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Brewin Dolphin Hldgs (BRW)

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Thursday 27 November, 2003

Brewin Dolphin Hldgs

Final Results

Brewin Dolphin Holdings PLC
27 November 2003

27 November 2003

                            The Brewin Dolphin Group
                              Preliminary Results

•  Total income £101 million (2002 : £105 million)

•  Discretionary funds were £4.9 billion at 26 September 2003 (2002:£4.2 
   billion) an increase of 17% against a FTSE Index rise of 6%.  Total advisory 
   and discretionary funds under management were £14.2 billion at 26 September 
   2003 (2002: £13.5 billion)

•  Profit before tax, goodwill amortisation and exceptional items £4.4 million  
   (2002 : £10.5 million)

•  Profit before tax but after goodwill amortisation and exceptional items 
   £75,000 (2002 : £6.4 million)

•  Diluted earnings per share before goodwill amortisation and exceptional items 
   1.4p (2002 : 3.8p). Adjusted basic earnings per share 1.5p (2002 : 4.0p). 
   Diluted earnings per share after goodwill amortisation and exceptional items 
   (0.5)p (2002 : 1.9p). Basic earnings per share (0.5)p (2002:2.0p)

•  Total dividend 2.0p (2002 : 3.5p) per share

Sir Fred Holliday said:-

'I am pleased to report that from the middle of the summer, confidence and
activity improved as governments, companies and individuals began to invest
again. This is reflected in our growth of funds under management, predominantly
in discretionary business.'

'With the recovery becoming more sure-footed, I have a cautious optimism for the
coming year and with it the success of your Company'

For further information

John Hall
Brewin Dolphin 020 7248 4400

Sarah Gestetner/Anthony Kennaway
Citigate Dewe Rogerson 020 7638 9571

Chairman's Statement

It is with great pleasure that I present the first Annual Report to shareholders
since my appointment as Chairman. Last year's AGM coincided with what we can now
see was a low point of the world's stockmarkets. Just before hostilities began
in Iraq the future looked bleak and turnover on the Stock Exchange dwindled.

Against this background your Board took action to reduce the cost base whilst
maintaining the standards of service throughout the organisation. This placed us
in a good position to benefit from the economic upturn.

Following those events I am pleased to report that from the middle of the summer
confidence and activity improved as governments, companies and individuals began
to invest again. This is reflected in our growth of funds under management,
predominantly in discretionary business.

Our institutional and corporate business has performed creditably in difficult
markets and their contribution is recognised. Our core business remains
portfolio management, which we have developed this year and in which we continue
to invest to provide a broader range of financial services for our clients.

On behalf of shareholders I would like to thank all members of staff throughout
the whole organisation, for their hard work during the past year. It is our
people on whom we depend and we continue to develop both our staff's expertise
and the overall level of resources so that we can broaden the provision of
specialist services that each client requires. I welcome the investment managers
that have joined us during the year, a trend that is continuing in the new
financial year.

It is our staff and these initiatives that have served to strengthen our
position as the leading independent private client investment manager.

During the year we have contributed to shareholder democracy, not only in debate
but by taking action in enabling our clients who held specific stock in our
Nominee accounts to vote electronically at AGMs. This was applauded in the
financial press and we will continue to develop the system further.

I thank Sir David Rowe-Ham for his 10 years' hard work as our Chairman. Vikram
Lall steps down as an Executive Director and we thank him for his significant
contribution to the Board over the last 11 years; we are  pleased that his
knowledge and expertise will not be lost since he has agreed to become a
Non-Executive Director. I welcome to the Board Jock Worsley, who built the
highly successful Financial Training Company and we will be benefiting not only
from his sound business acumen but also his background of enabling people to
make the most of their potential.

With these changes to the Board and the recovery becoming more sure-footed, I
have a cautious optimism for the coming year and with it the success of your

Sir Fred Holliday
26 November 2003

Chief Executive's Report

The year under review to September 2003 proved a turbulent one for stock markets
world-wide and was an extension of the previous difficult periods for investors
and their advisers.    We as a house became more confident about the US economy
towards the end of 2002 and were forecasting a recovery in markets, which began
to take shape in the Spring, following the second Iraqi war.

Our first half, normally the most active period in the year, was disappointing.
We continued to trade profitably across the business however, even though
profits before tax, goodwill amortisation and exceptional items had shrunk to
£1.8 million against £7 million for the same six month period the year before.
I am glad to be able to report that the second half and particularly the final
quarter, normally our quietest period, has seen a considerable improvement and
this has carried on into our new financial year.

In the year to 26th September 2003 our total income amounted to £101 million
(2002 £105 million), profit before tax, goodwill amortisation and exceptional
items was £4.4 million against £10.5 million, whilst fully diluted earnings per
share, before goodwill amortisation and relevant taxation, were 1.4p at 26
September 2003 (2002 3.8p).

Pre tax profits after goodwill amortisation were £75,000 against £6.3m in 2002,
whilst fully diluted basic earnings per share were (0.5)p against 1.9p in 2002.

The first interim dividend of 1p per share was paid in April and a second
interim payment of a further 1p was made in October this year, making a total of
2p per share against 3.5p in the previous year. As before we propose to
recommend a first interim dividend to shareholders at the AGM for 2004, payable
in April.

We now have 418 principal client executives supported by 158 assistants
operating from 32 branches.   Overall however there were 1,142 employees in the
Group at the end of the financial year compared with 1,326 a year earlier.

In 2002 a provision of £2.5 million was established for all costs relating to
split capital trusts.   This provision has been reassessed and stands at £1.8
million.    We have presented a claim to insurers of £739,000; if the remaining
provision is utilised the Directors believe that it is recoverable under the
Group's insurance cover but prudently no account has been taken of this.

Our total income during the year was made up: -

                                                     2003         2002
                                                       £m           £m

Discretionary Portfolio Management                   42.6         41.3
Advisory Portfolio Management                        44.4         47.5
Corporate Finance and Institutional Broking           9.2         10.6
Stocktrade                                            4.8          6.0

Total                                               101.0        105.4

Portfolio Management

Throughout the difficult period in markets we continued to attract clients to
our full discretionary managed service. In our view, this is much the most
efficient method of looking after our clients' interests in today's fast moving
markets. Within the parameters agreed with each individual client, our
Investment Managers have the authority to act without having to contact the
client and management is based on annual fees.

This year discretionary funds under management have risen to £4.9 billion from
£4.2 billion a year earlier, an increase of 17%.   To put this in perspective
the FTSE Index rose 6% year on year and was, of course, showing a loss for much
of the period.

Funds under advisory management stood at £9.3 billion at the year end giving a
total of £14.2 billion.

In the summer we stepped up our intermediary marketing efforts with the launch
of a fund management supermarket service for solicitors, IFAs and other
professional advisers.  The new service gives advisers access to all their
clients' portfolios on line, the ability to track any fee sharing and to receive
market information and price feeds.

During the year teams of high quality investment managers and their clients have
joined us in London, Glasgow and Edinburgh.   All have settled in well and are
contributing strongly to the group performance.
Stockbroking and Execution Only

During the year Stocktrade, our execution only broker, was incorporated into the
Group combining its settlement operations with that of the main business.
Stocktrade remains a separate brand carrying out execution only transactions
and, as such, it saw a notable increase in turnover in our last quarter.   It
has continued to expand its activities and it now provides dealing services for
some 70 companies.   Last year we proudly claimed that 15 of these were FTSE 100
companies, this figure has increased to 30.   In addition we continue to develop
our on-line trading platform which wins plaudits from private clients and
intermediaries alike.

Corporate Finance and Institutional Broking

The performance of the group's corporate and institutional broking operations
proved to be remarkably resilient against a somewhat hostile market background.
The small and mid cap areas of the market, where our activities are mainly
concentrated, were relatively dull during the earlier part of the year.
However, the final quarter saw a notable improvement in conditions.   This was
reflected in a resurgence of our new issue activity as well as an increase in
commissions from share trading.  Thus, while the result for the year fell short
of last year, we were nonetheless able to enjoy a satisfactory return from this
area of our operations.  We currently act for 149 corporate clients of which 83
are Listed, 51 are quoted on AIM, 3 are on OFEX and 12 are unquoted.

Settlement and Operations

Whilst London remains our Head Office, the bulk of our settlement activities
have now been transferred to Edinburgh and custodial activities for the whole
Group including PEPs and ISAs have been transferred to Newcastle.   These moves
and associated changes have led to a reduction in our cost base of £6 million
year on year.   The cost associated with this change amounted to £2.8 million,
which has been taken to the Profit & Loss Account.  The full benefit of these
adjustments will be seen in the current year.

It is greatly to the credit of our management team that these wide-ranging
changes were put in place with no disruption to the business.   Furthermore two
new mainframe computers were acquired which considerably increases our I.T.
capacity and incidentally reduces our leasing costs.  There was an increase in
depreciation and other one-off payments totalling £2.4 million that we have also
taken in this year's figures.

From all the above it will be gathered that the trading year ended on a much
brighter note than it started.   Our predictions that there would be an
improvement in corporate profitability and that better markets would reflect
this did eventually come to pass. Investors' confidence has been gradually
returning and the investment climate is now considerably better than it was
twelve months ago. We have improved our position, not only in terms of our cost
base, but also our I.T. infrastructure and through the teams that have joined

We have received great support and loyalty from our clients in times when
inevitably portfolio values were falling and this gives us confidence for the

John Hall
26 November 2003



                                                 Note               2003                       2002
                                                                52 Weeks                   52 Weeks
                                                              Continuing                 Continuing
                                                              operations                 operations
                                                                   Total                      Total
                                                                  £000's                     £000's

Turnover                                                          93,533                     99,056
Other operating income                                             7,512                      6,439
 TOTAL INCOME                                      1             101,045                    105,495

Staff costs                                                     (55,795)                   (53,029)
Other operating costs
  operating costs                                               (42,520)                   (46,292)
  goodwill amortisation                                          (4,279)                    (3,864)
                                                                (46,799)                   (50,156)
                                                               (102,594)                  (103,185)
OPERATING (LOSS)/PROFIT                                          (1,549)                      2,310
Profit on disposal of fixed asset                                      -                      2,206
Other interest receivable and similar income                       1,694                      1,999
Interest payable and similar charges                                (70)                      (124)
Profit on ordinary activities before
goodwill amortisation and exceptional items         1              4,354                     10,549
Goodwill amortisation                                            (4,279)                    (3,864)
Exceptional items                                                                             (294)

TAXATION                                           1                  75                      6,391

 Tax on profit on ordinary activities              2             (1,034)                    (2,626)

TAXATION                                                           (959)                      3,765

Equity dividends                                   3             (3,825)                    (6,544)
                                                                 (4,784)                    (2,779)

       Basic                                       4               (0.5) p                      2.0p
       Diluted                                     4               (0.5) p                      1.9p
Excluding goodwill amortisation and exceptional
       Basic                                       4                 1.5 p                     4.0p
       Diluted                                     4                 1.4 p                     3.8p

The  Group has no recognised gains or losses other than those included in the
consolidated  profit and loss account. Therefore no consolidated statement of
total recognised gains and losses has been prepared.


                                                         Note       2003                       2002
                                                                  £000's                     £000's
                 Intangible assets                                40,202                     43,323
                 Tangible assets                                   9,050                     14,017
                 Investments                                         431                        431

                                                                  49,683                     57,771

                 Investments                                         374                        494
                 Debtors                                         152,377                    159,169
                 Cash at bank and in hand                         26,526                     33,162

                                                                 179,277                    192,825

         CREDITORS: amounts falling due within one year        (151,974)                  (167,682)

         NET CURRENT ASSETS                                       27,303                     25,143

         TOTAL ASSETS LESS CURRENT LIABILITIES                    76,986                     82,914

       PROVISION FOR LIABILITIES AND CHARGES                     (2,606)                    (3,985)

         NET ASSETS                                               74,380                     78,929

                 Called up share capital                           1,915                      1,910
                 Shares to be issued                               3,000                      3,000
                 including premium
                 Share  premium account                           78,149                     77,965
                 Merger reserve                                    2,013                      1,967
                 Profit and loss account                        (10,697)                    (5,913)

         EQUITY SHAREHOLDERS' FUNDS                      5        74,380                     78,929



                                                                 2003                         2002
                                                             52 weeks                     52 weeks
                                                               £000's                       £000's

Net cash inflow from operating activities (see below)           1,951                       19,929
Return on investments and servicing of                          1,624                        1,875
Taxation                                                      (2,425)                      (6,657)
Capital expenditure                                           (1,802)                      (5,791)
Purchase of fixed asset  investments                                -                        (161)
Acquisitions                                                  (1,111)                     (11,718)
Equity dividends paid                                         (4,772)                      (6,440)
 OUTFLOW  BEFORE FINANCING                                    (6,535)                      (8,963)
Financing (see below)                                             188                          242
DECREASE IN CASH  IN THE PERIOD                               (6,347)                      (8,721)


         Operating (loss)/profit                              (1,549)                        2,310
         Depreciation and amortisation                         11,048                        9,635
         Sale of fixed assets  investments                          -                        8,290
         Decrease in current asset                                120                          155
         Decrease in debtors                                    6,792                        5,866
         Decrease in creditors                               (13,779)                      (8,827)
         (Decrease)/increase in provisions                      (681)                        2,500

Net  cash  inflow from operating  activities                    1,951                       19,929
     Issue of shares for cash                                     188                          242
                                                                  188                          242

Decrease in cash in the period                                (6,347)                      (8,721)
Net funds at start of period                                   32,021                       40,742
Net funds at end of period                                     25,674                       32,021

                                                                 2003         Cash flow       2002
                                                               £000's            £000's     £000's

Firm's cash                                                    14,763           (5,854)     20,617
Firm's overdraft                                                (852)               289    (1,141)
Firm's net cash                                                13,911           (5,565)     19,476
Client settlement cash                                         11,763             (782)     12,545
Net cash                                                       25,674           (6,347)     32,021


1. TOTAL INCOME  AND PROFIT BEFORE TAX                              2003                        2002
                                                                52 weeks                    52 weeks

                                                    Total  Profit before        Total  Profit before
                                                   income       taxation       income       taxation
                                                   £000's         £000's       £000's         £000's

Discretionary portfolio management                 42,636            543       41,280          4,419
Advisory portfolio management                      44,377            566       47,557          2,884
Stocktrade                                          4,819           (40)        6,055          (953)
Corporate finance and institutional                 9,213          1,661       10,603          2,324
OPERATING PROFIT before tax,  goodwill
amortisation and exceptional items                                 2,730                       8,674
Interest                                                           1,624                       1,875
PROFIT BEFORE TAX, goodwill amortisation and                       4,354                      10,549
exceptional items
Exceptional items                                                      -                       (294)
Goodwill amortisation                                            (4,279)                     (3,864)
                                                  101,045             75      105,495          6,391

                                                                    2003                        2002
                                                                52 weeks                    52 weeks
                                                                  £000's                      £000's
United Kingdom corporation tax based on the
taxable profit for the period at 30% (2002 30%)
                  Current                                          2,184                       4,648
                  Prior year                                       (534)                     (2,063)
                  Deferred -  UK only                            (1,053)                     (1,677)
                  Prior year deferred - UK only                      355                       1,677
               Overseas tax
                  Current                                             73                          41
                  Prior year                                           9
                                                                   1,034                       2,626
The current tax charge for the period exceeds
30% (2002 30%) for the following reasons:-

Tax on ordinary activities at the standard                            23                       1,917
rate 30% (2002 30%)
Goodwill amortisation - disallowed proportion                        790                         814
Leasehold property depreciation                                      140                          96
Disallowable expenses and other timing
differences                                                          251                         185

Current tax charge for the period                                  1,204                       3,012
Prior period tax                                                   (170)                       (386)
                                                                   1,034                       2,626

                                                                    2003                        2002
3. DIVIDENDS                                                      £000's                      £000's

First interim dividend paid on 7th April 2003 of  1p per           1,912                       3,684
share  (2002 2p)
Second interim dividend  paid on 1st October 2003 of 1p
per share  (2002 1.5p)                                             1,913                       2,860

                                                                   3,825                       6,544

                                                                      No                          No
                                                                   000's                       000's
Weighted average number of shares in issue in the period         191,081                     187,500
Weighted average number of options outstanding for the             1,177                         557
Estimated weighted average number of shares earned under
   deferred consideration arrangements                             5,184                       7,709

Diluted weighted average number of shares in issue in the        197,442                     195,766

                                                                  £000's                      £000's
Basic (loss)/ profit for the period and                            (959)                       3,765
attributable earnings
Goodwill amortisation                                              4,279                       3,864
     less tax on goodwill amortisation                             (494)                       (346)
exceptional items                                                      -                         294
     less tax on exceptional items                                                              (88)
Adjusted basic profit for the period and attributable              2,826                       7,489


At 28 September 2002                                              78,929                      97,556
Issue of shares  in period                                           235                     (3,218)
Estimated  movement in
value of shares to be issued                                           -                    (11,500)
prior period acquisitions                                              -                     (1,130)
(Loss)/profit for the period                                       (959)                       3,765
Dividends                                                        (3,825)                     (6,544)

At 26 September 2003                                              74,380                      78,929


The accounting policies used in arriving at the preliminary figures are
consistent with those, which will be published, in the full financial
statements. There are no changes in accounting policies from those used in 2002.

7. 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 2002 have been delivered to
the Register of Companies, and those for 2003 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.

8. The Annual General meeting will be held at 12 noon on 24 February 2004.

                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                                          

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