Brewin Dolphin (BRW) delivered an impressive full-year performance, given the tough trading climate, with total managed funds at the investment manager rising from £24bn to £25.9bn. Within that, funds managed on a discretionary basis - where management fees are higher - rose from £15.6bn to £18.2bn, with clients continuing to shift their funds across from being managed on an advisory basis.
That switch by investors - to a discretionary basis - boosted fee income by nearly 14 per cent in the period to £182.6m, although this was partly offset by a 16 per cent fall in commission income to £86.9m. Fund inflows of £1.5bn were offset by £1.1bn of outflows and £0.5bn transferred to execution only - but a positive market performance boosted funds by £2bn. Net cash outflow grew to £13.4m, much of which reflected expenditure on acquiring teams of investment managers and computer software. Although the move to a new computer system - which will take two years to complete - is expected to result in a significant increase in margins.
Numis Securities is forecasting a cash profit of £50.1m for 2013, giving EPS of 14.5p (2012: £42.1m/12.5p).
BREWIN DOLPHIN (BRW) | ||||
---|---|---|---|---|
ORD PRICE: | 190p | MARKET VALUE: | £474m | |
TOUCH: | 189-191p | 12-MONTH HIGH: | 191p | LOW: 128p |
DIVIDEND YIELD: | 3.8% | PE RATIO: | 21 | |
NET ASSET VALUE: | 65p* | NET CASH: | £72m |
Year to 30 Sep | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|
2008 | 32.0 | 12.4 | 7.10 |
2009 | 21.9 | 7.40 | 7.10 |
2010 | 31.4 | 9.70 | 7.10 |
2011 | 21.9 | 6.60 | 7.10 |
2012 | 29.9 | 9.10 | 7.15 |
% change | +37 | +38 | +1 |
Ex-div: 6 Mar Payment: 8 Apr *Includes intangible assets of £121m, or 48p a share |