Financial Results

Brewin Dolphin Reports Rise In Funds, Income

Tom Burroughes, Group Editor, London, 26 January 2011

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UK-listed wealth management firm Brewin Dolphin said today that its income for the 14-week period to 31 December last year rose 15.9 per cent, year-on-year, to £65.9 million (around $104.03 million), while total managed funds rose by 6.9 per cent over the 14 weeks to £24.8 billion.

The 6.9 per cent rise in total managed funds compares with a 5.4 per cent rise in the FTSE 100 index of blue chip stocks, Brewin Dolphin said in a statement.

As the fourth-quarter and full-year reporting season kicks off - starting with a number of big US banks last week - most results have shown rising, or at least stable, revenues and gains in assets, buoyed by rising market levels last year.

The firm said its investment management commission at £25.3 million, however, rose by only £800,000 in the 14-week period compared with a year ago due to “low activity over the Christmas period”. More encouragingly, investment management management fees rose by £6.4 million to £26.5 million - a 32 per cent rise.

The group currently has a consolidated capital adequacy surplus of £15 million. The group's cash balances excluding client balances as at 31 December 2010 were £41 million.

The Financial Services Compensation Scheme announced on 20 January 2011 that there would be an interim levy on the industry for the cost of major investment failures relating to Keydata Investment Services Limited, Wills & Co and other investment intermediary firms. It is expected that this will cost Brewin Dolphin £6 million against a similar charge of £1 million last year.

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