Final Results

Brooks Macdonald Group PLC
13 September 2006





BROOKS MACDONALD GROUP PLC (THE 'GROUP' OR THE 'COMPANY')


FINAL RESULTS FOR THE YEAR ENDED 30 JUNE 2006



Brooks Macdonald Group plc is an integrated private client discretionary asset
management and financial advisory group.



Financial and business highlights


  • Pre tax profit of GBP 0.82 million

  • Pre tax profit up by 32 per cent

  • Turnover up from GBP 5.67 million in 2005 to GBP 8.17 million, a rise of
    44 per cent

  • Discretionary funds under management up from GBP 411.9 million in 2005 to
    GBP 638.3 million a rise of 54 per cent

  • Proposed dividend increased to 1.5p per share payable on 20 October 2006
    to shareholders on the register on 22 September 2006



Chris Macdonald, Chief Executive, said:


'The Group has had a strong year of growth and my colleagues on the Board join
me in believing that Brooks Macdonald Group plc is well positioned to perform
strongly for the 2007 financial year and beyond.


Demand for our services remains strong not only in the high net worth private
client market but also with our increasing number of professional connections.
This has raised turnover and substantially increased our funds under management
over the past year. We will continue to invest in organic growth but in addition
continue to look to expand by the recruitment of high quality, experienced
individuals or teams.'



Enquiries


Chris Macdonald Chief Executive               Simon Jackson Finance Director
[e-mail]           [e-mail]




BROOKS MACDONALD - CHAIRMAN'S STATEMENT

Our first full year as a listed company has been one of considerable progress:
turnover was GBP 8.17 million, an increase of 44 per cent; pre-tax profit was
GBP 0.82 million compared with GBP 0.62 million in 2005, an increase of 32 per
cent; and funds under management rose by 54 per cent from GBP 412 million to GBP
638 million.

The Board has decided to recommend a dividend of 1.5p per share, compared with
1.0p per share for the previous financial year.



ASSET MANAGEMENT

Our objectives remain unchanged - to provide a high level of service and
superior investment returns. We focus on the provision of bespoke investment
management for private clients, charities, trusts and SIPPs. Over 60 per cent of
our new business over the last year has been represented by SIPPs, which remain
a major source of business for Asset Management, our professional introducers
and our own Financial Consulting company.

Our growth strategy continues to concentrate on developing relationships with
professional introducers to whose clients we offer fee based bespoke portfolio
management. It is a measure of our investment performance, service levels and
marketing success that our funds under management have grown by 54 per cent over
the last financial year whereas the FTSE100 has risen by 13.7 per cent and the
more relevant APCIMS Balanced Index has grown by 10.4 per cent over the same
period.

We have launched our Inheritance Tax service; a Property service; and our
Managed Portfolio service, a fund of funds for smaller portfolios. Our Portfolio
of Absolute Return Strategies ('PARS') has provided stable market neutral
returns and continues to be popular with introducers and clients alike. In the
coming months, led by client demand, we intend to launch two offshore unit
trusts.

Four experienced fund managers have been successfully recruited this year to add
to our existing first-class home-grown team. We shall continue to recruit when
we can do so with confidence. We shall also continue our graduate trainee
programme which will enable the Group to build capacity for the future.

Brooks Macdonald Services was established earlier this year to provide our own
nominee, custody and dealing services. It was launched for new clients in April
2006 and for existing clients in August 2006. This has involved considerable
infrastructure investment, which as well as improving our reporting (both web
and paper) to clients and professional introducers, has given us the ability to
expand our back office capability without a commensurate increase in costs.


FINANCIAL CONSULTING

Brooks Macdonald Financial Consulting, our independent financial consulting arm,
had a successful year with a significant increase in turnover. The results
reflect its growing profile in the legal, accountancy and banking sectors, from
which it generates a substantial proportion of its new business, and increased
client activity driven by changes in legislation in the fields of pension and
inheritance tax planning.

Financial Consulting continues to expand in its five key areas, namely employee
benefits, mortgage broking, tax planning, pension provision and financial
planning. Over the coming year we will continue to look to build the business
around these areas by increased marketing, the continued recruitment of
specialist advisors and utilising our increased profile in the professional
sector.

Through Financial Consulting we remain committed to the provision of independent
fee-based advice in the 'high net worth' marketplace.


OUTLOOK

We are confident that we can continue to build on what Brooks Macdonald Group
plc has achieved since listing. Our confidence is based on providing a quality,
bespoke financial advisory and investment service to private clients, a service
for which the Board believes there is increasing demand.

Our confidence also reflects the commitment and enthusiasm of our staff, most of
whom are stakeholders in the business and to whom we extend our thanks.


Christopher Knight
Chairman



                           Brooks Macdonald Group plc



                      Consolidated Profit and Loss Account

                        For the year ended 30 June 2006



                                                                  2006              2005(restated)
                                                       £             £             £             £

Turnover                                                     8,168,713                   5,667,469

Administrative costs                                       (7,767,849)                 (5,325,892)
                                                               400,864                     341,577

Other operating income                                         155,460                     159,730

Operating profit                                               556,324                     501,307

Income from current asset                 
investments                                        7,191                          83
Interest receivable                              257,509                     120,337
                                                               264,700                     120,420
Profit on ordinary activities                                
before tax                                                     821,024                     621,727

Tax on profit on ordinary                                
activities                                                   (237,794)                   (160,645)

Profit on ordinary activities after                          
taxation                                                       583,230                     461,082

Dividends paid                                                (98,110)                    (55,569)

Retained profit for                                            
the year                                                       485,120                     405,513

Earnings per share

Basic                                                            5.95p                       5.16p
Diluted                                                          5.60p                       5.12p





None of the Group's activities was acquired or discontinued during the above two
financial years.



The Group has no recognised gains or losses other than the profit for the above
two financial years.



                           Brooks Macdonald Group plc


                 Consolidated Balance Sheet as at 30 June 2006


                                                                    2006             2005(restated)
                                                          £            £             £            £


Fixed assets

Tangible assets                                                  169,468                    118,954

Current assets

Debtors                                           1,960,876                  1,143,784
Investments                                              37                     18,022
Cash at bank and in hand                          3,532,442                  2,716,227

                                                  5,493,355                  3,878,033
Creditors, amounts falling due within     
one year                                        (2,346,329)                (1,261,898)


Net current assets                                             3,147,026                  2,616,135

Total assets less current liabilities                          3,316,494                  2,735,089

Creditors, amounts falling due after           
more than one year                                               (26,563)                   (32,813)

Provisions for liabilities                                     (193,300)                  (148,030)

Net assets                                                     3,096,631                  2,554,246

Financed by:


Capital and reserves


Called up share capital                                           98,131                     98,110
Share premium                                                  1,365,910                  1,362,666
Merger reserve                                                   191,541                    191,541
Share option reserve                                              54,000                          -
Profit and loss account                                        1,387,049                    901,929

Shareholders funds                                             3,096,631                  2,554,246







                           Brooks Macdonald Group plc



                           Group Cash Flow Statement

                        For the year ended 30 June 2006


                                                         2006                        2005
                                                   £                £             £               £


Net cash inflow from operating                   
activities                                                    886,832                       561,403

Returns on investments and servicing of finance
                                                                               
                                                  
Investment income received                          -                            83
Interest received                               257,509                     120,337
                                                              257,509                       120,420
Taxation
                                                            (146,553)                      (85,461)

Corporation tax paid

Capital expenditure and financial investment
                                            

Purchase of plant and equipment               (111,905)                    (78,671)
Purchase of investments                            -                        (6,001)                           
                                               
Sale of investments                              25,177                           -
                                                             (86,728)                      (84,672)

Equity dividends paid                                        (98,110)                      (61,358)

Financing
                                               

Increase in share capital                         3,265                   1,148,751
                                                                3,265                     1,148,751

Net cash inflow in year                                       816,215                     1,599,083

Net funds at beginning of year                              2,716,227                     1,117,144
Net inflow                                                    816,215                     1,599,083

Net funds at end of year                                    3,532,442                     2,716,227




Brooks Macdonald Group plc





Note 1 Basis of accounting and preparation


The financial statements have been prepared under the historical cost convention
and in accordance with applicable accounting standards.  The principal
accounting policies of the Group have remained unchanged from the previous year
and are set out below.

The Group has applied the requirements of FRS 20 Share-based Payment. The Group
engages in equity settled share-based payment transactions in respect of
services received from certain employees. The fair value of the options granted
is determined using option pricing models, which take into account the exercise
price of the option, the current share price, the risk free interest rate, the
expected volatility of the Company's share price over the life of the option/
award and other relevant factors.

On 28 January 2004, the company acquired 100 per cent of the issued ordinary
share capital of Brooks Macdonald Financial Consulting Limited by means of a
share for share exchange as part of a group reorganisation.

The Group has used merger accounting to account for the group reconstruction
effected by the acquisition by the company of the interest in Brooks Macdonald
Financial Consulting Limited and its subsidiary company.  The financial
statements are therefore presented as if Brooks Macdonald Financial Consulting
Limited and its subsidiary had been owned and controlled by the Group throughout
the comparable year.

Comparatives have been restated in respect of the presentation of dividends in
accordance with FRS 21 - Events after the balance sheet date.



Note 2 Earnings per share

Basic earnings per share are calculated by dividing the Group profits after tax
of GBP 583,000 by 9.81m, the weighted average number of ordinary shares in issue
over the year ended 30 June 2006. The resultant earnings per share for the year
are 5.95p



Note 3 Statutory accounts

The financial information set out above does not constitute the Group's
statutory information for the year ended 30 June 2006 but is derived from those
accounts. Statutory accounts for the year will be delivered to the Registrar of
Companies following the Company's annual general meeting. The auditors have
reported on these accounts, their reports were unqualified and did not contain
statements under the Companies Act 1985, s237 (2) or (3).



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