Brooks Macdonald Group has announced its financial results for the first half of 2026, posting an underlying profit before tax of £13.6m ($18.3m), down 12% from £15.5m reported in the same period last year.

Revenue increased by 12%, reaching £58.2m, mainly due to growth in financial planning and fee income.

This was partly offset by reduced interest and transactional income.

Total funds under management and advice grew to £20.1bn, up from £19.1bn at the end of June 2025.

Of this total, £17.8bn was managed directly, while £2.3bn represented advised-only assets.

Net inflows amounted to £2m, reversing net outflows of £262m recorded in the first half of 2025.

This marks the first time since the second half of 2023 that the company has reported positive net flows for a half-year period.

Underlying costs, excluding acquisitions and net finance income, rose by 3% to £45.4m.

Including acquisition-related costs, total underlying costs increased by 20% from the previous year’s £37.8m.

The board has proposed an interim dividend of 31.0 pence per share, a 3% increase.

The group also reported a “consistent” year-on-year double-digit growth in managed portfolio service, which it launched last year. 

Commenting on the outlook, the company said: “We remain focused on delivering our ‘Reignite Growth’ strategy and expect to continue to invest organically in initiatives aligned to our strategic priorities, as well as reviewing potential financial planning M&A opportunities.” 

Additionally, Brooks Macdonald highlighted continued work on its ‘Reignite Growth’ initiative, with investments in digital infrastructure, AI applications and product development.

The company has begun using AI to cut down on administrative workload and restructured parts of the organisation, resulting in annualised savings of £3m.

The group reported a 4% increase in bespoke portfolio service assets.

There was also a nearly 50% reduction in net outflows from bespoke portfolios, an 8% rise in high-net-worth clients, and a rise of 4% in advisers using multiple bespoke services.

Following the establishment and integration of Brooks Financial, annualised cost efficiencies exceeded £1m and client retention held at 98%.

For the remainder of the year, Brooks Macdonald expects revenue patterns from the first half to continue into the second half.

Costs before accounting for the FSCS levy are expected to remain similar to those seen earlier this year.

The company anticipates full-year results will match current market expectations and maintains its medium-term goals for net inflows and cost growth.