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Brewin Dolphin Holdings PLC

Brewin Dolphin Holdings PLC Deliver strong and resilient organic growth

Brewin Dolphin Holdings PLC (LON:BRW) today announced interim management report for the half year ended 31 March 2019.

David Nicol, Chief Executive, said:
“In the first half of 2019, the Group has continued to deliver strong and resilient organic growth, even with the backdrop of volatile market conditions. This is demonstrated by the strength of our discretionary funds flows. Our strategy of focusing on our advice-led wealth management service in the direct market continues to deliver results.

We are investing in our business to support future long-term growth. Over the past few months we have announced the replacement of our core custody and settlement system and a number of acquisitions. These initiatives are laying the foundations for long-term growth and will ensure that we are well placed to capture market opportunities.”

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

– Total funds were £42.4bn (H1 2018: £39.7bn, FY 2018: £42.8bn).

– In the six months to 31 March 2019, the MSCI WMA Private Investor Balanced Index fell by 1.6% and the FTSE 100 Index fell by 3.1%.

– Discretionary funds of £37.5bn (FY 2018: £37.6bn) reflect continued organic growth offset by investment performance.

– Net inflows of discretionary funds, including transfers, of £0.8bn (H1 2018: £1.3bn) represent an annualised growth rate of 4.3% (H1 2018: 7.7%).

– Total income for the period increased marginally to £162.3m (H1 2018: £161.8m) due to largely flat average funds over the period.

– Total costs of £127.6m excluding adjusted1,3 items (H1 2018: £123.3m), 3.5% increase in-line with expectations from spending on growth initiatives and infrastructure projects.

– Profit before tax and adjusted1,3 items of £35.6m, 8.2% lower than H1 2018 (£38.8m).

– Statutory profit before tax of £29.7m, 12.9% lower than H1 2018 (£34.1m).

– Adjusted1,3 earnings per share:

– Diluted earnings per share2 decreased by 8.3% to 9.9p (H1 2018: 10.8p).

– Basic earnings per share decreased by 9.7% to 10.2p (H1 2018: 11.3p).

– Statutory earnings per share:

– Diluted earnings per share of 8.1p (H1 2018: 9.4p).

– Basic earnings per share of 8.3p (H1 2018: 9.7p).

– Interim dividend of 4.4p per share announced (2018 interim: 4.4p per share).

1. Adjusted items are amortisation of client relationships – £3.3m (H1 2018: £4.0m), defined benefit pension scheme past service costs – £1.9m (H1 2018: £nil), acquisition costs – £0.5m (H1 2018: £nil), incentivisation awards £0.2m (H1 2018: £0.6m), onerous contracts – £(0.04)m (H1 2018: £0.4m) and FSCS levy refund £nil (H1 2018: £0.3m).

2. See note 8.

3. See Group’s 2018 Annual Report and Accounts page 34 for explanation of adjusted profit before tax and why the adjusted measures have been chosen.

Declaration of Interim Dividend
The Brewin Dolphin Board declares an interim dividend of 4.4p per share. The interim dividend is payable on 14 June 2019 to shareholders on the register at the close of business on 24 May 2019 with an ex-dividend date of 23 May 2019.