Brewin Dolphin Hldgs

Final Results

Brewin Dolphin Holdings PLC
01 December 2004


1 December 2004
                            The Brewin Dolphin Group
                              Preliminary Results

     
•    Total income £121 million (2003 : £101 million)

•    Discretionary funds were £5.6 billion at 24 September 2004 (2003: £4.9 
     billion)

•    Profit before tax and goodwill amortisation £16.1 million  (2003 : £4.4 
     million)

•    Profit before tax but after goodwill amortisation  £11.3 million (2003 : 
     £0.1 million)

•    Diluted earnings per share before goodwill amortisation 5.6p (2003 : 1.4p). 
     Basic earnings per share before goodwill amortisation 5.7p (2003 : 1.5p).
     Diluted earnings per share after goodwill amortisation 3.4p (2003 : 
     (0.5p)). Basic earnings per share 3.5p (2003 : (0.5p))

•    Total dividend 3.5p (2003 : 2.0p) per share


Sir Fred Holliday, Chairman, said: -

'Our company has continued to make steady progress adding to our size in terms
of branches, client executives, clients and funds under management.  We expect
this trend to continue, indeed such growth is a key element of our strategy.'


For further information

John Hall, Chief Executive
Brewin Dolphin 020 7248 4400

Toby Mountford/Anthony Kennaway
Citigate Dewe Rogerson 020 7638 9571



Chief Executive's Report

It is a pleasure to be able to report a strong recovery in your company's
fortunes in the year to 24 September 2004.

Group total income increased by 20% to £121m (2003 £101m) whilst profits before
tax and goodwill amortisation amounted to £16.1m (2003 £4.4m).  Fully diluted
earnings per share, before goodwill amortisation, were 5.6p (2003 1.4p) and
fully diluted earnings per share after goodwill amortisation were 3.4p (2003
(0.5p)).

In recognition of these results the second interim dividend was increased to 2p
(2003 1p) per share restoring the total payment to 3.5p for the year, the level
paid in 2002.

Our Chairman has referred to the growth we have seen in branches, client
executives, clients and funds under management and this has been most
encouraging.  It reflects the distinct approach we have always offered which
combines the opportunity for individual fund management,  supported by in-depth
research within a quality controlled environment, whilst the use of model
portfolios and structured products can be applied as appropriate.  It is this
formula, which the management has reinforced, that continues to attract high
quality investment managers, their clients and new business.

A breakdown of our income and operating profits before tax and goodwill
amortisation between various activities is set out in Note 1. Total income from
portfolio management, our core activity, rose during the year from £87m to
£102m.  This had a direct effect on the bottom line as the operating profit rose
from £1.1m to £10.6m.

The encouraging results from the portfolio management activities have been
achieved despite some onerous administrative responsibilities.  Not least of
these being sending out new Questionnaires and Agreements to all our clients,
the majority of which have now been returned. This is something all firms will
have to address in the near future given the new European directives.  The scope
of this documentation is far more detailed than previously required and greatly
increases the extent of our knowledge about our clients and their requirements,
which will be of considerable value in advising them in the future.  We are very
grateful to our clients for their forbearance and their excellent response.  The
estimated cost of this exercise this year was over £1m.

One of the outcomes of this exercise has been for us to look closely at our
clients, particularly those who are advisory who have not in the past paid an
annual fee and been relatively inactive.  The result is reflected in the figures
for our funds under management as the total funds under advice remains at £9.3bn
the same value as last year, but all are now paying fees.  Good growth was seen
in the discretionary funds under management, which rose to £5.6bn from £4.9bn a
year previously, an increase of 14.3% compared to an increase of 4.6% in the
FTSE 100 Index.  There is a further £1.3bn stock held in our nominee through
Stocktrade, our 'Execution Only' Division. The total value of funds in our
custody for clients is £12.3 billion, with a further £4.6 billion held on our
valuation system.

The sheer volume of new regulation and directives coming through from Brussels
is a concern and is putting strains on the Financial Services sector both in
terms of time and cost.  One fears the UK's propensity to gold plate any
European directive without any cost/benefit analysis.  We will continue to lobby
for the introduction of effective EU regulation, which is in the interests of
investors and which does not increase the costs to them or have the effect of
limiting the options and services, which can be offered.  The impact of much of
the regulation being debated can be expected in 2006/7.

A pensions crisis has built up in the UK and we, like others, have taken action
on our own staff Retirement Benefit Scheme which from April 2004 was closed to
new members and also to employees under the age of 55.  During the year this
scheme's assets increased from £25m to £29m, however the net deficit after tax
remains at £9m after an actuarial increase in the assumed rate of inflation. It
is our current intention to pay this deficit off over the next ten years and
welcome the realistic approach taken by the Financial Services Authority to the
impact of this liability on capital requirements for up to three years.

In 2002, an exceptional provision of £2.5m was established in relation to split
capital trusts.  During the past two years this provision has been utilised to
meet costs and claims.  It will be seen from the accounts that the Directors
believe no further provision of this type need be made.  The setting up of a
fund under the auspices of the Financial Services Authority for the benefit of
those who lost money in Zero Dividend Preference Shares is under close
consideration.  The Directors believe such a fund would be in the best interests
of our clients and shareholders.  The Board is also of the opinion that whilst
any  exceptional ex gratia contribution it might agree is likely to be material
in the context of the Group's profit and loss account for the year ended 2005,
it would not be material in relation to the Group's total assets, the capital
adequacy margin would remain well above the regulatory requirement.

Our corporate finance and institutional arm increased income from £9.2m to
£12.9m and operating profit to £2m from £1.6m.  We have taken the decision to
develop this division and have plans to expand it further in the spring.  Last
year's good results were achieved through the raising of capital and other
activities, in the main for existing clients.  However, I am glad to say that we
have recently seen an encouraging improvement in the new issue market.

It is also pleasing to see that Stocktrade, our 'Execution Only' division,
increased its turnover from £4.8m to £6.4m and recorded an operating profit of
some £400,000 against a marginal loss last year. Stocktrade has specialised in
providing execution-only dealing services to SIPP administrators, one of the
fastest growing areas in the financial services sector and to companies
operating savings schemes on behalf of their employees.  The division provides
share dealing services to 30 FTSE 100 companies and to 79 other PLCs.

Following a review of accounting policies in accordance with best practice, the
Directors have decided to revalue the Group's holding in Euroclear Plc. This has
had a beneficial effect.  Previously shown at cost, the valuation of £7.5m was
supported by an independent firm of accountants not connected with our audit,
who reviewed the methodology used.   The holding arises from investments in
CRESTCo Ltd, which was taken over by Euroclear Plc in 2002.

Over the last three years there has been some comment that equities were no
longer the place for private investors' savings.  We never believed this and are
much encouraged by the renewed strength of equity markets this autumn. This is
especially so as the residential property market has weakened over the same
period.  Given the relatives to their long term valuations, equities do look the
better value and we expect them to outperform residential property and bonds in
the coming year.

This year's results have only been achieved as a result of a great deal of hard
work and I would like to add my thanks to those of Sir Fred to all the members
of our staff.  Their support, but most of all their attention to our clients'
needs, is all important.

John Hall
30 November 2004


CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE 52 WEEKS TO 24 SEPTEMBER 2004 (52 WEEKS TO 26 SEPTEMBER 2003)

                                                 Note             2004                      2003
                                                              52 Weeks                  52 Weeks
                                                            Continuing                Continuing
                                                            operations                operations
                                                                 Total                     Total
                                                                £000's                    £000's

Turnover                                                       113,007                    93,533
Other operating income                                           8,397                     7,512
 TOTAL INCOME                                       1          121,404                   101,045

Staff costs                                                   (62,252)                  (55,795)
Other operating costs
  operating costs                                             (46,145)                  (42,520)
  goodwill amortisation                                        (4,839)                   (4,279)
                                                              (50,984)                  (46,799)
                                                             (113,236)                 (102,594)
OPERATING PROFIT/(LOSS)                                          8,168                   (1,549)
Other interest receivable and similar income                     3,148                     1,694
Interest payable and similar charges                              (42)                      (70)

Profit on ordinary activities before
goodwill amortisation                                1          16,113                     4,354
Goodwill amortisation                                          (4,839)                   (4,279)

PROFIT ON ORDINARY ACTIVITIES BEFORE
TAXATION                                            1           11,274                        75

 Tax on profit on ordinary activities               2          (4,510)                   (1,034)

PROFIT/(LOSS) ON ORDINARY ACTIVITIES AFTER
TAXATION                                                         6,764                     (959)

Equity dividends                                    3          (6,843)                   (3,825)

                                                                  (79)                   (4,784)

EARNINGS PER SHARE
       Basic                                        4             3.5p                    (0.5)p
       Diluted                                      4             3.4p                    (0.5)p
Excluding goodwill amortisation
       Basic                                        4             5.7p                      1.5p
       Diluted                                      4             5.6p                      1.4p
       

CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

FOR THE 52 WEEKS TO 24 SEPTEMBER 2004 (52 WEEKS TO 26 SEPTEMBER 2003)

                                                       Note       2004                      2003
                                                                £000's                    £000's

Profit/(loss) on ordinary activities after                       6,764                     (959)
taxation
Revaluation of investment in Euroclear plc               7       7,069
                                                                                         -
Total recognised gains and losses for the                       13,833                     (959)
period



CONSOLIDATED BALANCE SHEET AS AT 24 SEPTEMBER 2004 (26 SEPTEMBER 2003)

         FIXED ASSETS
                 Intangible assets                              38,589                    40,202
                 Tangible assets                                 7,208                     9,050
                 Investments                              7      7,500                       431

                                                                53,297                    49,683

         CURRENT ASSETS
                 Investments                                       298                       374
                 Debtors                                       200,374                   152,377
                 Cash at bank and in hand                       50,701                    26,526

                                                               251,373                   179,277
      CREDITORS: amounts falling due within                  (219,424)                 (151,974)
                 one year                                                                

         NET CURRENT ASSETS                                     31,949                    27,303

       TOTAL ASSETS LESS CURRENT
       LIABILITIES                                              85,246                    76,986

       PROVISION FOR LIABILITIES AND CHARGES    6                   -                    (2,606)

         NET ASSETS                                             85,246                    74,380

         CAPITAL AND RESERVES
                 Called up share capital                         1,955                     1,915
                 Shares to be issued                             3,400                     3,000
                 including premium
                 Share premium account                          79,081                    78,149
                 Revaluation reserve                     7       7,069                     -
                 Merger reserve                                  3,929                     2,013
                 Profit and loss account                      (10,188)                  (10,697)

         EQUITY SHAREHOLDERS' FUNDS                      5      85,246                    74,380



CONSOLIDATED CASH FLOW STATEMENT
FOR THE 52 WEEKS TO 24 SEPTEMBER 2004 (52 WEEKS TO 26 SEPTEMBER 2003)
                                                                     2004                        2003
                                                                 52 weeks                    52 weeks
                                                                   £000's                      £000's

Net cash inflow from operating activities (see                     32,207                       1,951
below)
Return on investments and servicing of finance                      3,106                       1,624
Taxation                                                          (4,402)                     (2,425)
Capital expenditure                                               (2,600)                     (1,802)
Acquisitions                                                        (445)                     (1,111)
Equity dividends paid                                             (4,846)                     (4,772)

INFLOW/(OUTFLOW) BEFORE FINANCING                                  23,020                     (6,535)
Financing (see below)                                                 949                         188

INCREASE/(DECREASE) IN CASH IN THE PERIOD                          23,969                     (6,347)

NOTES TO THE CASH FLOW STATEMENT

RECONCILIATION OF OPERATING  PROFIT/(LOSS)
         TO OPERATING CASH FLOW
         Operating profit/(loss)                                    8,168                     (1,549)
         Depreciation and amortisation                              9,281                      11,048
         Decrease in current asset investments                         76                         120
         (Increase)/decrease in debtors                          (47,451)                       6,792
          Increase/(decrease) in creditors                         63,952                    (13,779)
          Decrease in provisions                                  (1,819)                       (681)

Net cash inflow from operating activities                          32,207                       1,951

Financing
     Issue of shares for cash                                         949                         188

                                                                      949                         188


RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
Increase/(decrease) in cash in the period                           23,969                     (6,347)
Net funds at start of period                                        25,674                      32,021

Net funds at end of period                                          49,643                      25,674

ANALYSIS OF NET FUNDS
                                                                      2004        Cash flow       2003
                                                                    £000's           £000's     £000's

Firm's cash                                                         38,982           24,219     14,763
Firm's overdraft                                                   (1,058)            (206)      (852)
Firm's net cash                                                     37,924           24,013     13,911
Client settlement cash                                              11,719             (44)     11,763
Net funds                                                           49,643           23,969     25,674



NOTES


1. TOTAL INCOME AND PROFIT BEFORE TAX                      2004                   2003
                                                       52 weeks               52 weeks
                                              Total      Profit      Total      Profit
                                                         before                 before
                                             income    taxation     income    taxation
                                             £000's      £000's     £000's      £000's

Discretionary portfolio management           52,593       5,477     42,636         543
Advisory portfolio management                49,523       5,090     44,377         566
Stocktrade (execution only)                   6,373         414      4,819        (40)
Corporate finance and institutional          12,915       2,026      9,213       1,661
OPERATING PROFIT before tax and goodwill
amortisation                                             13,007                  2,730
Interest                                                  3,106                  1,624

PROFIT before tax and goodwill                           16,113                  4,354
amortisation
Goodwill amortisation                                   (4,839)                (4,279)

                                            121,404      11,274    101,045          75


 2. TAX ON PROFIT ON ORDINARY ACTIVITIES
                                                           2004                   2003
                                                       52 weeks               52 weeks
                                                         £000's                 £000's

United Kingdom corporation tax based on
the taxable profit for the period at 30%
(2003 30%)
                  Current                                 5,161                  2,184
                  Prior year                                563                  (534)
              Overseas tax
                  Current                                   119                     73
                  Prior year                                  -                      9

                                                          5,843                  1,732
                  Deferred - UK only                      (603)                (1,053)
                  Prior year deferred -                   (730)                    355
                  UK only

                                                          4,510                  1,034

The current tax charge for the period
exceeds 30% (2003 30%) for the following
reasons: -

Tax on ordinary activities at the
standard rate 30% (2003 30%)                              3,382                     23
Goodwill amortisation - disallowed                          943                    790
proportion
Leasehold property depreciation                             116                    140
Deferred tax timing differences                             603                  1,053
Prior year tax                                              563                  (525)
Disallowable expenses and other timing
differences                                                 236                    251

                                                          5,843                  1,732


                                                           2004                   2003
                                                       52 weeks               52 weeks
3. DIVIDENDS                                             £000's                 £000's

First interim dividend paid on 7 April 2004 of 1.5
per share  (2003 1.0p per share)                          2,933                  1,912
Second interim dividend paid on 25 October 2004 of
2.0p per share  (2003 1.0p per share)                     3,910                  1,913

                                                          6,843                  3,825

4.  EARNINGS PER SHARE
                                                             No                     No
                                                          000's                  000's

Basic
Weighted average number of shares in issue in the       194,418                191,081
period

Diluted
Weighted average number of options outstanding for        1,580                  1,177
the period
Estimated weighted average number of shares earned
under deferred consideration arrangements                 3,960                  5,184

Diluted weighted average number of
shares in issue in the period                           199,958                197,442

                                                         £000's                 £000's
Basic profit/(loss) for the period and
attributable earnings                                     6,764                  (959)
Goodwill amortisation                                     4,839                  4,279
     less tax on goodwill amortisation                    (498)                  (494)

Adjusted basic profit for the period and                 11,105                  2,826
attributable earnings

5. RECONCILIATION OF MOVEMENTS IN
SHAREHOLDERS' FUNDS
                                                         £000's                 £000's

At start of period                                       74,380                 78,929
Issue of shares in period                                   888                    235
Estimated movement in
value of shares to be issued                              2,400                      -
Goodwill charged to profit for the
period but previously written off to
reserves                                                    588                      -
Revaluation of fixed asset investment                     7,069                      -
(note 7)
Profit/(loss) for the period                              6,764                  (959)
Dividends                                               (6,843)                (3,825)

At end of period                                         85,246                 74,380



6. PROVISION FOR LIABILITIES AND CHARGES AND CONTINGENT ASSETS AND LIABILITIES

                                        Provision               Deferred              Total
                                              For               taxation
                                    split capital               (asset)/
                                            trust              provision
                                      liabilities
                                           £000's                 £000's             £000's

Balance at 27 September 2003                1,819                    787              2,606
Utilised in period                        (1,819)                (1,333)            (3,152)

Balance at 24 September 2004                    -                  (546)              (546)


Provision for split capital trust liabilities


In 2002 an exceptional provision of £2.5m was established for all costs in
relation to split capital trusts. This provision was reassessed at 26 September
2003 at £1.8m. During the period the provision has been utilised to meet costs
and claims. The Directors believe that, having carefully examined all claims
received to date, no further provision for split capital liabilities is
required.  If there prove to be further liabilities, the Directors believe that
these will be fully covered by insurance.

The Directors are currently in discussion with the Group's insurers in respect
of claims for costs already incurred and expensed regarding split capital
trusts.  An estimate of the potential favourable financial effect is not given
as the Directors consider that any such disclosure would seriously prejudice
their negotiations with insurers.

The setting up of a fund, under the auspices of the Financial Services
Authority, for those who have lost money in zero dividend preference shares, on
an ex gratia basis, is being closely considered by a number of fund managers and
brokers; the Directors believe that such a fund would be in the interest of
clients, the financial services industry and shareholders.

While confidential discussions continue, it would be seriously prejudicial to
the discussions for the Directors to quantify the potential contribution.  Any
ex gratia payment would be provided for when the decision to make payment is
agreed, quantified, and approved by the Board.  The Directors believe that any
such contribution would not have a substantial adverse effect on the Group's
capital adequacy margin, which would still be comfortably above the regulatory
requirement.


7. ACCOUNTING POLICIES - FIXED ASSET INVESTMENTS

The accounting policies used in arriving at the preliminary results are
consistent with those, which will be published, in the full financial
statements. There are no changes in accounting policies from those used in 2003,
save for the accounting policy for certain fixed asset investments which has
been revised as follows:

Investments in Group companies held as fixed assets are stated at cost less
provision for impairment. Holdings in external investments, which currently
comprise the Group's holding of ordinary shares in Euroclear plc, are held at
Directors' valuation.

In prior periods the Company's investment in ordinary shares in Euroclear plc
was held at cost. However, the accounting policy has been changed as the
Directors consider that the new accounting policy is more appropriate as the
resulting valuation (which is considerably in excess of cost) more appropriately
reflects the Group's investment in Euroclear plc.

The Group has a holding of 19,899 ordinary shares in Euroclear plc. This holding
represents 0.521% of Euroclear plc's share capital. The Directors, having taken
professional advice, valued the Group's holding at £7.5m. This valuation took
into account the Group's share of net assets, dividend yield and the price of
similar quoted companies discounted for marketability.

The effect of the change in accounting policy is to increase net assets at 24
September 2004 by £7,069,000. This change in accounting policy has no effect on
the net assets of the Group as at 26 September 2003 as the shares were not
valued in excess of cost at that date, nor on the profit and loss account of the
Group for either the current or prior period.


8. The financial information in this press release does not constitute statutory
accounts within the meaning of section 240 of the Companies Act 1985, but is
derived from these accounts. Statutory accounts for 2003 have been delivered to
the Register of Companies, and those for 2004 will be delivered following the
Company's Annual General Meeting. The Auditors have reported on those accounts;
their reports were unqualified and did not contain statements under section 237
(2) or (3) of the Companies Act 1985.


9. The Annual General meeting will be held at 12 noon on 22 February 2005 at
Skinners' Hall, No 8 Dowgate Hill, London EC4R 2SP.



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