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Brewin Dolphin Holdings Plc - Preliminary Report

Brewin Dolphin Holdings PLC

Preliminary Report For the Year Ended 30 September 2019

Another period of strong organic funds inflows with the Group making progress on its strategic plan.

Financial Highlights

  • Total funds were £45.0bn, an increase of 5.1% (2018: £42.8bn).
  • Discretionary funds of £40.1bn, including acquired funds of £0.3bn, (2018: £37.6bn) reflect continued organic growth and positive investment performance.
  • Discretionary net funds inflows of £1.4bn (2018: £2.3bn) represent an annualised growth rate of 3.7% (2018: 6.8%).
  • Profit before tax and adjusted1 items of £75.0m, 3.2% lower than 2018 (£77.5m) in-line with expectations.
  • Statutory profit before tax of £62.6m, 8.6% lower than 2018 (£68.5m).
  • Total income for the period increased by 3.1% to £339.1m (2018: £329.0m).
  • Total costs of £265.7m excluding adjusted1 items (2018: £252.3m), 5.3% increase due to planned spending on growth initiatives and infrastructure projects.
  • Adjusted1 earnings per share:
  • Diluted earnings per share2 of 20.5p (2018: 21.7p).
  • Basic earnings per share of 21.2p (2018: 22.5p).
  • Statutory earnings per share:
  • Diluted earnings per share of 16.6p (2018: 18.9p).
  • Basic earnings per share of 17.0p (2018: 19.5p).
  • Full year dividend 16.4p (2018: 16.4p), final dividend of 12.0p per share (2018: 12.0p per share). 

1. See Financial Review for a reconciliation of profit before tax and adjusted items to statutory profit before tax and an explanation of adjusted performance measures.

2. See note 9.

Business Highlights

  • Continued strong funds growth, driven by a year of positive net inflows.
  • Successfully completing three acquisitions; increasing funds, advice-led capacity and geographical footprint.
  • Completed the acquisition of Investec Capital and Investments (Ireland) Limited on 31 October 2019.
  • Technology infrastructure projects on track, supporting our growth strategy.
  • Client offering expanded through MPS expansion and 1762 from Brewin Dolphin propositions.
  • Balance sheet remains strong. 

David Nicol, Chief Executive, said:

"I am very pleased with our financial performance, particularly over the second half of the year. The Group has continued to deliver strong and resilient organic growth, against the continued uncertain economic and political backdrop. This is demonstrated by the strength of our discretionary funds flows. Our strategy of focusing on our advice-led wealth management service continues to deliver results.

We continue to invest in our business to support future long-term growth. We have completed and integrated a number of strategic acquisitions and the replacement of our core custody and settlement system is on track. These initiatives are laying the foundations for long-term growth and will ensure that we are well placed to capture future market opportunities."

Declaration of Final Dividend

The Board is proposing a final dividend of 12.0p per share, to be approved at the 2020 AGM and to be paid on 12 February 2020 to shareholders on the register at the close of business on 10 January 2020 with an ex-dividend date of 9 January 2020.