Strategic Report
Governance Report
Financial Statements
Other Information
Earnings per share
Financial position and regulatory capital
Table 8 – Underlying EBITDA reconciliation
FY24 £m
FY23 £m
Change %
Basic statutory earnings per share for the Group in FY24 was 40.1p (FY23: 114.7p), reducing as a result of the goodwill impairment charge. On an underlying basis, basic earnings per share was 163.8p representing an increase of 6.5% on the prior year (FY23: 153.8p) driven by the increase in underlying earnings. (Details on the basic and diluted earnings per share are provided in Note 11 of the Consolidated financial statements). Dividend The Board recognises the importance of dividends to shareholders and the benefit of providing sustainable shareholder returns. In determining the level of dividend in any year, the Board considers a number of factors, such as the level of retained earnings, future cash commitments, statutory profit cover, capital and liquidity requirements and the level of profit retention required to sustain the growth of the Group. The Board has proposed a final dividend of 49.0p per share (FY23: 47.0p). Including the interim dividend of 29.0p per share (FY23: 28.0p), this results in a total dividend for the year of 78.0p per share (FY23: 75.0p), which is an overall increase of 3.0p or 4.0%. (Refer to Note 12 to the Consolidated financial statements for more details). The recommended dividend is subject to shareholders’ approval, which will be sought at the Company’s Annual General Meeting on 24 October 2024.
Net assets were £152.3 million at 30 June 2024 (FY23: £157.3 million), demonstrating the Group’s robust financial position. The Group’s tangible net assets (net assets excluding intangibles) was £69.1 million at 30 June 2024 (FY23: £56.7 million). As at 30 June 2024, the Group had regulatory capital resources of £75.7 million (FY23: £64.6 million). As at 30 June 2024, the Group had an own funds adequacy ratio of 348.5% (FY23: 328.1%). The own funds adequacy ratio is defined as the Group’s own funds as a proportion of the fixed overhead requirement. The total net assets and the own funds adequacy ratio calculation take into account the respective year’s profits (net of the declared interim dividends) as these are deemed to be verified at the date of publication of the annual results.
Underlying profit before tax
34.1
30.3
12.5%
Add back: Net finance income
(2.9)
(0.9)
222.2%
4.6
Depreciation and amortisation
3.8
21.1% 7.8%
Underlying EBITDA
35.8
33.2
Table 9 – EBITDA reconciliation
FY24 £m
FY23 £m
Change % (47.7)%
Statutory profit before tax
11.6
22.2
Add back: Net finance income
(2.9) 10.6 11.6
(0.8)
262.5%
Depreciation and amortisation
9.5
11.6%
Goodwill impairment
–
N/A
EBITDA
30.9
30.9
–
Reconciliation between profits and earnings before interest, tax, depreciation and amortisation (“EBITDA”) Tables 8 and 9 provide reconciliations between the Group’s underlying and statutory profit before tax and the underlying and statutory earnings before interest, tax, depreciation and amortisation (“EBITDA”), which constitutes an APM, and which the Board considers to be an appropriate alternative measure to the Group’s BAU performance.
Taxation The Group’s total tax charge for the year was £5.2 million, representing an increase of 26.8% from last year (FY23: £4.1 million). The Group’s underlying effective tax rate has increased from 19.7% to 22.7% and the statutory effective tax rate increased from 18.4% to 44.4%. This has been contributed to by the goodwill impairment not deductible for tax purposes, the increased CT rate in the current year and under provision from prior period tax charges. (Details on taxation are provided in Note 9 of the Consolidated financial statements).
Brooks Macdonald Group plc Annual Report and Accounts 2024
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