Information  X 
Enter a valid email address

Brewin Dolphin Hldgs (BRW)

  Print          Annual reports

Tuesday 30 November, 1999

Brewin Dolphin Hldgs

Final Results - Pre-tax Profit Up 57%

Brewin Dolphin Holdings PLC
30 November 1999




                   Brewin Dolphin Holdings PLC
  Preliminary Results for the 52 weeks ended 26 September 1999


Highlights

-    Pre-tax profit £17.5m -  up 57%*

-    Earnings per share 35.1p - up 29%*

-    Dividends in the year of 13.0p - up 30%

-    Funds under management approximately £14bn, of which £3.2bn
     is on a fully discretionary basis

-    Acquisition of private client team from Williams de Broe
     with £400m funds under management

* After proportionately adjusting for the 9 month period in 1998



'Brewin  Dolphin  has had an outstanding year, reflecting  strong
organic growth in all its activities, complemented by a full year
contribution from the acquisition of Wise Speke, which joined the
Group in June 1998.'

'The  current  year has got off to a good start.  I am  confident
that the Group is well positioned to make further progress and  I
look forward to the future with confidence.'

                                   Sir David Rowe-Ham, Chairman

Enquiries:

John Hall, Managing Director
Brewin Dolphin Holdings PLC             Tel: 0171 248 4400

Bob Gregory
Bell Pottinger Financial                Tel: 0171 353 9203

                                

                                
                   Brewin Dolphin Holdings PLC
                      Chairman's Statement

I am pleased to report that Brewin Dolphin has had an outstanding
year,  reflecting  strong organic growth in  all  its  activities
complemented by a full year contribution from the acquisition  of
Wise Speke, which joined the Group in June 1998.

These  results mark the fifth anniversary of the company becoming
publicly quoted on the London Stock Exchange and is therefore  an
appropriate moment to reflect on progress to date.

In  1994  we had a pre tax profit of £4.03m, whilst in  the  year
ended 26 September 1999 this had grown to £17.5m - an increase of
430%.   Earnings per share rose three times from 12.5p five years
ago  to  35.1p with total funds under management increasing  from
£5bn  to  £14bn,  of  which some £3.2bn  is  under  discretionary
management. None of this success would have been achieved without
the  enthusiasm and dedication of all my colleagues, and on  your
behalf I thank them most sincerely

We  are  one  of  the  largest private client fund  managers  and
stockbrokers in the United Kingdom, with well over 70,000 clients
operating  from  some 23 offices. Today we offer  our  clients  a
range  of services covering discretionary, advisory, on-line  and
execution only. There is an exciting future for dealing over  the
Internet  and  the service we offer through Stocktrade  has  been
especially  well  received.  However, demand for  our  investment
management  services also continues to be buoyant and we  believe
both  aspects of our business can continue to flourish  and  that
they  are not mutually exclusive.  Indeed, our experience to date
is  that Internet dealing appeals to a different client base from
our traditional business.

In  addition  to  this core activity we have built  up  a  strong
position  providing financial advice to the smaller  company.  We
act  as  broker or financial adviser to over 135 companies making
us the leading broker in this area.

The  past  five years have also seen an unparalleled  advance  in
computer systems and information technology.  All our offices are
linked  to  a central system and we have invested £6m  this  year
alone.  This whole technology area is vital to the firm's future,
and  our  investment programme is on-going.  Clients are entitled
to  receive  the  highest possible service from  their  financial
advisers and we are determined to provide it.
                                
Although  we have grown significantly in the past five years  the
Board  is constantly exploring further acquisition opportunities,
both  of  people and firms.  Since the year end, we are delighted
to  have  reached agreement with Williams de Broe Plc for  eleven
client  executives and support staff to join us.  They  currently
handle some £400m of funds under management, most of which is  on
a  discretionary basis.  Full details of this transaction will be
found in the Managing Director's Review.

The  current year has got off to a good start. Whilst the  market
is  expecting subdued 'Millennium' trading in December and  early
January I am confident that the Group is well positioned to  make
further   progress  and  I  look  forward  to  the  future   with
confidence.



Sir David Rowe-Ham

                                
                                
                                
                   MANAGING DIRECTOR'S REVIEW

This  has  proved to be another highly successful  year  for  the
company  with  progress on many fronts. The acquisition  of  Wise
Speke  in June of last year has proved a great success and  I  am
glad  to  report  that the integration of the business  has  been
completed.   Moreover, the economies of scale that  we  envisaged
have been more than achieved and within a shorter timescale.  The
figures we are now reporting contain, for the first time, a  full
twelve month contribution from the acquisition.

Total  income has risen to £87.6m, an increase of 32%  over  last
year's figure when adjusted to take account of   the  fact   that
1998 was a nine month period. Pre-tax profits at  £17.5m  show an
increase  of 57% over the last year's figure, similarly adjusted.
Earnings  per   share   in   fully diluted  form  are  35.1p,  an
increase of 29%.

During  the year we continued our practice of making two dividend
payments, in April and October and we raised the total payment by
30% to 13p against 10p in 1998.

We  have seen continued growth in the funds we manage on a  fully
discretionary basis which at the year end were valued  at  £3.2bn
compared  to £2.5bn twelve months previously.  Total funds  under
management  are  approximately £14bn. The Wise Speke  acquisition
brought  a  significant increase in advisory funds.   This  is  a
quality business both in terms of the service the clients receive
and  the  recurrent income to us. However, the  conversion  of  a
greater  proportion to discretionary management  clients  remains
the  priority,  because in today's fast moving markets  it  is  a
great  advantage  to be in a position to act for clients  without
delay.

Given  the  rapid technological advances taking place,  we  think
many of our clients will wish to take advantage of the speed  and
ease of communication such technology brings in its wake. As part
of   the   ongoing  development  of  our  award-winning  website,
www.brewindolphin.co.uk, we are developing the  ability  for  our
clients  to access their individual portfolio valuations, dealing
records, etc. as well as market prices, in a carefully controlled
and secure environment.  It is important that we keep abreast  of
developments in this swiftly changing environment, as the  London
Stock   Exchange  demutualises  and  possible  new  markets   are
developed,  to  ensure  that we obtain  the  best  execution  and
service for our clients.

The   management  of  individual  portfolios  remains  our   core
business.  However,  we  are  fully alert  to  the  opportunities
presented   by   the  new  technology  and  the  Internet.    The
announcement  of our figures on the 30th November coincides  with
the  anniversary  of  the introduction of  our  Internet  trading
service  through Stocktrade.  We were, the first broker to  offer
such  a  service and we continue to lead in this area  being  the
only  broker to offer next day settlement, as well as  real  time
prices.  Our  clients using this service which can  be  found  at
www.stocktrade.co.uk.  now have portfolios  lodged  with  Crestco
through  ourselves totalling over £400m. Stocktrade has continued
to  go  from  strength to strength not only  with  its   internet
trading  but  also  with  its Private Client  telephone  dealing,
Company    Schemes,   Corporate   PEPs   and   ISAs   and    Fund
Management/Agency service operation.  It continues to concentrate
on high quality service and immediacy of response.

Continuing  on  the  theme of technology, the  announcement  that
CREST is to link with the US Depository Trust Company next Spring
is   an  exciting  development  and  will  enable  us  to  settle
transactions in NASDAQ and S&P 500 securities economically.   The
difference this link will make to our cost of US trading will  be
dramatic and will bring down our commission on US transactions.

During  the year we have opened two new branches.  One  in  North
Wales,  based  in Llandudno and one in Inverness.  We  have  also
expanded  a  number  of our other branches, particularly  Dundee,
Manchester,  Birmingham, Guernsey and Jersey. These branches  are
supported by our UK research resource delivered to each office by
the  Intranet  and  this service is currently being  expanded  to
cover  a  selection  of  the  larger  European  companies.   Most
notably,  since  the year end, we have agreed the acquisition  of
the business of eleven client executives and supporting staff who
will  be joining us in the London office from Williams de Broe  a
member  of  the ING Group. They will bring with them funds  under
management  of  some £400m of which the great majority  is  on  a
fully  discretionary  fee paying basis,  and  they  generated  an
income  of  some  £3.2m  last year.  The  initial  cost  will  be
approximately £12m, payable to ING and the team which is intended
to be  funded largely by a Placing of new ordinary shares raising
up  to £11.4m.  There are also arrangements whereby the team  can
earn  a  maximum  of  a further £3m BDH shares  if  they  achieve
certain  goals.  The business will be earnings enhancing  in  the
first   year.    We   continue  to  look  for  other   investment
opportunities as the Retail Market continues to consolidate.

The  replacement  of  PEPs  by  ISA's  has  seen  a  slow  start.
Nonetheless, we have a total of £45m in ISA funds and there is no
doubt  that in the first year, when clients can invest  £7000  in
this  medium, it is an attractive proposition.  It is  a  concern
that  clients who have been persuaded by their bank  or  building
society  to put £1000 in a cash mini-ISA do not always appreciate
that  this  prevents  them from taking out  a  full  ISA  through
ourselves  even  though they have been accustomed  to  making  an
annual  PEP  contribution. We are continuing to  receive  a  good
number  of  PEP  transfers and our PEP  funds  are  now  over  £1
billion.

Our corporate finance and institutional division have had another
successful year, despite market sentiment against small companies
which  form  the bulk of our client base.  We were,  and  remain,
particularly active in the split capital investment trust sector,
winning new mandates with innovative ideas.  We continue to build
our  company client base across the UK offering a wide  range  of
services  and  advice  on  amalgamations,  disposals  and  future
funding, and now act as corporate broker or financial adviser  to
over  135 companies, from whom we receive an increasing  flow  of
recurring income.

Whilst  the integration of Wise Speke has been the main focus  of
the  past year we have also introduced further considerable  I.T.
enhancements.  We invested no less than £6m on our  systems  last
year  and  expect to have a total spend of approaching  the  same
figure  in  the current period.  By then we will have  introduced
new  systems  to  support our executives in  providing  the  best
possible service to our clients.

Against the background of so much change this year, it is a great
credit  to  all  our staff that the momentum has been  more  than
maintained.





John Hall


                   Brewin Dolphin Holdings PLC
              Consolidated Profit and Loss Account
  For the 52 Weeks Ended 26 September 1999 (1998 38 weeks to 27
                           September)

                                Note           1999            1998
                                           52 weeks        38 weeks
                                                                   
                                         Continuing      Continuing
                                         Operations      Operations
                                              £'000           £'000
Turnover                                     85,618          48,762
Other operating income                        1,985           1,085
                                        -----------     -----------
TOTAL INCOME                       1         87,603          49,847
                                        -----------     -----------
Staff costs                                 (39,483)        (22,690)
Other operating costs                       (33,711)        (20,493)
                                        -----------     -----------
                                            (73,194)        (43,183)
                                        -----------     -----------
OPERATING PROFIT                             14,409           6,664
Profit on disposal of fixed                                        
 assets                            2            536               -
Other interest receivable and                                      
 similar income                               2,702           1,842
Interest payable and similar                                       
 charges                                       (131)           (155)
                                        -----------     -----------
PROFIT ON ORDINARY ACTIVITIES                                      
 BEFORE TAXATION                   1         17,516           8,351
                                                                   
Tax on profit on ordinary                                          
 activities                                  (5,707)         (2,784)
                                        -----------     -----------
PROFIT ON ORDINARY ACTIVITIES                                      
 AFTER TAXATION                              11,809           5,567
                                                                   
Dividends                          3         (4,093)         (1,090)
                                        -----------     -----------
RETAINED PROFIT FOR THE PERIOD                7,716           4,477
                                        ===========     ===========
EARNINGS PER SHARE                                                 
Basic                              4          37.6p           21.7p
Diluted                            4          35.9p           20.4p
Excluding goodwill                                                 
 amortisation and profit
 on disposal of fixed asset
Basic                              4          36.8p           21.7p
Diluted                            4          35.1p           20.4p
                                
                                
                   Brewin Dolphin Holdings PLC
                   Consolidated Balance Sheet
                     As At 26 September 1999

                                    26 September   27 September
                                            1999           1998
                                           £'000          £'000
                                                               
FIXED ASSETS                                                   
 Intangible assets                           409              -
 Tangible assets                           8,764          5,093
 Investments                                 240            240
                                    ------------   ------------
                                           9,413          5,333
                                    ============   ============
CURRENT ASSETS                                                 
 Investments                                 403            345
 Debtors                                 254,745        195,257
 Cash at bank and in hand                 40,888         36,720
                                     -----------    -----------
                                         296,036        232,322
                                     -----------    -----------
CREDITORS: amounts falling due                                 
 within one year                        (276,775)      (216,248)
                                     -----------    -----------
NET CURRENT ASSETS                        19,261         16,074
                                     -----------    -----------
TOTAL ASSETS LESS CURRENT                                      
 LIABILITIES                              28,674         21,407
                                                               
CREDITORS: amounts falling due                                 
 after more than one year                 (1,439)        (1,788)
                                                               
                                     -----------    -----------
                                          27,235         19,619
                                     ===========    ===========
CAPITAL AND RESERVES                                           
 Called up share capital                   1,573          1,559
 Shares to be issued including                                 
 premium                                  11,321         10,179
 Share premium account                    33,158         33,085
 Profit and loss account                 (18,817)       (25,204)
                                      ----------    -----------
Shareholders' funds                       27,235         19,619
                                      ==========    ===========
                                                               

                   Brewin Dolphin Holdings PLC
                Consolidated Cash Flow Statement
  For the 52 Weeks Ended 26 September 1999 (1998 38 Weeks to 27
                           September)

                                                1999          1998
                                            52 weeks      38 weeks
                                               £'000         £'000
Cash flow from operating activities           19,177        10,619
 Return on investments and servicing                              
 of finance                                    2,571         1,687
 Taxation                                     (6,717)         (551)
 Capital expenditure                          (6,520)       (2,017)
 Acquisitions and disposals net                   69      (26,899)
 Equity dividends paid                        (3,610)       (1,501)
                                         -----------   -----------
CASH INFLOW/(OUTFLOW) BEFORE                                      
 MANAGEMENT OF LIQUID RESOURCES AND                               
 FINANCING                                     4,970       (18,662)
Financing                                       (443)        26,379
                                         -----------   -----------
INCREASE IN CASH IN THE PERIOD                 4,527         7,717
                                         ===========   ===========
RECONCILIATION OF OPERATING PROFIT TO                             
 OPERATING CASH FLOW
 Operating profit                             14,409         6,664
 Depreciation                                  2,491         1,312
 Loss on sale of fixed assets and                                 
 lease finance                                   359            26
 (Increase)/Decrease in investments              (58)            74
 Increase in debtors                         (60,192)      (76,251)
 Increase in creditors                        58,701        75,035
 Increase in other creditors                   3,467         3,759
                                         -----------   -----------
Net cash inflow from operating                                    
 activities                                   19,177        10,619
                                         ===========   ===========
RECONCILIATION OF NET CASH FLOW TO                                
 MOVEMENT IN NET FUNDS
Increase in cash in the period                 4,527         7,717
Cash movement from change in lease                                
 financing                                       529           160
                                         -----------   -----------
Change in net funds resulting from                                
 cash flows                                    5,056         7,877
Cash net of finance leases acquired                               
 with Wise Speke Group PLC                         -         8,784
Net funds at start of year                    35,327        18,666
                                         -----------   -----------
Net funds at end of year                      40,383        35,327
                                         ===========   ===========

                   Brewin Dolphin Holdings PLC
                      Notes to the Accounts

1.   TOTAL INCOME AND PROFIT BEFORE TAX

                             1999 Year             1998 Nine Months   
                           Total      Profit       Total       Profit
                                      before                   before
                          income    taxation      income     taxation
                           £'000       £'000       £'000        £'000
                                                                     
Discretionary                                                        
portfolio management      31,761       6,515      17,501        3,166
Advisory portfolio                                                   
 management and                                                      
 other                    48,769       8,567      26,455        3,574
Corporate finance          7,073       1,898       5,891        1,611
                                    --------                 --------
                                      16,980                    8,351
Profit on disposal                                                   
 of fixed assets                         536                        -
                        --------    --------    --------     --------
                          87,603      17,516      49,847        8,351
                        ========    ========    ========     ========

2.   PROFIT ON DISPOSAL OF FIXED ASSETS
                                                1999           1998
                                               £'000          £'000
                                                Year    Nine Months
Profit on sale of management                                       
 contracts of Pilgrim Unit Trust                                   
 Managers Limited net of                                           
 goodwill write off of £333,000                  536              -
                                           =========      =========

3.   DIVIDENDS
First interim dividend of 8p                                       
 paid 6 April 1999                             2,520              -
Second dividend of 5p per share                                    
 paid 1 October 1998 (1998: 3.5p)              1,573          1,090
                                            --------       --------
                                               4,093          1,090
                                            ========       ========

4.   EARNINGS PER SHARE

                                                  1999         1998
Earnings per share is calculated in                No.          No.
 accordance with FRS 14 based on the
 following figure
Basic                                                              
Weighted average number of shares in                               
 issue in the period                        31,394,588   25,698,902
Diluted                                                            
Weighed average number of options                                  
 outstanding for the period                    601,104    1,340,330
Estimated weighted average number of                               
 shares earned under deferred
 consideration arrangements
    Wise Speke                                 661,053            -
    Other acquisitions                         273,955      275,575
                                           -----------  -----------
Diluted weighted average number of                                 
 shares in issue in the period              32,930,700   27,314,807
                                           ===========   ==========
                                                       
                                                                   
                                                 £'000        £'000
Basic profit for the period and                                    
 attributable earnings                          11,809        5,567
Goodwill amortisation                                8            -
Profit on sale of fixed assets                    (536)           -
  Taxation thereon                                 269            -
                                              --------     --------
Adjusted Basic profit for the period                               
 and attributable earnings                      11,550        5,637
                                              ========     ========

5.   RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS.

                                                 £'000
At 28 September 1998                            19,619
Issue of shares                                     87
Estimated movement in value of shares             (355)
 to be issued
Prior year goodwill                               (165)
Disposal of goodwill                               333
Profit for the period                           11,809
Dividends                                      (4,093)
                                            ----------
At 26 September 1999                            27,235
                                            ----------


6.   The  financial information set out above does not constitute
     the  company's  statutory accounts for  the  year  ended  26
     September  1999 or the nine month period ended 27  September
     1998,   but  is  derived  from  those  accounts.   Statutory
     accounts  for  1998 have been delivered to the Registrar  of
     Companies,  and  those for 1999 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)
     or the Companies Act 1985.


7.   The  Annual  General Meeting will be held at 12 noon  on  24
     February 2000.



                                                                                                                                                                                                                                                         

a d v e r t i s e m e n t