UK wealth management giant Brewin Dolphin’s has recorded a severe decline in profits for this year.
UK wealth management giant Brewin Dolphin has recorded a severe decline in profits for this year.
It follows a writedown in its headline IT project and heavy redundancy costs. Pre-tax profit fell 70 per cent to £8.6 million ($13.4 million) in the 12 months to 28 September, down from £28.4 million in 2013. This is a result of a £34 million writedown after dropping plans to implement the Figaro software package across its wealth management business.
The wealth manager also recorded redundancy costs of £2.3 million through closures of its Chester, Dorchester, Guernsey, Stoke, Truro, Lymington and York offices and surplus property costs of £2 million.
"We reassessed a significant software project and this has resulted in a material impairment charge, as previously announced," said David Nicol, chief executive.
Its fee income was up 17 per cent to £177 million during the year, up from £152 million in 2013 whilst discretionary funds grew 7 per cent across the year and now make up 82 per cent of Brewin’s total managed funds.
Fee income now accounts for 67 per cent of core income, up from 62 per cent in 2013. Income from advisory services fell 9 per cent to £31.6 million, down from £34.7 million in the previous year.