This was a solid performance from Brewin Dolphin, as a mixture of favourable equity markets and more investors helped to push underlying pre-tax profits up from £32.1m to £40.2m and adjusted EPS up 16 per cent to 12.5p.
Total managed funds under management rose from £20.5bn to £23.2bn, reflecting the benefit of rising equity prices and a net £1.6bn net inflow. This helped to boost fee and commission income from £204m to £240m. What's more, there was a continued shift towards clients' money being managed on a discretionary basis where the manager takes a greater part in the investment decision making process, but also charges a higher fee for doing so. Operating profits from this side of the business rose 29 per cent from £19.4m to £25.1m, while advisory management fees increased from £11.2m to £13.2m.
Brewin Dolphin has also worked to extend the branch network by creating four new investment management teams, and the group now has 628 FSA registered client executives. The much smaller corporate advisory and broking side faced a much tougher trading climate, given the high level of uncertainty and volatility, but a small improvement in overall income and a tight rein on costs meant profits up significantly from £0.15m to £2.3m.
BREWIN DOLPIN (BRW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 147p | MARKET VALUE: | £338m | |
| TOUCH: | 146-148p | 12-MONTH HIGH: | 172p | LOW: 113p |
| DIVIDEND YIELD: | 4.8% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 61p | NET CASH: | £86.9m | |
| Year to 26 Sep | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|
| 2006 | 31.1 | 11.1 | 5.25 |
| 2007 | 39.9 | 14.5 | 6.88 |
| 2008 | 32.0 | 12.4 | 7.10 |
| 2009 | 21.9 | 7.4 | 7.10 |
| 2010 | 31.4 | 9.7 | 7.10 |
| % change | +43 | +31 | - |
Ex-div: 9 Mar Payment: 5 Apr *Includes intangible assets of £91.1m, or 40p a share | |||
