Wealth manager Brooks Macdonald Group has issued a profit correction today after identifying a £5m error on its full year figures published in September.
The error means that the statutory pre-tax profit for 2022 was £29.5m and not £34.5m, as quoted last month by the company.
The company said the error appeared on the Regulatory News Service on 15 September and on page 36 of the Annual Report and Accounts for the year ended 30 June 2022, published on 23 September.
The error meant that Statutory pre-tax profit and earnings before interest, tax, depreciation and amortisation (EBITDA) showed an error in the calculation of Statutory EBITDA.
Underlying EBITDA in the original table was correct but the Statutory EBITDA was overstated by £5.0m in Full Year 2022 and £5.5m in Full Year Y21. The correct figures are shown below in the second table:
Incorrect figures published in September
|
|
FY22 £m |
FY21 £m |
Change % |
|
Underlying profit before tax |
34.5 |
30.6 |
12.7 |
|
Add back: |
|
|
|
|
Net finance costs |
0.2 |
0.2 |
- |
|
Depreciation and underlying amortisation |
4.0 |
5.4 |
(25.9) |
|
Underlying EBITDA |
38.7 |
36.2 |
6.9 |
Correct figures published in October
|
|
FY22 £m |
FY21 £m |
Change % |
|
Statutory profit before tax |
29.5 |
25.1 |
17.5 |
|
Add back: |
|
|
|
|
Net finance costs |
0.3 |
0.6 |
(50.0) |
|
Depreciation and amortisation |
9.5 |
10.3 |
(7.8) |
|
Statutory EBITDA |
39.3 |
36.0 |
9.2 |
Source: Brooks Macdonald
The company said that the rest of the Full Year 2022 results announcement remains unchanged. It pointed out that EBITDA is not one of the group's key performance indicators and none of the group's key performance indicators, including statutory and underlying profit, are affected by the correction.
Brooks Macdonald has expanded rapidly in recent years both by acquisition and organic growth. In September it added £350m in assets and 650 clients with the acquisition of Manchester specialist adviser firm Adroit Financial Planning. Adroit is an IFA specialising in the personal injury and clinical negligence sector.