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 of a non-recurring nature or a non-cash operating item. The Board considers the disclosed APMs to be an appropriate reflection of the Group’s performance.
to be excluded from underlying profit as an alternative performance measure compared to statutory profit, it must initially meet at least one of the following criteria: • It is unusual in nature, e.g. outside the normal course of business and operations. • It is a significant item, which may be recognised in more than one accounting period. • It has been incurred as a result of an acquisition, disposal or a company restructure process.
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
The Group uses the below APMs:
Equivalent IFRS measure Statutory profit before tax
APM
Definition and purpose
Underlying profit before tax
Calculated as profit before tax excluding income and expense categories, which are deemed of a non-recurring nature or a non-cash operating item. It is considered by the Board to be an appropriate reflection of the Group’s performance and considered appropriate for external analyst coverage and peer group benchmarking. See page 36 for a reconciliation of underlying profit before tax and statutory profit before tax, and an explanation for each item excluded in underlying profit before tax. Calculated as the statutory tax charge, excluding the tax impact of the adjustments excluded from underlying profit. See Note 9 of the Consolidated financial statements. Calculated as underlying profit before tax less the underlying tax charge. See Note 11 of the Consolidated financial statements for a reconciliation of underlying profit after tax and statutory profit after tax. Calculated as underlying profit before tax over revenue for the year. This is another key metric assessed by the Board and appropriate for external analyst coverage and peer group benchmarking. Earnings before interest, tax, depreciation and amortisation (“EBITDA”). Underlying EBITDA is EBITDA excluding income and expense categories, which are deemed of a non-recurring nature or a non-cash operating item. See page 37 for reconciliation between EBITDA and underlying EBITDA and profit measures. Calculated as underlying profit after tax divided by the weighted average number of shares in issue during the year. This is a key management incentive metric and is a measure used within the Group’s remuneration schemes. See Note 11 of the Consolidated financial statements for the earnings per share. Calculated as underlying profit after tax divided by the weighted average number of shares in issue during the 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 11 of the Consolidated financial statements for the earnings per share. Calculated as total administrative expenses, other net gains/(losses), finance income and finance costs and excluding income and expense categories, which are deemed of a non-recurring nature or a non-cash operating item, which are listed on page 36. This is a key measure used in calculating underlying profit before tax. See page 34 for details on underlying costs. Calculated as profit before tax, excluding income and expense categories, which are deemed of a non-recurring nature or a non-cash operating item for each segment. See Note 3 of the Consolidated financial statements for the segmental information.
Underlying tax charge Statutory tax charge
Underlying earnings/ Underlying profit after tax Underlying profit margin before tax
Total comprehensive income
Statutory profit margin before tax
EBITDA/Underlying EBITDA
N/A
Underlying basic earnings per share
Statutory basic earnings per share
Underlying diluted earnings per share
Statutory diluted earnings per share
Underlying costs
Statutory costs
Segmental underlying profit before tax Segmental underlying profit before tax margin
Segmental statutory profit before tax Segmental statutory profit before tax margin
Calculated as segmental underlying profit before tax over segmental revenue.
Own Funds Capital Adequacy Ratio
N/A
Calculated as the Group’s total regulatory resources relative to its Fixed Overhead requirement.
172 Brooks Macdonald Group plc Annual Report and Accounts 2024
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