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Brewin Dolphin Hldgs (BRW)

  Print          Annual reports

Thursday 27 November, 2008

Brewin Dolphin Hldgs

Final Results

RNS Number : 0391J
Brewin Dolphin Holdings PLC
27 November 2008
 



27 November 2008


Brewin Dolphin Holdings PLC


Group Preliminary Results


For the period ended 28 September 2008

Highlights


Total income £206 million (2007: £209 million).


Discretionary funds £10.2 billion at 28 September 2008 (2007: £10.7 billion), a fall of 4.7% which compares to falls of 21.3% and 14.6% of the FTSE 100 Share Index and FTSE APCIMS Private Investors Series Balanced Portfolio Index respectively over the same period.


Profit before tax £36.2 million (2007: £41.7 million).


Earnings per share:



Diluted earnings per share 11.7p (2007: 13.8p).



Basic earnings per share 12.2p (2007: 14.5p).


The total dividend for the period is 7.1p# per ordinary share 

(2007: 6.875p##) a 3.3% increase. 


Proposed final dividend 3.55p per share up 1.4% against 3.5p per share in 2007.


# (paid September 2008 and payable April 2009), ## (paid October 2007 and April 2008)


Declaration of Final Dividend

The Board is pleased to announce that we are proposing a final dividend of 3.55p, to be approved at the 2009 AGM and payable on 6 April 2009 to shareholders on the register at close of business on 13 March 2009, with an ex-dividend date of 11 March 2009.


Jamie Matheson, Executive Chairman said:

 'In a year characterised by difficult and volatile trading conditions, your Company achieved a relatively resilient performance reflecting the fundamental strengths and scale of the business.


Overall, as the UK's largest independent private client investment manager focused on long term equity investment, we have a good platform to continue to develop despite the uncertain economic environment.'


  For further information, please contact:


Brewin Dolphin Holdings PLC

Tel: 020 7248 4400

Jamie Matheson, Executive Chairman




Hudson Sandler


Andrew Hayes / Wendy Baker

Tel: 020 7796 4133


Executive Chairman's Statement


In a year characterised by difficult and volatile trading conditions, your Company achieved a relatively resilient performance reflecting the fundamental strengths and scale of the business.


Pre-tax profit for the period to 28 September 2008 was £36 million, some 13% down on last year, against a fall in the FTSE 100 index of 21%. This disguises areas of some material progress, particularly within our mainstream Investment Management business.  


As in previous years we have benefited from the arrival of new investment managers and financial planners who have joined the Company. We expect this to continue. During the last year we have opened new offices in Chester and Nottingham and have expanded and relocated our offices in BirminghamYork, Jersey, Dundee, Inverness, Lymington and Newcastle. New teams have joined us in Belfast, Cheltenham, Exeter, Leeds and Taunton and ten new teams have arrived in London during the year.


Overall, as the UK's largest independent private client investment manager focused on long term equity investment, we have a good platform to continue to develop despite the uncertain economic environment.


Investment Management 

Investment Management is the largest part of your Group's activities and it has performed well in somewhat adverse market circumstances, increasing both income and profit. Total Funds Under Management have declined from £21.6 billion to £18.7 billion over the year, but most importantly the decline in the discretionary element from £10.7 billion to £10.2 billion is less than 5%, while the decrease in advisory funds has been 22% from £10.9 billion to £8.5 billion more in line with the market. The trend towards our full discretionary management service from advisory continues and has accelerated.


Investment Banking

While last year saw Investment Banking enjoy a record breaking performance, this year has, as highlighted at the half year, been in stark contrast, with income dropping by more than half and operating profit by some 93%.  Whilst at first glance this may appear dramatic, the Division still remained profitable and continues to perform favourably in comparison to many of its peer group.

 

Regulation

As ever, regulation features prominently in the day-to-day workings of your Group and it remains at the forefront of Board Policy to see that the Group meets all the standards and requirements of modern day regulation. Building on the work we did for MiFID last year, this year we have worked hard to ensure that your firm meets the six outcomes of the FSA's Treating Customers Fairly (TCF) project. It is integral to your Group's ethos that we treat our clients fairly.


Re-Branding

As part of the re-branding exercise which was carried out in the Spring of 2008, there is a different appearance to this year's Annual Report and Accounts. We now operate under the single name of Brewin Dolphin in EnglandWalesNorthern Ireland and the Channel Islands and it is planned that we will also do so in Scotland from the Spring of 2009. We have adopted a new logo and style which we believe is not only fresh and up-to-date, but as importantly, reflects our culture and heritage.


Strategy 

Brewin Dolphin remains committed to pursuing its objectives of achieving long term growth and return for shareholders through the provision of a high quality service to all our clients. Pursuit of these objectives will safeguard the interests of all our stakeholders.


Dividend

The Board is pleased to announce that we are proposing a final dividend of 3.55p, to be approved at the 2009 AGM and payable on 6 April 2009. 


The Board

As reported last year, John Hall and Vikram Lall retired at the last Annual General Meeting. Both Simon Miller and Robin Bayford will be standing for re-election at the AGM and I commend them to you. 


Conclusion

Once again the results in the year under review have been achieved thanks to the hard work of all the Brewin Dolphin people as well as the continued support of our clients, for which we are extremely grateful.  


I believe that your Group has performed well during this period but we cannot consider ourselves immune from stock market conditions and it is likely that this will be reflected in our results for the year ahead. Clearly during these more turbulent times it is as important as ever to keep a grip on cost control and this we are actively doing.


There are many lessons to be learned from the turmoil of recent months. In particular, there is now a wide recognition that debt in whatever sphere must be kept in proportion, which clearly emphasises the importance of equity. We are very fortunate to serve a client base that has a good understanding of stock markets and practices and true long term investments. I believe firmly in the merits and soundness of our business model and that this will help the Company's prospects.  


Jamie Matheson

26 November 2008

  

Business Review 


Investment Management Report

By D W McCorkell - Executive Director - Head of Investment Management


It is a great pleasure to report a record year for the Investment Management Division in what has been an unprecedented year for global stock markets.


Investment Management operating profits rose to £29.6 million from £27.7 million, an increase of 7% over the previous period on turnover of £193.7 million, an increase of 8% over the 2007 figure of £179.7 million, a creditable performance considering the market downturn in the second half.



Indices and Value of Funds under Management


 At 28 September 2008 

 At 30 September 2007 

 % Change 

Indices




FTSE APCIMS Private Investor Series Balanced Portfolio

2,586

3,029

-14.6%

FTSE 100

5,089

6,467

-21.3%





Funds





£billion

£billion


Discretionary funds under management

10.2

10.7

-4.7%

Advisory funds under management

8.5

10.9

-22.0%

Total managed funds

18.7

21.6

-13.4%



Total funds under Discretionary Management at the year end were £10.2 billion against £10.7 billion, a fall of 4.7% which compares to falls of 21.3% and 14.6% of the FTSE 100 Share Index and FTSE APCIMS Private Investors Series Balanced Portfolio Index respectively. Funds under Advisory Management were £8.5 billion, a fall of 22%, giving us total funds under management of £18.7 billion, a fall of 13.4% overall. These figures include £1.2 billion of new funds brought in by our new teams.


Financial Performance


Total Income

Operating Profit

Total Income

Operating Profit


2008

2008

2007

2007


£m

£m

£m

£m

Discretionary Portfolio Management

123.0

18.8

110.4

15.2

Advisory Portfolio Management

70.7

10.8

69.3

12.6


193.7

29.6

179.7

27.8


It is pleasing to report that fee, interest and other recurring income has increased by 23% in the year, with commission income falling by 6%. Recurring income is now 55% (2007: 49%) of the total income. Significantly this improvement in the quality of our income is not restricted to the discretionary side of the business, advisory fees and other recurring income has increased by 25% to £22 million, 31% of advisory revenue.


The business

During the period further teams of good quality fund managers have continued to join the Group, along with their clients. In total, 21 new teams have arrived during the period. The largest team consisted of six Divisional Directors and 18 staff, who joined us in Nottingham where we opened a new office. The smallest team of one Divisional Director and one assistant arrived in Guernsey in September. We look forward to all these teams making a positive contribution to our results next year.


We now have a total of 660 client executives and investment managers, a net increase of 44 over the period. 


Financial Planning has continued to grow with the number of qualified Financial Planners increasing to 63 across the Group. Financial Planning income has increased by 16.5% during the period. It is a strategic objective to provide qualified financial and tax planning advice in or near to all our branches and I am pleased to report that recruitment this period has brought us closer to that goal and to providing a complete wealth management service for all our clients. This strategy has delivered a net increase in pension funds managed around the Group to over £2 billion (£1.9 billion in 2007).


During the period, the roll out of the new Investment Management system, eXimius, was successfully completed. It provides superior investment management tools, individual risk profiling of clients' portfolios and enhanced performance measurements. The next phase of this development will shortly deliver an improved on-line reporting system for our clients.


Stocktrade provides specialist execution-only services to 30 companies in the FTSE 100, a further 130 listed companies, four Building Societies and some 150 Investment Managers and IFAs. Stocktrade has also built up a number of partnerships within the SIPP administration industry. These services, which include both 'Dual Branding' and 'White Labelling' for agents, have grown in popularity as investors have sought alternatives to traditional pension plans and we believe they are set to dominate the personal pension market for some time to come.


We have enhanced our research department during the period. The team is entirely dedicated to servicing the needs of our clients through focused research into UK and International equities, fixed interest securities, collective investments and structured products. The department analyses and monitors the most appropriate investment vehicles or securities, which our investment managers can assess for their clients' individual needs. Our analysts do not manage client monies and are fully focused on research for the benefit of the Group as a whole.


This year has seen the Financial Services Authority (FSA) introduce its Treating Customers Fairly (TCF) initiative. Whilst we believe we always treat our clients fairly, we now have improved processes in place to demonstrate that we do so and to provide more detailed management information which we will use to improve the efficiency of our business.


I must pay tribute to all our investment managers across the Group who have looked after their clients during such testing times. I must also thank our support staff without whom we would not be able to look after our clients' needs. Existing clients have told us in recent surveys that being able to talk to someone they know and trust is their most important criterion and new clients are joining us having lost confidence in managing their own investments. It is for these reasons that we believe our business model is the right one for the times ahead. We are also fortunate that in principle we are a long only, long term investment house, committed to providing a bespoke and personal service for our clients and to championing the interests of all private investors wherever we can. 

  

Investment Banking Report

By G Summers - Director of Brewin Dolphin Limited - Head of Investment Banking


Brewin Dolphin Investment Banking Division provides research, sales and corporate advisory services to over 100 institutional clients and more than 120 quoted companies.  


This has been a much more difficult year for our industry than last year as a result of the global financial crisis. Although we are a business with strong risk controls, we have still been impacted by the knock-on effects of this crisis on capital markets. As a result, the Investment Banking Division delivered a significantly reduced contribution to the Group for the period under review.  


Weak markets resulted in lower trading commissions than last year. However, the sales and research team still achieved a reasonable performance, as a result of its continuing focus on delivering sound, impartial investment advice to our institutional clients. As an aside, it was pleasing that our research team of 15 analysts was recognised at the 2008 AIM Awards in October, picking up the award for Best AIM Research.  


Encouragingly, the number of our corporate clients remained broadly similar to last year, as a result of our focus on building long-term relationships and on adding value by providing a professional service and quality advice. However, the substantial drop in the amount of fund-raising activity by quoted companies across all markets reduced the opportunity for corporate fees.


Overall, we believe the results of the division demonstrate a robust performance comparing particularly favourably with the performances of many in our peer group over the same period. The fact that we have been able to achieve these creditable results in such difficult markets is, without doubt, a reflection of the strength of the whole team.  


In the second half of the year, we responded in a measured way to market conditions by reducing costs across the division and this has provided a strong platform for the future. 


Whilst in the short term, capital markets may continue to be difficult, our highly respected team of professionals will seek to build on its strong credentials, prudent business model and long-term client relationships. 


Looking forward, we believe that there are significant opportunities for the business and we will continue with our focused strategy of investing for the future. Our objective is to deliver a meaningful and growing contribution to the Group as markets recover and into the longer term.

  

Consolidated Income Statement

52 week period ended 28 September 2008




52 weeks to 28 September 2008

Year to 30 September 2007


Note

£'000s

£'000s

Continuing operations




Revenue


186,969

198,032

Other operating income


19,526

11,247

Total income

1

206,495

209,279





Staff costs


(105,834)

(117,641)

Other operating costs


(70,607)

(56,882)



(176,441)

(174,523)





Operating profit

1

30,054

34,756

Other gains and losses


-

58

Finance income

2

7,142

7,406

Finance costs

2

(994)

(564)

Profit before tax

1

36,202

41,656

Tax

3

(11,127)

(12,708)

Profit attributable to equity shareholders of the parent from continuing operations

 25,075 

28,948





Earnings per share








From continuing operations 




Basic

5

12.2p

14.5p





Diluted

5

11.7p

13.8p







  Consolidated Statement of Recognised Income and Expense

52 week period ended 28 September 2008




52 weeks to 28 September 2008

Year to 30 September 2007



£'000s

£'000s




(Loss)/gain on revaluation of available-for-sale investments


(900)

816

Deferred tax credit/(charge) on revaluation of available-for-sale investments

254

(41)

Actuarial (loss)/gain on defined benefit pension scheme


(4,375)

1,420

Deferred tax credit/(charge) on actuarial (loss)/gain on defined benefit pension scheme

1,225

(620)

Current tax credit on share based payments



568

219

Deferred tax (charge)/credit on share based payments


(1,255)

220

Net (expense)/income recognised directly in equity


(4,483)

2,014

Transfers





Transfer gain on revaluation on sale of available-for-sale investments

-

(54)

Transfer tax on revaluation on sale of available-for-sale investments

-

18

Transfer to profit or loss on sale of available-for-sale investments

-

(36)



(4,483)

1,978

Profit for period



25,075

28,948

Total recognised income and expense for the period attributable to equity shareholders of the parent

20,592

30,926






  Consolidated Balance Sheet

As at 28 September 2008



As at 28 September 2008

As at 30 September 2007



£'000s

£'000s


Note



ASSETS




Non-current assets




Goodwill


93,023

65,767

Property, plant and equipment


27,975

20,949

Available-for-sale investments


10,626

11,526

Other receivables


2,098

2,059

Deferred tax asset


-

542



133,722

100,843

Current assets




Trading investments


724

1,251

Trade and other receivables


283,404

356,385

Cash and cash equivalents


60,546

87,946



344,674

445,582

Total assets


478,396

546,425





LIABILITIES




Current liabilities




Bank overdrafts


3,717

543

Trade and other payables


306,855

404,873

Current tax liabilities


484

4,965

Provisions


2,068

-

Shares to be issued including premium


8,233

4,504



321,357

414,885

Net current assets


23,317

30,697





Non-current liabilities




Retirement benefit obligation


7,964

9,735

Deferred tax liabilities


3,993

-

Deferred purchase consideration


2,960

664

Shares to be issued including premium


16,946

5,809



31,863

16,208

Total liabilities


353,220

431,093

Net assets


125,176

115,332





EQUITY

 



Called up share capital

6

2,080

2,035

Share premium account

6

90,145

86,968

Revaluation reserve

6

6,898

7,544

Merger reserve

6

4,562

4,562

Profit and loss account

6

21,491

14,223

Equity attributable to equity holders of the parent

6

125,176

115,332

  Company Balance Sheet

As at 28 September 2008




As at 28 September 2008

As at 30 September 2007



£'000s

£'000s


Note



ASSETS




Non-current assets




Investment in subsidiaries


141,052

125,160

Other receivables


430

430



141,482

125,590

Current assets




Trade and other receivables


7,708

11,327

Cash and cash equivalents


57

182



7,765

11,509

Total assets


149,247

137,099





LIABILITIES




Current liabilities




Trade and other payables


7,357

14,222

Shares to be issued including premium


8,233

4,504



15,590

18,726

Net current liabilities


(7,825)

(7,217)





Non-current liabilities




Shares to be issued including premium


16,946

5,809



16,946

5,809

Total liabilities


32,536

24,535

Net assets


116,711

112,564





EQUITY




Called up share capital

6

2,080

2,035

Share premium account

6

90,145

86,968

Revaluation reserve

6

-

-

Merger reserve

6

4,847

4,847

Profit and loss account

6

19,639

18,714

Equity attributable to equity holders

6

116,711

112,564


  

Consolidated Cash Flow Statement

52 week period ended 28 September 2008


  


52 weeks to 28 September 2008

Year to 30 September 2007


 Note 

 £'000s 

 £'000s 

 Net cash flow from operating activities 

14,104

54,183





 Cash flows from investing activities 




 Purchase of goodwill 


(10,681)

(6,114)

 Purchases of property, plant and equipment 


(15,746)

(10,106)

 Proceeds from sale of available-for-sale investments 

-

159

 Purchases of available-for-sale investments 


-

(400)

 Dividend received from available-for-sale investments 

   

404

322

 Net cash used in investing activities 


(26,023)

(16,139)





 Cash flows from financing activities 




 Dividends paid to equity shareholders 


(21,500)

(11,279)

 Proceeds on issue of shares 


2,845

2,259

 Net cash used in financing activities 


(18,655)

(9,020)





 Net (decrease)/increase in cash and cash equivalents  

(30,574)

29,024

 Cash and cash equivalents at the start of period 


87,403

58,379

 Cash and cash equivalents at the end of period 


56,829

87,403









Firm's cash 


38,189

68,960

Firm's overdraft


(3,717)

(543)

Firm's net cash


34,472

68,417

Client settlement cash


22,357

18,986

Net cash and cash equivalents


56,829

87,403





Cash and cash equivalents shown in current assets

60,546 

87,946

Bank overdrafts


(3,717)

(543)

Net cash and cash equivalents


56,829

87,403










  Notes


1

Segmental information


For management purposes, the Group is divided into two business streams: Investment Management and Investment Banking. These form the basis for the primary segment information reported below. All operations are carried out in the United Kingdom and the Channel Islands.


52 week period ended 28 September 2008






Discretionary Portfolio Management

  Advisory Portfolio Management

Total Investment Management

Investment Banking

Group


£'000s

£'000s

£'000s

£'000s

£'000s







Total income

122,975

70,721

193,696

12,799

206,495







Operating profit

18,765

10,791

29,556

498

30,054

Other gains and losses and finance income (net)




6,148

Profit before tax





36,202







Other Information






Capital expenditure



15,147

599

15,746 

Depreciation



8,459

126

8,585 

Share-based payments



621

40

661 







Segment assets excluding current tax assets



447,082

31,314

478,396 







Segment liabilities excluding current tax liabilities


321,422 

31,314

352,736







Year ended 30 September 2007






Discretionary Portfolio Management

  Advisory Portfolio Management

Total Investment Management

Investment Banking

Group


£'000s

£'000s

£'000s

£'000s

£'000s







Total income

110,413

69,326

179,739

29,540

209,279







Operating profit

15,154

12,555

27,709

7,047

34,756

Other gains and losses and finance income (net)




6,900

Profit before tax





41,656







Other Information






Capital expenditure



10,055

51

10,106

Depreciation



5,981

76

6,057

Share-based payments



522

85

607







Segment assets excluding current tax assets



398,112

148,313

546,425

Segment liabilities excluding current tax liabilities


277,815 

148,313 

426,128 

Investment banking profit was reduced by £500,000 of redundancy costs in the second half of 2008.  


2

Finance income and finance costs



2008

2007


52 Weeks

Year


 £'000s 

 £'000s 

Finance income



Interest income on pension plan assets

159

60

Dividends from available-for-sale investments

404

322

Interest on bank deposits

6,579

7,024


7,142

7,406




Finance costs



Finance cost of deferred consideration

981

515

Interest on bank overdrafts

13

49


994

564


  

3

Taxation



2008

2007


52 Weeks

Year


 £'000s 

 £'000s 

United Kingdom



  Current tax

5,955

10,247

  Prior year

192

430

Overseas tax



  Current tax

216

297

Prior year

5

5


6,368

10,979

United Kingdom deferred tax 



  Current year

5,024

2,127

  Prior year

(265)

(398)


11,127

12,708




United Kingdom corporation tax is calculated at 29% (2007: 30%) of the estimated assessable taxable profit for the period.




Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.





The charge for the year can be reconciled to the profit per the income statement as follows: 





Profit before tax

36,202

41,656

Tax at the UK corporation tax rate of 29% (2007: 30%)

10,499

12,497

Tax effect of expenses that are not deductible in determining taxable profit

551

395

Tax effect of prior year tax

197

435

Tax effect of prior year deferred tax

(265)

(398)

Tax effect of share-based payments

162

(259)

Tax effect of deferred tax timing differences

(191)

(84)

Tax effect of leasehold property depreciation

174

122

Tax expense

11,127

12,708

Effective tax rate for the year

31%

31%




In addition to the amount charged to the income statement, deferred tax relating to the revaluation of the Group's available for sale investments amounting to £(254,000) (2007: £41,000) has been (credited)/charged directly to equity and deferred tax relating to the actuarial gain/(loss) in the defined benefit pension scheme amounting to £1,225,000 (2007: £(620,000)) has been debited / (credited) directly to equity.


  

4

Dividends



2008

2007



52 Weeks

Year



£'000

£'000


Amounts recognised as distributions to equity holders in the period: 








First interim dividend paid 10 April 2007, 2.875p per share

-

5,791


Second interim dividend paid 25 October 2007, 3.375p per share

-

6,869


Final dividend paid 6 April 2008, 3.5p per share

7,248

-


Interim dividend paid 24 September 2008, 3.55p per share

7,383

-



14,631

12,660






Proposed final dividend for the 52 weeks ended 28 September 2008 of 3.55p (2007: 3.5p) per share based on shares in issue at 7 November 2008

(8 November 2007)


7,388


7,124






The proposed final dividend for the 52 week period ended 28 September 2008 of 3.55p per share, is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements. 


  

5

Earnings per share


The calculation of the basic and diluted earnings per share is based on the following data:








2008

2007




Number of shares




'000

'000

Basic



Weighted average number of shares in issue in the period

206,157

201,438

Diluted



Weighted average number of options outstanding for the period

2,415

5,135

Estimated weighted average number of shares earned under deferred consideration arrangements

8,527

4,712

Diluted weighted average number of options and shares for the period

217,099

211,285




Earnings attributable to ordinary shareholders




£'000s

£'000s

Profit attributable to equity shareholders of the parent from continuing operations

25,075

28,948

Finance costs of deferred consideration (Note a)

549

311

 less tax 

(159)

(93)

Adjusted basic profit for the period and attributable earnings

25,465

29,166




From continuing operations






Basic

12.2p

14.5p




Diluted

11.7p

13.8p







a) Finance costs of deferred consideration are added back where the issue of shares is more dilutive than the interest cost saved.





  

6

Reserves and reconciliation of changes in equity



 Called up share capital 

 Share premium account 

 Revaluation reserve 

 Merger reserve 

 Profit and loss account 

 Total 


 £'000s 

 £'000s 

 £'000s 

 £'000s 

 £'000s 

 £'000s 

Group







30 September 2006

1,995

82,755

6,805

4,562

(3,911)

92,206

Profit for the period

-

-

-

-

28,948

28,948

Dividends 

-

-

-

-

(12,660)

(12,660)

Issue of shares

40

4,213

-

-

-

4,253

Revaluation

-

-

816

-

-

816

Deferred and current tax on items taken directly to equity

-

-

(41)

-

(181)

(222)

Released on sale of available-for-sale investments

-

-

(36)

-

-

(36)

Share based payments

-

-

-

-

607

607

Actuarial gain on defined benefit pension scheme

-

-

-

-

1,420

1,420

30 September 2007

2,035

86,968

7,544

4,562

14,223

115,332

Profit for the period

-

-

-

-

25,075

25,075

Dividends 

-

-

-

-

(14,631)

(14,631)

Issue of shares

45

3,177

-

-

-

3,222

Revaluation

-

-

(900)

-

-

(900)

Deferred and current tax on items taken directly to equity

-

-

254

-

538

792

Share based payments

-

-

-

-

661

661

Actuarial loss on defined benefit pension scheme

-

-

-

-

(4,375)

(4,375)

28 September 2008

2,080

90,145

6,898

4,562

21,491

125,176









 Called up share capital 

 Share premium account 

Revaluation reserve 

 Merger reserve 

 Profit and loss account 

 Total 


£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

Company







30 September 2006

1,995

82,755

700

4,847

17,154

107,451

Profit for the period

-

-

-

-

13,613

13,613

Dividends 

-

-

-

-

(12,660)

(12,660)

Share based payments

-

-

-

-

607

607

Issue of shares

40

4,213

-

-

-

4,253

Released on sale of available-for-sale investments

-

-

(700)

-

-

(700)

30 September 2007

2,035

86,968

-

4,847

18,714

112,564

Profit for the period

-

-

-

-

14,895

14,895

Dividends 

-

-

-

-

(14,631)

(14,631)

Share based payments

-

-

-

-

661

661

Issue of shares

45

3,177

-

-

-

3,222

28 September 2008

2,080

90,145

-

4,847

19,639

116,711


  

7

Notes to the cash flow statement



2008 52 weeks

2007

Year


£'000s

£'000s

Group



Operating profit

30,054

34,756

Adjustments for:



 Depreciation of property, plant and equipment

8,585

6,057

 Loss on disposal of property, plant and equipment

135

-

 Goodwill impairment

430

-

 Retirement benefit obligation

(6,146)

(4,267)

 Share-based payment cost

661

607

 Discounting of shares to be issued

981

515

 Interest income

6,785

6,779

 Interest expense

(994)

(564)

Operating cash flows before movements in working capital

40,491

43,883

 Decrease/(Increase) in receivables and trading investments

73,280

(104,674)

 (Decrease)/Increase in payables

(89,528)

124,132

Cash generated by operating activities

24,243

63,341

 Tax paid

(10,139)

(9,158)

Net cash inflow from operating activities

14,104

54,183




Cash and cash equivalents comprise cash at bank and bank overdrafts.




  

8

Funds



At 28 September 2008

At 30 September 2007


 £ Billion 

 £ Billion 

In Group's nominee or sponsored member

10.0

10.4

Stock not held in Group's nominee

0.2

0.3

Discretionary funds under management

10.2

10.7




In Group's nominee or sponsored member

6.8

8.2

Other funds where valuations are carried out but where the stock is not under the Group's control

1.7

2.7

Advisory funds under management

8.5

10.9




Managed funds

18.7

21.6







In Group's nominee or sponsored member

3.7

3.2

Stock not held in Group's nominee

0.2

0.3

Execution only stock

3.9

3.5




Total funds

22.6

25.1




Stock



In Group's nominee or sponsored member

20.5

21.8

Stock not held in Group's nominee

2.1

3.3


22.6

25.1


9

Additional Information

The accounting policies used in arriving at the preliminary figures are consistent with those which will be published in the full financial statements and which were set out in the Group's Annual Report and Accounts for 2007.


This preliminary announcement was approved by the Board on 26 November 2008.


The financial information in this press release does not constitute statutory accounts for the period ended 28 September 2008 within the meaning of section 240 of the Companies Act 1985 but is derived from these accounts. Statutory accounts for 2007 have been delivered to the Registrar of Companies and those for 2008 will be delivered following the Company's Annual General Meeting. The Auditors have reported on the 2007 and 2008 accounts; their reports were unqualified, did not draw attention to any matters by way of emphasis without qualifying their report and did not contain statements under section 237(2) or (3) of the Companies Act 1985. Whilst the financial information included in this preliminary announcement has been computed in accordance with International Financial Reporting Standards (IFRSs), this announcement does not itself contain sufficient information to comply with IFRSs. The Company's 2008 statutory accounts do comply with IFRSs; it is expected that they will be published in full in January 2009.


The Annual General meeting will be held at 12 noon on 27 February 2009 at Merchant Taylors' Hall, 30 Threadneedle Street, London EC2R 8JB.


  

10 

Availability of Annual Report

The Annual Report will be posted to shareholders during January 2009; copies will be available from the registered office of the Company, 12 Smithfield StreetLondonEC1A 9BD. It will be available as a download from the Company's website www.brewin.co.uk.  

A further notification will be made to advise of posting and publishing on the website.



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