Reigniting growth - Annual Report and Accounts 2024

Strategic Report

Governance Report

Financial Statements

Other Information

Segmental analysis

Table 6 – Segmental analysis

UK Investment Management International

Group and consolidation adjustments

For FY24, the Group continued to report its results across two key operating segments, UK Investment Management and International. The tables below provide a breakdown of the full-year performance broken down by these segments, with comparatives. UKIM, which includes the Group’s Private Clients business, increased its revenue by 4.7%, driven by higher financial planning revenue of £1.7 million as a result of the full period impact of the acquisitions, along with £2.2 million additional Investment Management fees and £1.8 million additional transactional income. These uplifts were offset by a decline in Fund Management fees. Total underlying costs increased by 8.6% as a result of the factors outlined previously, including the full-period impact of the acquisitions. This gave rise to an underlying profit for FY24 of £33.5 million (FY23: £34.5 million) and an underlying profit margin of 30.9% (FY23: 33.3%). The International segment reported reduced revenues of £19.9 million, down 2.0% from the prior year, with reductions in Investment Management fees, Fund Management fees and Interest income, slightly offset by increases in Transactional and foreign exchange fees. The total International cost base reduced by 16.2%, as a result of the organisational restructure and cost discipline. This resulted in underlying profit increasing from £0.1 million to £3.3 million this year, and an underlying profit margin of 16.6% (FY23: 0.5%).

FY24 (£m)

Total 128.3

Revenue

108.4

19.9

(97.1)

Direct costs

(47.9) 60.5 (28.7)

(11.1)

(38.1) (38.1)

31.2

Operating contribution Indirect cost recharges Net finance income

8.8

(6.0)

34.7

2.9

1.7

0.5 3.3

0.7

Underlying profit/(loss) before tax

33.5

(2.7) (13.6) (16.3)

34.1

(22.5)

Underlying adjustments

(5.3)

(3.6) (0.3)

Statutory profit/(loss) before tax

28.2

11.6

Underlying profit margin before tax Statutory profit/(loss) margin before tax

30.9% 26.0%

16.6% (1.5)%

N/A N/A

26.6%

9.0%

UK Investment Management International

Group and consolidation adjustments

FY23 (£m)

Total 123.8 (94.4)

Revenue

103.5

20.3

Direct costs

(47.4)

(13.6)

(33.4) (33.4)

Operating contribution Indirect cost recharges Net finance income

56.1

6.7

29.4

(22.1)

(6.8)

28.9

0.5

0.2 0.1

0.2

0.9

Underlying profit/(loss) before tax

34.5

(4.3) (0.3) (4.6)

30.3

Underlying adjustments

(4.8)

(3.0) (2.9)

(8.1)

Statutory profit/(loss) before tax

29.7

22.2

Underlying profit margin before tax Statutory profit/(loss) margin before tax

33.3% 28.7%

0.5%

N/A N/A

24.5% 17.9%

(14.3)%

Brooks Macdonald Group plc Annual Report and Accounts 2024

35

Made with FlippingBook - professional solution for displaying marketing and sales documents online