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Brewin Dolphin Hldgs (BRW)

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Thursday 31 January, 2013

Brewin Dolphin Hldgs

Interim Management Statement

RNS Number : 7408W
Brewin Dolphin Holdings PLC
31 January 2013
 



 

 

 

31 January 2013

Brewin Dolphin Holdings PLC

 

Interim Management Statement

Quarter ended 31 December 2012

 

This Interim Management Statement ("IMS") is issued by Brewin Dolphin Holdings PLC as required by the UK Listing Authority's Disclosure and Transparency rules. It covers the period from 1 October 2012 to 30 January 2013, and includes trading results for the three months ended 31 December 2012.

 

Income

Total Income increased by 13.7% in the first quarter of the financial year to £67.8m from £59.7m for the equivalent period last year. This is a good result against the comparable period last year; when compared to the preceding quarter ended 30th September it is down 5% primarily due to the ongoing reduction of trail income in preparation for RDR implementation.

 

The trend towards an increasing proportion of recurring fee income is continuing, albeit at a marginally slower pace than during 2012. Repricing and moving to new national rate cards remains on track for completion by the end of this financial year although progress was slower than anticipated in the first quarter.

 

The recovery in the commission levels from the sharp falls experienced in the first quarter of the last financial year has stabilised and first quarter total commission income was in line with the average for the final two quarters of the previous financial year.

 










Quarter to

Quarter to

% change


31 December 2012

31 December 2011



 £'000

£'000






Non-recurring income

 21,229

18,169

16.8%

Recurring income

 43,073

37,269

15.6%


 64,302

55,438

16.0%

Other operating income

 3,547

4,245

-16.4%

Total income

 67,849

59,683

13.7%

 

 

 




Funds under Management

Overall Funds under Management were stable at £26.0bn in the first quarter. Advisory funds under management saw net outflows as a result of ongoing service reviews as part of the move to new pricing. Underlying inflows into discretionary continued at the strong levels achieved during the preceding 12 months, whilst outflows in the quarter were higher than in recent quarters due to exceptional outflows relating to the departure of an associate managed team.

 

 

 

The value of clients' funds under the Group's management was as follows:

 






Advisory funds under management

Discretionary funds under management

Total managed funds


£ billion

£ billion

£ billion

Value of funds at 30 September 2012

7.7

 18.2

25.9

Inflows

0.1

 0.4

0.5

Outflows

(0.2)

(0.2)

 (0.4)

Transfers

(0.1)*

 -

 (0.1)

Market movement

-

 0.1

0.1

Value of funds at 31 December 2012

7.5

 18.5

26.0

* transferred to Execution Only service








% increase in funds since 30 September 2012

-2.6%

1.6%

0.4%

 

 

Indices





 At

31 December 2012

 At

30 September 2012

 % Change

FTSE APCIMS Private Investor Series Balanced Portfolio

 3,063

3,014

1.6%

FTSE 100

 5,898

5,742

2.7%

 

Ongoing underlying profitability has resulted in both working and regulatory capital surpluses being maintained whilst the Group has continued with its programme of significant capital investment in the project to implement a new operating model. Design and testing of the new settlement system is ongoing although some delays experienced in the quarter will result in slightly higher than forecast full year capital expenditure.

 

Outlook

The Group is in a period of consolidation after the expansion-led growth of recent years. In particular, the priority remains continued improvement in the quality of service to clients, increasing shareholder returns through improved operational efficiency and ensuring that the highest standards of compliance with regulatory requirements continue to be met.

 

To fulfil these aims, whilst still growing through organic fund inflows, the Group has committed itself to a significant programme of organisational change with material capital investment in new systems. The Group retains this commitment and will continually examine opportunities to improve business efficiency. In particular, future efforts will not be limited to further investment in systems and people but will also encompass a programme of organisational efficiency, underpinned by rigorous and disciplined cost control.

 

The Group believes this is the right strategy and, though mindful of the short term risks inherent to it, is confident that achievement of this should deliver sustainable long term shareholder value.

 

 

For further information please contact:

 

Jamie Matheson

Andrew Hayes/Wendy Baker

Executive Chairman

Hudson Sandler

Brewin Dolphin


020 7248 4400

020 7796 4133

 

Notes for editors

 

1.

The Group is made up of Brewin Dolphin Holdings PLC and it subsidiaries (the "Group").

 

2.

Brewin Dolphin Limited  is the principal operating company of Brewin Dolphin Holdings PLC, it is authorised and regulated by the Financial Services Authority and is a member of the London Stock Exchange. Tilman Brewin Dolphin Limited is the Group's Irish subsidiary.

 

 

 

 

 


This information is provided by RNS
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