UK-wide network of IFAs, together with our financial planners, leverage our investment expertise and full suite of wealth solutions to support clients at every stage of their financial journey. We see further growth opportunities to broaden relationships with existing clients and add new clients through the value chain. Capital-light with strong cash generation We have a capital-light business model, which supports attractive cash generation. This, alongside our strict cost discipline, allows us to invest in sustainable and long-term growth opportunities, while paying a progressive dividend to our shareholders.

~£5tn 2030 addressable market 1 ~£3tn 2023 addressable market 1

£19.2bn Brooks Macdonald FUMA

GlobalData.

Total dividend per share (p)

Centralised investment proposition Our centralised investment proposition continues to deliver robust investment returns over the long term, maintaining consistency of outcomes for clients and economies of scale for the Group.

2021

2022

2023

2024

2025

06 Brooks Macdonald Group plc Annual Report and Accounts 2025 Brooks Macdonald Group plc 06

Governance Report

Financial Statements

Company Financial Statements

Strategic Report

Chair’s statement

Brooks Macdonald is uniquely placed in a competitive sector to deliver personalised client service through comprehensive products and services, underpinned by a strong investment performance.”

Maarten Slendebroek Chair

Introduction This year was a year of change for Brooks Macdonald as we revitalised, reshaped and refocused our business on the attractive growth opportunity in UK wealth management. Our new Chief Executive Officer (“CEO”), Andrea Montague, defined a strategy to Reignite Growth that focuses on excellent customer service, broadening client reach and driving efficiencies. In the 2025 financial year, we concentrated on the execution of our strategic plan with the sale of Brooks Macdonald’s international operations followed by the acquisition of three excellent financial planning businesses now united under the Brooks Financial brand. At the same time, we continue to value and nurture our long-standing relationships with Independent Financial Advisers (“IFAs”). Reflecting our growth ambitions for the future and to broaden our shareholder base, Brooks Macdonald moved from AIM to the Main Market of the LSE in March.

Performance In the 2025 financial year, the Group reported FUMA of £19.2 billion (2024: £16.4 billion), creating a solid platform for future growth. We have seen an encouraging improvement in net flows across our BPS offering and continued strong growth across the Platform MPS. Underlying PBT reduced by 4.6% to £28.9 million (2024: £30.3 million), principally due to lower interest and fee income. See the financial review in this Annual Report, which contains detailed information on our performance.

Brooks Macdonald Group plc Annual Report and Accounts 2025

Chair’s statement continued

Shareholder returns The Board’s first priority is to drive

Governance We were delighted with the appointment of Andrea Montague as CEO on 1 October 2024, having served as the CEO Designate since 1 July 2024 and, prior to that, CFO since 2023. Since joining, Andrea has set out ambitious growth plans, launching a new strategy and overseeing the transformation of the Group into the UK-focused wealth manager. On 1 November, Katherine Jones was appointed as CFO and joined Brooks Macdonald from Phoenix Group where she served as the Group Finance Director. The Board has been pleased with the pace of change in the execution of the strategy driven by Andrea, Katherine and the wider Executive team. People and culture In 2026, Brooks Macdonald will mark 35 years of serving clients in wealth management. Independent, and financially strong, we serve clients throughout their lives, thanks to the depth and breadth of our product offerings. I remain impressed by our colleagues in towns and cities across the UK who deliver a personalised service working with IFAs and directly with our financial planning clients, supported by the aim to deliver strong investment performance across different risk profiles.

We remain committed to diversity and inclusion with 43% of our Board Directors now being women. Our commitment is further reflected in our alignment with the Women in Finance Charter, and our increased target of 38% female representation in leadership by 2026. We became a member of the 30% Club as a further demonstration of our commitment to drive gender diversity and representation at senior levels. Our Brooks Financial Academy develops Chartered Financial Planners to develop the next generation of quality IFAs. Looking ahead Following a period of substantial change, Brooks Macdonald is well positioned for growth. On behalf of the Board, I want to thank all our colleagues, our CEO, Andrea Montague and her Executive Committee for their continued commitment to our Company and our clients. I am grateful to our shareholders for their ongoing support for Brooks Macdonald.

Annual General Meeting Shareholders are invited to participate in the AGM, and will have the opportunity to put questions to the Board directly, or email them in advance of the meeting. The AGM will take place on 28 October 2025 and will be held at our London head office. Details of all resolutions to be proposed at the 2025 AGM will be set out in the Notice of AGM, which will be published ahead of the meeting.

shareholder value and growth as this benefits all stakeholders. We remain committed to our progressive dividend policy, recommending a final dividend of 51.0 pence per share (2024: 49.0 pence), resulting in total dividend for the year of 81.0 pence per share (2024: 78.0 pence). This represents an increase of 3.8% and reflects the Board’s confidence in the Group’s balance sheet and medium-term prospects. If approved at the annual general meeting (“AGM”), the final dividend will be paid on 4 November 2025 to shareholders on the register at the close of business on 19 September 2025. In addition, having considered the strength of the balance sheet and the levels of surplus capital available, the Board decided to deploy the Group’s first ever share buyback programme of up to £10 million, which commenced in January.

Maarten Slendebroek Chair 3 September 2025

↗ Read more about how we engage with our stakeholders on pages 32 to 34

↗ Read more about our people on pages 36 to 40

Brooks Macdonald Group plc Annual Report and Accounts 2025

Governance Report

Financial Statements

Company Financial Statements

Strategic Report

CEO’s statement

This year, Brooks Macdonald has focused on the execution of our strategy to ʻ Reignite Growth ʼ , building momentum and creating the conditions for success. We’ve launched new products in MPS and Retirement Solutions to meet client needs, continued to support IFAs with their clients, expanded our financial planning business to reach more clients and delivered strong investment performance.”

Andrea Montague CEO

Our year in review I am pleased to present these results covering a year of change in the markets, for our sector and for our Company. Regulatory and government policy changes brought additional uncertainty and served to underline the need for trusted financial advice and wealth management now more than ever from Brooks Macdonald. We have reshaped the business and are now a UK-focused wealth manager, positioned to invest in the growth opportunities across our market.

Our clients Responding to feedback from our clients, we launched two new products in three months – Global Managed Portfolio Service and our innovative Retirement Strategies offering bespoke, tailored and modelled options to bring clients clarity, choice and confidence in their retirement planning. Our Retirement Strategies launch builds on our experience in this key area of retirement planning. With the growth in defined contribution pension schemes, managing drawdown is a growing challenge for many more people as they approach retirement. We are one of the first companies to offer modelled solutions for income drawdown. Initial interest has been strong.

Brooks Macdonald Group plc Annual Report and Accounts 2025

CEO’s statement continued

Our performance We reported FUMA of £19.2 billion

Our people As a wealth manager offering trusted financial advice, our people make the

Our Centralised Investment Proposition (“CIP”), a competitive differentiator for Brooks Macdonald, delivered another year of strong performance. Our BPS investment strategies have outperformed their relevant Asset Risk Consultants (“ARC”) peer group indices over one, three, five, and 10 years across all risk profiles. Our diversified positioning across regions, sectors, and styles ensures portfolios remain well-placed to capture opportunities and navigate the evolving macroeconomic landscape. Our company The sale of our international business focused Brooks Macdonald on the UK. The acquisition of three financial planning businesses scaled our financial advice business with new lines of business in mortgages, life insurance, benefits, sport, and charities. Our business is about building trusted relationships, and this means we are spending more time with our valued IFAs and direct financial planning clients across the country. We continue to invest in our operating platform to provide quality client service. In March, Brooks Macdonald moved from AIM to the Main Market of the LSE, broadening investor access.

I want to thank all Brooks Macdonald colleagues for their contributions to our results and in the execution of our strategy, and most importantly, our clients for their support. Change brings opportunities and I remain confident in our future to live our purpose to realise the ambitions and to secure the futures of our clients.

(2024: £16.4 billion), driven by acquisitions and positive market and investment performance. FUM was up 7.0% in the year, with investment performance of £0.7 billion more than offsetting the impact of net outflows. BPS outflows significantly improved in the second half along with strong inflows across our Platform MPS offering, especially in the final quarter, which delivered the best quarterly flow performance in two years with net outflows of £5 million. Our overall net outflows were at £396 million, with a notable improvement in the second half (H2 25: £134 million; H1 25: £262 million). Revenue increased by 4.6% to £111.6 million (2024: £106.7 million), supported by higher financial planning revenue from acquired businesses, partially offset by lower interest and fee income. The underlying costs excluding acquisitions were flat on the prior year, demonstrating the strict cost control. The underlying profit before tax reduced to £28.9 million (2024: £30.3 million) and the underlying profit margin was 25.9% (2024: 28.4%). Statutory profit before tax fell to £17.5 million (2024: £24.6 million), primarily due to the acquisitions related costs.

difference. We engage with our colleagues throughout the year through townhalls, small conversations and by visiting our offices. Our recent employee engagement survey has given valuable insight into views on career progression, learning and development and our culture. New appointments to our Executive Committee brought talent, expertise, diversity and experience. Together as a team we have moved at pace to bring our strategy to life. Looking ahead In conclusion, it has been a busy year as we have refocused the Group, added new capabilities and strengthened our leadership team with new hires. We are changing the way we work to deliver excellent customer service, to extend our client reach and, as we grow, secure efficiencies. There is more to be done, and I am confident we are creating the conditions for success. This coming year, we will continue to invest in growth, in technology and AI enablement to take our client service and efficiency to the next level. We will evolve our products so that they stand out in growth markets and continue to be relevant across all stages of our clients’ financial lifecycle.

Andrea Montague CEO 3 September 2025

Brooks Macdonald Group plc Annual Report and Accounts 2025

Governance Report

Financial Statements

Company Financial Statements

Strategic Report

Brooks Macdonald Group plc Annual Report and Accounts 2025

Market overview

Key macroeconomic trends UK October 2024 budget:

Sector-specific trends Growing market

US Election and ʻ Liberation Day ʼ tariffs: managing shock-and-reversal cycles The November 2024 clean sweep for President Trump and the Republican Congress rewired global risk premia overnight. Markets initially cheered the prospect of lower taxes and looser regulation, only to reverse when the ‘Liberation Day’ (2 April 2025) tariff package fuelled the stagflation risk of weaker growth and stickier inflation. The S&P 500 slid, the ‘Magnificent Seven’ group of mega-cap technology stocks slipped into a bear market, and investors witnessed the rare tandem of a falling US dollar and rising Treasury yields, indicating that investors were questioning US Treasury bonds’ ‘safe-haven’ status. How we responded Two decisions protected our clients through that turbulence. First, we had already started to diversify away from mega-cap concentration: our US underweight position meant we entered the sell-off with a more balanced style and market cap exposure, with the flexibility to further trim risk where companies looked most vulnerable. Second, our fixed-income positioning of 50% sovereign bonds and 50% investment-grade credit, targeting a lower than benchmark average duration, acted exactly as designed, counteracting equity drawdowns whilst capturing relatively attractive real yields. When President Trump announced a 90-day tariff pause, volatility halved and equities recouped most of the losses. We used that window to further reduce US weightings in low and medium-risk portfolios and reallocate capital into short-dated UK bonds. The result was that our portfolios participated in the rebound yet emerged with lower net exposure to the epicentre of policy uncertainty.

Looking ahead: tariffs, fiscal concerns and the case for discipline The relative calm seen in early summer could give way to renewed volatility as global markets digest the impact of President Trump’s new trade deals. Regardless of negotiation optics, corporate supply chains are already under disruption and capital- expenditure timetables may be deferred. At the same time, the US Government is set on an expansionary fiscal path that could widen deficits. That mix keeps bond-yields elevated and leaves central banks juggling conflicting mandates: supporting growth whilst anchoring inflation expectations. How we responded Against this backdrop, our Asset Allocation Committee has purposefully moved equities from a slight overweight back to neutral across all risk bands. Within equities, we spread risk across regions and market capitalisations, tilting toward lower-valuation areas such as the UK and Europe, whilst retaining thematic exposure to the technology theme favouring actively managed, less-concentrated vehicles. Within fixed income, we favour sovereign bonds and high-quality investment-grade credit with lower-duration exposure relative to benchmark. Real assets, now an integrated sleeve combining Property, Infrastructure and Alternative-Income, as a partial inflation hedge, offer a useful buffer if policy missteps lead to higher stagflationary risks. Structured return products, struck at conservative entry levels, round out the toolkit by delivering asymmetric pay-offs largely uncorrelated to traditional assets. In short, our strategy is not to predict the binary outcome of tariff negotiations, but to build portfolios to weather a wide range of macroeconomic scenarios.

from headline risk to strategic opportunity

The UK wealth market continues to grow significantly with an attractive outlook regardless of the underlying macroeconomic conditions. The fundamental opportunity for Brooks Macdonald remains strong and is improving, with scope to increase market share in all products. Our distribution model means we are well-placed to grow across both adviser solutions and direct wealth. Our core investment management and financial planning offering is well positioned to capture the market opportunity, given financial freedoms and the increased need for financial advice. We are adapting our offering both to meet short-term challenges in the marketplace and to cater to advisers’ and clients’ changing needs, with a strong set of specialised BPS products, including our Gilts and Retirement Strategies, further development of funds and unitised solutions tailored to the adviser, and consistent business-to-business BM Investment Solutions delivery. Sector consolidation The investment management competitive landscape is complex and highly fragmented, with numerous players and varying business models addressing different, but overlapping, segments of the market. Types of player include integrated wealth managers; IFAs who may conduct some, or all, of their own investment management; platform providers who serve advisers; those focused on providing model portfolios and fund solutions; and the wealth arms of the major high street banks and high-end private banks.

Last October’s Autumn Statement brought along tax rises, including increased employer National Insurance contributions and changes to Inheritance Tax (“IHT”), alongside measures to address the fiscal deficit whilst maintaining public spending support. Gilt yields initially drifted higher as investors pondered how the increased tax burden would impact the economy and how spending pledges would be funded. Uncertainty over the prospect of higher taxes and changes to IHT rules prompted many families and high-net-worth individuals to rethink their tax-optimisation strategies, leading to higher net outflows in the first half of the financial year. How we responded Our Asset Allocation Committee decided to rotate part of the allocations currently in property and alternatives in low-risk mandates into short-duration UK sovereign bonds and investment grade credit, hence locking in an attractive yield. The switch helped to cushion lower-risk client portfolios against any subsequent volatility and, more importantly, positioned us to harvest a higher running yield.

Brooks Macdonald Group plc Annual Report and Accounts 2025

Strategic Report

Governance Report

Financial Statements

Company Financial Statements

Regulatory The Financial Conduct Authority (“FCA”) has pivoted to outcomes-based regulation with a requirement for firms to show how they are set up to deliver good outcomes for clients. In particular, the Consumer Duty Principle in the FCA Handbook, which requires companies to ‘act to deliver good outcomes for retail customers’, has set higher and clearer standards of consumer protection across financial services, and applies to our business in both investment management and financial planning. Consumer Duty represents a significant change and opportunity for the wealth management industry, highlighting the importance of delivering good outcomes for our clients. We are well positioned for this with a strong client-centric culture. Given the significant growth across the MPS market in recent years, the FCA announced the planned multi-firm review of MPS providers, which will commence later in 2025. The review will look at how firms are applying the Consumer Duty and aims to provide confidence that investors are receiving good outcomes from MPS and will share good practices on how firms are doing this. Furthermore, the Advice Guidance Boundary Review is the FCA’s response to address the growing concern that most consumers in the UK are not getting the financial help they need. The FCA is running a consultation with the industry on a handful of different ways in which it can approach the savings and advice gaps. The consultation closed in August 2025, with the proposed policy statement on targeted support and a consultation paper on simplified advice expected over the coming year.

Digital technology Simple and intuitive digital tools, which provide easy access to information and allow personalisation, are increasingly becoming the norm. Digital technology and AI adoption are improving productivity, reducing time and enabling greater compliance. We continue to enhance our digital capabilities, with an increasing number of clients accessing our services via our InvestBM portal. Over the year, we have partnered with an AI provider to expand the use of AI across the Group. We have recently deployed digital factsheets and launched the Brooks Macdonald mobile application to further improve the client experience. Our technological improvements are aligned with good practice from a Consumer Duty perspective whilst also ensuring efficient and appropriate record keeping.

Over recent years, a major trend has been the increasing prevalence of vertical integration, with firms offering both financial planning and investment management. Over this financial year, we have acquired three financial planning businesses, which create a scale financial planning firm alongside our investment management business. We expect the overall sector consolidation to continue, and to supplement our growth strategy with selective high-quality acquisitions. More clients working with IFAs, and IFAs increasingly outsourcing Investors are increasingly working with IFAs – our primary distribution channel – as the need for clients to make complex financial decisions grows. In addition, advisers continue to look to outsource investment management to allow them to focus on advising their clients and reduce their regulatory and administrative burden. We continue to help advisers serve their clients in ways that work for both parties, applying our investment management expertise to protect and enhance clients’ wealth. We are flexible in our approach, offering bespoke portfolios with more specialist variants, as well as model-based and unitised solutions, alongside investment solutions options tailored to the needs and requirements of the IFAs. The growth in our Platform MPS proposition reflects that these solutions are sought by IFAs as they fulfil their regulatory requirements and provide attractive solutions for their clients.

Brooks Macdonald Group plc Annual Report and Accounts 2025

Our business model

Brooks Macdonald is a UK-focused wealth manager, which offers the full breadth of investment services and propositions with strong distribution via independent financial planners and advisers. Our advice-led business model and the growth opportunities available to us across the wealth management sector position us well to continue to generate long-term sustainable value for a wide range of stakeholders.

Our defining characteristics Brand recognition built on trust and long-standing client relationships We have been providing investment

What we do Investment Management

Who we work with Independent financial planners and advisers >1,000 IFAs across the UK c.90

Independent financial advice We only work with independent advisers and financial planners that provide ‘whole of market advice’. We believe this ensures that the client gets the best service and products for their financial needs.

• BPS • MPS • AIM portfolio service • Multi-asset funds • BMIS

management and financial planning since 1991. We are committed to innovation, exceptional client service, and building strong partnerships with financial advisers and our individual clients. The Brooks Financial Academy is creating a new cohort of independent chartered financial planners, who share our passion for delivering excellent client service. Experienced leadership Our leadership team has significant investment management expertise and strong capabilities in client and adviser engagement.

Financial Planning • Personal financial planning • Life insurance

financial planners and paraplanners

IFAs and financial planners choose Brooks Macdonald for the depth and breadth of our product offering, strong and sustained long-term investment performance, and the resources and capabilities we deploy in protecting and enhancing their clients’ wealth. They determine which service is most suitable for the client, based on the client’s risk profile and financial objective. We implement the service selected and work with the adviser to ensure the client’s portfolio is managed appropriately. In some cases, we provide an outsourced white-labelled service (BMIS), typically based on model portfolios or unitised solutions. Some clients approach us directly, and our team can provide wealth management advice that cover their entire financial lifecycle.

• Employee benefits • Mortgage advice • Tax guidance • Estate planning • High-value insurance • Charities

Depth and breadth of investment proposition

Our UK-wide network of IFAs, together with our financial planners, leverage our investment expertise and full suite of wealth solutions to support clients at every stage of their financial journey.

Our integrated wealth management solutions combine our expertise in financial planning and investment management which, alongside our comprehensive product and service offering, allow us to provide holistic advice, covering all aspects of clients’ financial lifecycles.

Centralised investment proposition CIP continues to deliver robust

Capital-light model and strong cash generation This allows us to invest in our business, continue to serve our clients and provide sustainable returns for our stakeholders.

investment returns over the long term, maintaining consistency of outcomes for clients and economies of scale for the Group.

↗ Read more on pages 14 to 21

14 Brooks Macdonald Group plc Annual Report and Accounts 2025 Brooks Macdonald Group plc 14

Strategic Report

Governance Report

Financial Statements

Company Financial Statements

How we make money

How we create value

Fee income Fee income consists of investment management and fund management fees. We earn investment management fees across our BPS, MPS Platform and MPS Custody offerings, which are calculated based on a percentage of assets under management. Fees for the BPS and MPS Custody offerings are billed quarterly in arrears. We charge fund management fees on our multi-asset funds, which are calculated on a daily basis at a percentage of the value of the portfolio or value of each fund, and is billed monthly in arrears. Financial planning income Clients pay a fee for advice provided by our financial planners. This can be a one- off charge, a fixed-fee arrangement or an ongoing fee based on the percentage of assets under advice. Transactional and FX income Transactional income is earned through dealing and admin charges levied on trades at the time a deal is placed for a client. Foreign exchange trading fees are charged on client trades placed in currencies, which require a foreign currency exchange to action the trade.

For clients Our relevant product offering and consistent investment returns help meet the needs of our clients across their financial lifecycle.

Gold for DFM Service

For employees Our people are the driving force behind our success, and we are committed to creating an environment in which every individual is supported, inspired and empowered to reach their full potential. For shareholders We generate sustainable returns over the long term and are committed to progressive dividend policy. In 2025 we also initiated a £10 million buyback programme.

75% employee engagement £20m returned to shareholders

Interest income Interest is earned on client cash deposits. Amounts shown are net of any interest passed on to clients.

£17k charitable donations

For communities and suppliers We behave responsibly and with integrity in the communities in which we operate, and treat our suppliers fairly.

2025 revenue split (£m)

7.6

14.0

7% reduction in GHG emissions

l Fee income l Financial planning income l Transactional and FX income l Interest income

For the environment We are committed to understanding and mitigating the environmental impact of our operations.

111.6

17.1

72.9

Brooks Macdonald Group plc Annual Report and Accounts 2025

Our business model continued

Investment Management Depth and breadth of our offering BPS is designed for clients who want an individual investment portfolio constructed to meet their specific requirements. MPS provides a choice of investment into a range of risk-managed model portfolios, each investing across a different mix of asset classes. Each model portfolio is designed to achieve specific investment objectives within a specific risk profile. Our multi-asset fund ranges allow investors to gain access to the Group’s investment management expertise and CIP through a pooled fund solution. The fund ranges cater for both investors seeking capital growth, and more cautious investors looking to generate income, whilst preserving their capital.

Centralised Investment Proposition Our CIP aims to provide a consistent investment strategy across the Group, regardless of investment manager, office location or specific solution chosen by the client. Our investment managers take an active role in the asset selection process, meaning we can truly tap into our team’s expertise.

Our BMIS proposition is a ʻwhite-labelʼ offering for advisers looking for investment solutions to meet client-specific investment objectives. It is delivered via an open-ended fund solution or an investment platform, in fund or model portfolio form. BMIS includes combined marketing efforts with co-branding of client-facing materials and other business support for the adviser. The Group’s AIM Portfolio Service provides clients with access to a carefully selected portfolio of AIM-listed companies that have attractive long-term investment potential.

The CIP is designed to: •

generate great ideas: we aim to foster an environment where investment insights are produced, shared, challenged, tested and widely adopted. • minimise biases: our committee-driven framework helps reduce behavioural biases through challenge and debate to produce solutions that can be evidenced and based on facts. • provide consistency: the CIP’s disciplined approach is leveraged across all of our investment services. • adapt to change: consistent monitoring,

research, challenge and oversight help us stay responsive to changing market dynamics.

Responsible Investment Service (“RIS”) Passive Platform or Custody Active

Direct Equities

Structured Products

Gilts

RIS Retirement Strategies

Volatility Managed

Retirement Strategies

Tax Management

Risk Controlled

Specified Portfolio Mandates Liquid Reserve

Cornelian Risk Managed

Mangaged Portfolio Service (MPS)

Bespoke Portfolio Service (BPS)

Fund Ranges

Blueprint Fund Range

Multi-Asset Funds

AIM Portfoilio Service

Advisers and clients

Tax

Brooks Macdonald Investment Solutions (“BMIS”)

16 Brooks Macdonald Group plc Annual Report and Accounts 2025 Brooks Macdonald Group plc 16

Strategic Report

Governance Report

Financial Statements

Company Financial Statements

Financial Planning We have been offering financial planning for over three decades. Our capabilities have significantly expanded this year through the acquisition of three financial planning businesses. Over the year, we focused on the integration of the new and existing financial planning operations, ensuring consistency and quality of service for all clients. We took the decision to structure our financial planning business around independent advice. Today, all our financial planners are independent and the majority are also chartered advisers. This provides assurance to our clients that they are in expert hands, supported by a team that offer in-depth research, technical analysis and excellent client service. We work with our clients to provide the best financial advice, ensuring they are on track to achieve their financial and lifestyle goals and objectives. Our financial planning offering is delivered through Brooks Financial, which includes: • Brooks Mortgages: ‘whole of market’ advice, supporting clients throughout their mortgage process. • Brooks Sport: we work with sports professionals from early in their career through to retirement and beyond. Our client list includes some of the notable footballers and other sports professionals. They trust us to create long-term financial security for them and their families.

• Brooks Insurance: our insurance brokers work with a selected panel of specialist insurance companies who understand the requirements of our clients. We work to minimise the ʻhassle factorʼ for our clients, helping with all aspects of insurance protection. • Brooks Benefits: we principally work with London-based FCA regulated firms, providing pension advice and scheme administration, employee benefit support and financial education and guidance. • Brooks Life: our experienced team provide comprehensive life insurance advice for a wide range of life events and individual circumstances. • Brooks Adroit: our team of fully independent financial planners specialise in a wide range of financial services, such as financial planning for individuals, trustees and families, investment services

2016 average IM returns

20.0 18.0 16.0 14.0 12.0 10.0

IMʼs Low IMʼs LowMed IMʼs Med IMʼs MedHigh IMʼs High BM Low Avg BM Low to Med Avg BM Med Avg BM Med to High Avg BM High Avg

8.0 6.0 4.0 2.0 0

1 Year Volatility

2024 average IM returns

20.0 18.0 16.0 14.0 12.0 10.0

IMʼs Low IMʼs LowMed IMʼs Med IMʼs MedHigh IMʼs High BM Low Avg BM Low to Med Avg BM Med Avg BM Med to High Avg BM High Avg

and wealth management, and expert witness services for law firms and their clients. Brooks Charities: we help charities meet their requirements through our services including investments, workplace pensions, employee benefits and insured benefits. We work with some of the UKʼs leading charities and have a long-standing relationship with the National Council for Voluntary Organisations, who have awarded us the rank of ʻtrusted supplierʼ.

8.0 6.0 4.0 2.0 0

•

1 Year Volatility

These charts show our ARC-compliant data submissions for all five risk profiles based on our individual investment managers for two specific periods in time. In 2016, the investment managers had greater tolerance in the application of the CIP in their clientʼs portfolios. This included their ability to allocate capital, in terms of asset allocation, and what they chose to populate a portfolio with, from a broad buy list. This period covers the Brexit period, so outcomes, when unconstrained, were broader in spread.

The 2024 comparison shows how the CIP has matured and evolved. with managersʼ outcomes now driven by a narrowing of permitted deviation around our central asset allocation and from a tighter (best ideas) focused buylist of permitted assets, along with greater collaboration.

Brooks Macdonald Group plc Annual Report and Accounts 2025

Our strategy: Reigniting Growth

We have refocused our strategy to take advantage of the growth opportunities in the UK wealth management sector. 2025 has been a transformational year, establishing strong foundation from which we continue to drive sustainable long-term growth.

Strategic priorities

Description

2025 progress

2026 priorities

Delivering excellent client service

This is at the heart of what we do. It is important we meet the evolving expectations of our clients by listening and understanding what they want, and responding with improvements to our service.

• New leadership • Strengthened client relationships • Better online experience • Strong investment performance • Scaled AI adoption • Award winning

• Launch new mobile app • Interactive access to product information • Digitise onboarding across all services • Expand the Brooks Financial Academy

Broadening and deepening our client reach

We will focus on taking the Group’s broad product range to our existing network and new connections, increase brand awareness and enhance client data analytics to support lead generation.

• Sold BM International business • Acquired three financial planning businesses • Structured approach with IFAs to build better understanding of our products and services • Extended the breadth of proposition • Improved brand awareness

• Adviser roadshows • Prioritise engaging with new model and national advisers • Strategic hires to accelerate revenue generation • Promote and scale our suite of Retirement Strategies • Enhance our offer to high-net worth clients

Driving scale and efficiencies

We will focus on building talent and execution capabilities to support delivery of client service, leverage automation across the front office and support teams to increase productivity, and optimise investment and client reporting processes to improve efficiency.

• FUMA increased by 17% to £19.2 billion • MPS annualised net flows of 14% • Simplifying and centralised processes • Journey towards paperless • Acquisition integration

• Group-wide AI strategy • ‘Fit for future’ data strategy • Digitise workflows and automate operations • Maintain BAU costs growth p.a.

• Rationalised supplier base • Flat BAU costs discipline

5% annualised net inflows

<5% BAU costs growth

Medium-term targets:

18 Brooks Macdonald Group plc Annual Report and Accounts 2025 Brooks Macdonald Group plc 18

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