Brooks Macdonald has recorded a 28.9% drop in its profit before tax in the year to 30 June, despite its funds under management and advice (FUMA) increasing by 17.3% to £19.2bn.

The UK-based wealth management firm saw its pre-tax profit fall to £17.5m in this period, as a result of higher acquisition and integration costs.

Its operating profit fell by 4.6% in the year to 30 June, while its earnings per share fell by 42.7% to 71.4 pence.

However, Brooks Macdonald’s revenue increased by 4.6% to £111.6m in this period, supported by higher financial planning income following acquisition and partially offset by lower interest income and lower fee income.

It also completed an £8.1m share buyback scheme, taking its total of acquired and cancelled shares to 538,000 to date.

The latest update comes after the firm sold Brooks Macdonald International to reshape the group and become a UK-focused wealth manager.

In its outlook, Brooks Macdonald said it remains focused on its Reignite Growth strategy, which includes organic investment to expand its technology and AI enablement, enhance its client services and evaluate M&A opportunities that align with its strategic.

It added that it is "creating the conditions for success" and sees "exciting growth opportunities" in front for the current financial year.

Chief executive officer at Brooks Macdonald, Andrea Montague, concluded: "This year we have focused on the execution of our strategy to Reignite Growth.

"We are now a UK-focused wealth manager. We have created a scalable financial planning business. We have launched a suite of retirement strategies that meet a growing client need and continue to deliver strong investment performance.

"We are building momentum and creating the conditions for success. I am confident in the outlook for the current financial year and beyond."

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