Brewin Dolphin Holdings PLC
01 June 2004
1st June 2004
BREWIN DOLPHIN HOLDINGS PLC
INTERIM RESULTS FOR THE 26 WEEKS TO 26 MARCH 2004
Highlights
• Total income £59 million (2003: £46 million) an increase of 28%.
• Profit £8.9 million before tax and goodwill amortisation (2003: £1.6
million) an increase of 5 times.
• Profit £6.5 million before tax but after goodwill amortisation (2003: loss
£0.6 million)
• Diluted earnings per share excluding goodwill amortisation 3.0p (2003:
0.5p) an increase of 6 times
• Basic and diluted earnings per share 2.0p (2003: (0.6)p)
• First interim dividend of 1.5p per share (2003: 1.0p).
• Funds under discretionary management £5.1 billion (September 2003: £4.9
billion, March 2003: £4.5 billion).
• Advisory funds remain around £9 billion.
Sir Fred Holliday, Chairman said:
'The start of the second part of the year has continued to benefit from the
improvement in investor confidence. Brewin Dolphin continues to grow the funds
under discretionary management. We are also attracting high quality
professionals and this month are opening a new branch in Exeter, extending our
coverage in the West Country.'
For further information
John Hall
Brewin Dolphin 020 7248 4400
Anthony Kennaway/Sarah Gestetner
Citigate Dewe Rogerson 020 7638 9571
CHAIRMAN'S STATEMENT
I am pleased to report that profits before tax and goodwill amortisation for the
first half of our current financial year were £8.9m as compared to £1.6m twelve
months ago and £7m two years ago. Profit for the half year before tax but after
goodwill amortisation amounted to £6.5m compared to a loss of £0.6m last year,
and a profit of £6m in the comparative period in 2002.
We have seen a welcome improvement in the investment climate during the period,
certainly by comparison with 2003, the first part of which, it will be recalled,
was a particularly depressed time in markets. To put our current figures in
context it is necessary to go back two years. The FTSE 100 Index then averaged
5200 against 3800 last year and 4300 this year. The extent of the recovery in
our company's figures reflects the fact that the measures we have already taken
to reduce the firms cost base have had a positive effect.
The first interim dividend of 1.5p per share (2003: 1.0p) was declared at our
AGM and paid on the 6th April 2004. The Board will consider the payment of the
second interim dividend in September and it would be paid towards the end of
October.
The start of the second part of the year has continued to benefit from the
improvement in investor confidence. Brewin Dolphin continues to grow the funds
under discretionary management which now stand at £5.1bn. This compares with
£4.9bn at the year-end and £4.5bn a year ago. Funds under advice remain around
£9bn. We are also attracting high quality professionals and this month are
opening a new branch in Exeter, extending our coverage in the West Country.
Sir Fred Holliday
1 June 2004
INDEPENDENT REVIEW REPORT TO BREWIN DOLPHIN HOLDINGS PLC
Introduction
We have been instructed by the company to review the financial information for
the six months ended 26 March 2004, which comprises the consolidated profit and
loss account, the consolidated balance sheet, the consolidated cash flow
statement and related notes 1 to 5. We have read the other information contained
in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.
This report is made solely to the company in accordance with Bulletin 1999/4
issued by the Auditing Practices Board. Our work has been undertaken so that we
might state to the company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the company, for our review work, for this report, or for the conclusions we
have formed.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom auditing standards and therefore
provides a lower level of assurance than an audit. Accordingly, we do not
express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 26 March 2004.
Deloitte & Touche LLP
Chartered Accountants
London
1 June 2004
Unaudited Interim Consolidated Profit Statement
For the 26 weeks to 26 March 2004 (2003: 26 weeks)
Notes 26 weeks 26 weeks 52 weeks
to to to
26 March 28 March 26 September
2004 2003 2003
£'000s £'000s £'000s
Turnover 54,773 41,917 93,533
Other operating income 4,146 4,052 7,512
58,919 45,969 101,045
Staff costs (29,034) (24,984) (55,795)
Other operating costs
operating costs (22,248) (20,177) (42,520)
goodwill amortisation (2,345) (2,196) (4,279)
(24,593) (22,373) (46,799)
(53,627) (47,357) (102,594)
OPERATING PROFIT/(LOSS) 5,292 (1,388) (1,549)
Other interest receivable and similar income 1,264 812 1,694
Interest payable and similar charges (22) (20) (70)
PROFIT ON ORDINARY ACTIVITIES BEFORE
GOODWILL AMORTISATION 8,879 1,600 4,354
Goodwill amortisation (2,345) (2,196) (4,279)
PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE
TAXATION 6,534 (596) 75
Tax on profit/(loss) on ordinary activities (2,588) (497) (1,034)
PROFIT/(LOSS) ON ORDINARY ACTIVITIES AFTER 1 3,946 (1,093) (959)
TAXATION
Dividends 2 (2,932) (1,911) (3,825)
1,014 (3,004) (4,784)
EARNINGS PER SHARE
Basic 2.0p (0.6)p (0.5)p
Diluted 2.0p (0.6)p (0.5)p
Excluding goodwill amortisation
Basic 3.1p 0.5p 1.5p
Diluted 3.0p 0.5p 1.4p
'000s '000s '000s
Average number of shares in issue 193,292 191,008 191,081
Average number of shares in issue - fully diluted 198,923 194,855 197,442
CONSOLIDATED BALANCE SHEET AS AT 26 MARCH 2004
Notes As at As at As at
26 March 28 March 26 September
2004 2003 2003
£'000s £'000s £'000s
FIXED ASSETS
Intangible assets 38,315 42,122 40,202
Tangible assets 7,961 11,548 9,050
Investments 431 431 431
46,707 54,101 49,683
CURRENT ASSETS
Investments 263 501 374
Debtors 201,891 169,160 152,377
Cash at bank and in hand 36,547 25,903 26,526
238,701 195,564 179,277
CREDITORS: amounts falling due within one year (206,410) (171,154) (151,974)
NET CURRENT ASSETS 32,291 24,410 27,303
TOTAL ASSETS LESS CURRENT LIABILITIES 78,998 78,511 76,986
PROVISIONS FOR LIABILITIES AND CHARGES 3 (2,355) (2,533) (2,606)
SHAREHOLDERS' FUNDS 4 76,643 75,978 74,380
CONSOLIDATED CASH FLOW STATEMENT
FOR THE 26 WEEKS TO THE 26 MARCH 2004 (2003: 26 WEEKS)
26 weeks 26 weeks 52 weeks
to to to
26 March 28 March 26 September
2004 2003 2003
£'000s £'000s £'000s
Net cash inflow/(outflow) from operating activities 13,311 (1,544) 1,951
Return on investment and servicing of finance 1,242 792 1,624
Taxation (1,286) (1,438) (2,425)
Capital expenditure (1,127) (706) (1,802)
Acquisitions (298) (951) (1,111)
Equity dividends paid (1,913) (2,860) (4,772)
CASH INFLOW/(OUTFLOW) BEFORE FINANCING 9,929 (6,707) (6,535)
Financing 941 9 188
INCREASE/(DECREASE) IN CASH IN THE PERIOD 10,870 (6,698) (6,347)
Notes to the cash flow statement
RECONCILIATION OF OPERATING PROFIT/(LOSS) TO
OPERATING CASH FLOW
Operating profit/(loss) 5,292 (1,388) (1,549)
Depreciation and amortisation 4,561 5,371 11,048
Increase/(decrease) in provisions 80 (1,050) (681)
Movement on other current assets 3,378 (4,477) (6,867)
Net cash inflow/(outflow) from operating 13,311 (1,544) 1,951
activities
ANALYSIS OF NET FUNDS
2004 Cash flow 2003
£'000s £'000s £'000s
Firm's cash 25,347 10,584 14,763
Firm's overdrafts (3) 849 (852)
Firm's net funds 25,344 11,433 13,911
Client settlement cash 11,200 (563) 11,763
Net cash 36,544 10,870 25,674
Notes
26 weeks 26 weeks 52 weeks
to 26 March to 28 March to 26 September
2004 2003 2003
£'000s £'000s £'000s
1. Attributable earnings
Basic profit/(loss) for the period and 3,946 (1,093) (959)
attributable earnings
2,345 2,196 4,279
Goodwill amortisation
(251) (163) (494)
less tax on goodwill amortisation
Adjusted attributable earnings 6,040 940 2,826
2. Dividend
First interim dividend, paid 6 April 2004, 1.5p per share 2,932 1,911 3,825
(2003: 1.0p)
3. Provision for liabilities and charges
Provision for Deferred Total
split capital taxation
trust liabilities
£'000s £'000s £'000s
Balance at 27 September 2003 1,819 787 2,606
Charge for the period 293 (331) (38)
Utilised during the period (213) - (213)
Balance at 26 March 2004 1,899 456 2,355
The Group continues to monitor its split capital liabilities. A small additional provision has been made
in relation to ongoing costs.
4. Movement in shareholders' funds
Other reserves Share capital Total
and premium
including
shares to be
issued
£'000s £'000s £'000s
Balance at 27 September 2003 (8,684) 83,064 74,380
Reduction in shares to be issued in - (2,000) (2,000)
period
Issue of shares in period - 2,880 2,880
Prior period goodwill adjustment 369 - 369
Profit for the period 3,946 - 3,946
Dividend (2,932) - (2,932)
Balance at 26 March 2004 (7,301) 83,944 76,643
5. The interim accounts, which are unaudited, have been prepared on the basis
of the accounting policies set out in the Annual Report 2003. The figures shown
for the full year ended 26 September 2003 represent an abridged version of the
audited financial statements of Brewin Dolphin Holdings PLC for that year, which
have been filed with the Register of Companies and on which the auditors have
given an unqualified report which did not contain statements under section 237
(2) or (3) of the Companies Act 1985. The financial information contained in
this interim report does not constitute the Group's statutory accounts within
the meaning of section 240 of the Companies Act 1985. A copy of this statement
is available the Company's registered office at 5 Giltspur Street, London EC1A
9BD and a copy will be posted to all shareholders.
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