Brewin Dolphin Holdings PLC (LON:BRW) announced a quarterly trading update for the third quarter of the financial year ending 30 September 2018.
· A quarter of record total income and continued strong organic growth in discretionary funds.
· Total funds in the quarter increased by 6.5% to £42.3bn (H1 2018: £39.7bn, FY 2017: £40.1bn).
o Core1 funds increased by 7.3% in the quarter to £40.9bn (H1 2018: £38.1bn, FY 2017: £37.4bn).
o Discretionary funds increased by 7.3% to £36.8bn (H1 2018: £34.3bn, FY 2017: £33.8bn) as a result of continued strong organic inflows and positive investment returns.
o Net discretionary funds inflows, including transfers, of £0.7bn representing an annualised growth rate of 8.2% (Q3 2017: 7.6%).
· Total income of £84.2m (Q3 2017: £77.3m), an increase of 8.9%.
o Core2 income of £82.2m up 11.2% on Q3 2017 (£73.9m) driven by strong year on year growth in core funds.
o Total fee income growth of 7.6% to £59.2m (Q3 2017: £55.0m).
o Total commission income of £18.3m (Q3 2017: £16.7m) following increases in transaction levels.
1 Core funds comprise discretionary funds, Brewin Portfolio Service (“BPS”) and execution only funds.
2 Core income is defined as income derived from discretionary investment management, financial planning, Brewin Portfolio Service (“BPS”) and execution only services.
David Nicol, Chief Executive said:
“It has been another excellent quarter in which we have continued to deliver on our long-term organic growth strategy. We are particularly pleased to have achieved another period of strong discretionary funds inflows which, combined with positive investment returns, has driven total income to a record £84.2 million for the quarter. The significant and evolving need for financial and investment advice in the UK continues to support our strategic direction and we remain confident in the outlook for the business.”