Assets, Underlying Profits Rise At Brewin Dolphin As Firm Plans Share Placing

Tom Burroughes, Group Editor, London, 29 May 2013


London-listed Brewin Dolphin said today its total managed
funds rose to £28.1 billion ($42.3 billion) at the end of March this year, up
from £25.7 billion a year ago, while adjusted pre-tax profits rose in the six
months to 31 March to £23.8 million, up from £18.9 million a year before.

Diluted earnings per share stood at 7.1 pence, up from 5.5 pence
a year before, up by 29.1 per cent.

The adjustment to profit figures excluded the effects of
redundancies, an additional compensation scheme levy, “onerous” lease
provisions and amortisation of client relationships, Brewin Dolphin said in a
statement. Without adjustments, pre-tax profit fell to £6.9 million in the half-year
period to 31 March from £12.3 million a year before.

The underlying profit growth was driven by increased income,
9 per cent higher than the same period last year, together with improved
efficiency as reflected in the increase in adjusted profit before tax margin to
17 per cent from 15 per cent in the previous period, the firm said.           

"We are now two years into the transformation and growth
strategy announced in 2011. We have made good progress against our stated
objectives, including delivering strong growth in funds under management.  Our strategy has two main objectives:
continued strong growth and increased efficiency. These objectives are
underpinned by a series of initiatives to transform the business which will
improve efficiency, ensure it is best placed to meet regulatory demands, and at
the same time continue to enhance client service and improve shareholder
returns,” David Nicol, chief executive, said.

Separately, Brewin Dolphin announced it plans to raise up to
around £40 million via a share placing to raise added capital, to be used to
accelerate its business strategy and stay competitive.

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