Notes to the consolidated financial statements continued For the year ended 30 June 2025
14. Business combinations continued
15. Earnings per share The Board of Directors considers that underlying earnings per share provides an appropriate reflection of the Group’s performance in the financial year. Underlying earnings per share are calculated based on ‘underlying earnings’, which is defined as earnings after underlying adjustments listed below. The tax effect of these adjustments has also been considered. Underlying earnings is an alternative performance measure (“APM”) used by the Group. Refer to page 162 for a glossary of the Group’s APMs, their definition and criteria for how underlying adjustments are considered. Earnings for the financial year used to calculate earnings per share as reported in these consolidated financial statements were as follows:
14(b) Acquisition impact on reported results In the period from acquisition to 30 June 2025, the consolidated statement of comprehensive income included revenue of £9,025,000 and statutory profit before tax of £2,797,000 from the acquired entities. Had the acquired entities been consolidated from 1 July 2024, the consolidated statement of comprehensive income would have included revenue of £19,188,000 and statutory profit before tax of £5,035,000. 14(c) Net cash outflow resulting from business combinations
CST £’000 4,600
Lucas Fettes £’000
LIFT £’000 39,030
Total £’000
2024 restated 1
10,163
53,793
Total purchase consideration
2025 £’000 11,630 9,354 20,984 4,390 3,997
Note
£’000 20,379 (13,922)
(500)
(206)
–
(706)
Less shares issued as consideration Less deferred cash contingent consideration at fair value Cash paid for acquired businesses Less cash held by acquired entities
Earnings from continuing operations
(1,378)
(4,282)
(8,899) 30,131 (2,185)
(14,559) 38,528 (4,378)
Earnings/(loss) from discontinued operations Earnings after tax attributable to ordinary shareholders Acquisition and integration related costs Amortisation of acquired client relationships
13
2,722
5,675
(1,299)
(894)
6,457
Net cash outflow – investing activities
433
1,423
4,781
27,946
34,150
3,383 2,129
2,084 1,926 1,278
Organisational restructure
Move to LSE’s Main Market costs
– –
Head office relocation Other non-operating items
(2,289) (1,770) (9,354)
(258)
Tax impact of underlying profit adjustments Less (earnings)/loss from discontinued operations Underlying earnings attributable to ordinary shareholders from continuing operations
12 13
(1,362) 13,922
21,246
24,704
1 The prior financial year has been restated to separate the results of discontinued operations, consistent with the presentation in the current financial year. Refer to note 13 for details of the results of discontinued operations. In addition, 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. Other non-operating items primarily relates to a refund from HMRC (£3.1 million) in respect of VAT arising on the Group’s AIM Portfolio Services as it was confirmed this was exempt from VAT, covering the period from 1 October 2019 to 30 September 2024. This is partially offset by legacy legal costs (£0.3 million) and strategy-related review costs conducted as a result of the significant business change following the acquisitions and BMI disposal (£0.5 million). These items are excluded from underlying results in view of their non-recurring nature.
134
Brooks Macdonald Group plc Annual Report and Accounts 2025
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