Brewin Dolphin (BRW) is reaping the benefits of building up its discretionary management services. In addition to broadening its product range to attract more adviser intermediaries, the wealth manager is increasingly integrating financial planning and discretionary investment management services. During the six months to March, more than 16 per cent of direct private clients received this combined service. Management hopes to increase this to 30 per cent within the next two to three years.
Discretionary funds under management increased 9 per cent on the previous year to £31.5bn. This compared with a 5 per cent increase in the relevant MSCI sector index, while discretionary net inflows hit a record £1.1bn. The direct service reversed the net outflows suffered during the previous 12 months, generating net new business.
Its intermediary service - Managed Portfolio Services - gained £0.5bn in net new business, double that achieved in the same period last year. It now manages £1.8bn on behalf of intermediaries across 11 platforms. A passive-based version of its MPS was also launched and more investment was put into client-facing technology. Chief executive David Nicol believes active management and advice add enough value to withstand pressure from passive products.
Analysts at Peel Hunt expect adjusted pre-tax profits of £67.5m during the 12 months to September 2017, giving EPS of 18.7p (from £61m and 16.8p in 2016).
BREWIN DOLPHIN (BRW) | ||||
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ORD PRICE: | 328p | MARKET VALUE: | £929m | |
TOUCH: | 327.4-328p | 12-MONTH HIGH: | 339p | LOW: 207p |
DIVIDEND YIELD: | 4.1% | PE RATIO: | 16 | |
NET ASSET VALUE: | 87p* | NET CASH: | £152m |
Half-year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2016 | 137 | 21.5 | 6.3 | 3.85 |
2017 | 147 | 28.4 | 8.2 | 4.25 |
% change | +7 | +32 | +30 | +10 |
Ex-div: 25 May Payment: 16 Jun *Includes intangible assets of £76m, or 27p a share |