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Brewin Dolphin Hldgs (BRW)

  Print          Annual reports

Wednesday 29 July, 2015

Brewin Dolphin Hldgs

Interim Management Statement

RNS Number : 3622U
Brewin Dolphin Holdings PLC
29 July 2015
 

 

 

29 July 2015

 

Brewin Dolphin Holdings PLC

 

Interim Management Statement

For the quarter ended 30 June 2015

 

Q3 Highlights

 

·    

Total Discretionary Funds under Management £25.6bn (H1 2015: £26.2bn, FY 2014: £24.0bn).

·    

Total income of £73.0m (Q3 2014: £73.1m).

·    

Core income £66.9m (Q3 2014: £67.0 m).

 ú

Fee income £47.4m (Q3 2014: £46.1m).

 ú

Commission income £19.5m (Q3 2014: £20.9m).

·    

84% of core income from Discretionary service £56.1m (Q3 2014: £54.8m).

·    

Annualised rate of net inflow in Discretionary Funds under Management: 3% in Q3 2015, 5% YTD, in line with our target of 5% per annum, with £0.9bn of net inflows into this service YTD.

·    

Announced sale of Stocktrade on 14 May 2015 for £14m. Year to date Stocktrade revenue is £7.5m.

·    

The FTSE WMA Private Investor Series Balanced Portfolio index fell by 3.4% in the 3 month period to 30 June 2015, and the FTSE 100 fell by 3.7% in the same period.

 

 

David Nicol, Chief Executive said:

 

"The ongoing development of the business ensures the Group is well positioned to benefit from the long term opportunities in the Wealth Management sector. The Group's overall Q3 performance has been good, although weak global financial markets at the end of the quarter contributed to a decline in Funds under Management and impacted revenue progression. Our financial position remains strong and we continue to be confident about the long term growth of the business."

 



 

Funds under Management ("FUM")

 

£bn





% movement

 


29 June 2014

28 Sept 2014

31 March 2015

30 June 2015

12

months

9

months

3

months









Discretionary

23.7

24.0

26.2

25.6

8%

7%

(2)%









Advisory Managed

4.2

4.1

3.8

3.5

(17)%

(15)%

(8)%

Advisory Dealing

1.4

1.3

0.7

0.7

(50)%

(46)%

0%

Total Advisory

5.6

5.4

4.5

4.2

(25)%

(22)%

(7)%









Total Managed / Advised

29.3

29.4

30.7

29.8

2%

1%

(3)%









Execution Only

3.1

3.1

3.8

3.7

19%

19%

(3)%









Total Funds (excluding Stocktrade)

32.4

32.5

34.5

33.5

3%

3%

(3)%









Stocktrade

4.3

4.3

4.6

4.6

7%

7%

0%









Total Funds

36.7

36.8

39.1

38.1

4%

4%

(3)%









Percentage of managed FUM in Discretionary

81%

82%

85%

86%












Indices








FTSE WMA Private Investor Series Balanced Portfolio

3,435

3,462

3,684

3,557

3.6%

2.7%

(3.4)%

FTSE 100

6,758

6,649

6,773

6,521

(3.5)%

(1.9)%

(3.7)%

 

 

Funds under Management - detailed movement in the quarter

 

£bn

3 months to 30 June 2015


31 March 2015

Inflows

Outflows

Service Switching

Net Flows

Annualised Growth %

Market Movement

30 June 2015











Discretionary

26.2

0.5

(0.3)

-

0.2

3%

(0.8)

25.6










Advisory Managed

3.8

-

(0.1)

(0.1)

(0.2)

(21)%

(0.1)

3.5

Advisory Dealing

0.7

-

-

-

-

0%

-

0.7

Total Advisory

4.5

-

(0.1)

(0.1)

(0.2)

(18)%

(0.1)

4.2










Total Managed / Advised

30.7

0.5

(0.4)

(0.1)

-

0%

(0.9)

29.8










Execution Only

3.8

0.1

(0.2)

0.1

-

0%

(0.1)

3.7










Total Funds (excluding Stocktrade)

34.5

0.6

(0.6)

-

-

0%

(1.0)

33.5










Stocktrade

4.6

0.2

-

0.1

9%

(0.1)

4.6









Total Funds

39.1

0.8

(0.7)

-

0.1

1%

(1.1)

38.1










 

 



 

Funds under Management - detailed movement year to date

 

£bn

9 months to 30 June 2015


28 Sept

2014

 

Inflows

 

Outflows

 

Service

Switching

 

Net

Flows

 

Annualised

Growth%

 

Market

Movement

 

30 June

2015

 











Discretionary

24.0

1.6

(0.9)

0.2

0.9

5%

0.7

25.6










Advisory Managed

4.1

-

(0.2)

(0.5)

(0.7)

(23)%

0.1

3.5

Advisory Dealing

1.3

-

(0.1)

(0.5)

(0.6)

(62)%

-

0.7

Total Advisory

5.4

-

(0.3)

(1.0)

(1.3)

(32)%

0.1

4.2










Total Managed / Advised

29.4

1.6

(1.2)

(0.8)

(0.4)

(2)%

0.8

29.8










Execution Only

3.1

0.4

(0.5)

0.8

0.7

30%

(0.1)

3.7










Total Funds (excluding Stocktrade)

32.5

2.0

(1.7)

-

0.3

1%

0.7

33.5










Stocktrade

4.3

0.4

-

0.2

6%

0.1

4.6









Total Funds

36.8

2.4

(1.9)

-

0.5

2%

0.8

38.1

 

 

Discretionary Funds under Management ("FUM") were £25.6bn on 30 June 2015, a reduction of £0.6bn over the quarter, with the negative market performance offsetting net inflows.

 

The net inflows of £0.2bn in the quarter represented an annualised growth rate of 3%. Year to date net inflows were £0.9bn, an annualised growth rate of 5%, which is in line with our target. The weak performance of the financial markets contributed to a reduction in the market value of Discretionary FUM by £0.8bn in the quarter.

 

As a result of transfers of FUM between services, external outflows and weak market performance, Advisory FUM fell by £0.3bn to £4.2bn in Q3 2015. Execution Only FUM fell by £0.1bn in the quarter to £3.7bn.

 

 



 

Income 

£m

Third quarter ended


Year to date to


30 June

 2015

29 June

 2014

Change


 30 June

2015

29 June

2014

Change









Fees

 47.4

 46.1

3%


143.3

 132.1

8%

Commissions

 19.5

 20.9

(7)%


 59.6

 69.3

(14)%

Core Income

 66.9

 67.0

0%


 202.9

 201.4

1%

Other

 6.1

 6.1

0%


 18.5

 18.0

3%

Total Income

 73.0

 73.1

0%


 221.4

 219.4

1%

















Core Income by Service
















Discretionary

 56.1

 54.8

2%


168.8

 162.5

4%

Advisory / Execution only

 10.8

 12.2

(11)%


34.1

 38.9

(12)%

Core Income

 66.9

 67.0

0%


202.9

 201.4

1%

 

 

Total quarterly income of £73.0m was comparable to the same period in 2014 (Q3 2014: £73.1m).

 

Core income for the quarter, whilst broadly similar to Q3 2014, saw growth in fees of 3% to £47.4m, offset by commission income falling by 7% to £19.5m. Discretionary service income increased by 2% to £56.1m (Q3 2014: £54.8m), and contributed 84% of core income.

 

Other income was £6.1m (Q3 2014: £6.1m) with growth in financial planning income offset by reduced net interest income.

 

Year to date total income increased 1% to £221.4m from £219.4m in 2014.

 

Core income for the nine months grew by 1% to £202.9m, with fee income growing by 8% to £143.3m, offset by a 14% reduction in commission income to £59.6m. Fee income increased largely as a result of growth in Discretionary FUM (Q3 2015: £25.6bn, Q3 2014: £23.7bn). Commissions reduced as a result of lower transaction volumes and clients joining on "fee only" rate cards. The lower transaction volumes arose partly because of volatile markets in the early part of the financial year.

  

Other income increased by 3% to £18.5m in the year to date, with growth in financial planning income of £2m, largely offset by reduced net interest income.

 

The Group's financial position remains strong.

 

Stocktrade

The Group announced the sale of its Stocktrade business on 14 May 2015. Year to date Stocktrade revenue is £7.5m. Stocktrade's financial performance will be reported as discontinued operations for the financial year ended 30 September 2015, and prior year results will be restated accordingly.

 



 

Capital Markets Day

The Group will host a Capital Markets Day for institutional investors and analysts on Tuesday 22 September 2015.

 

For further information please contact:

David Nicol, Chief Executive

Andrew Westenberger, Finance Director

Andrew Monkhouse, Treasurer & Head of Investor Relations

 

Brewin Dolphin Holdings PLC

020 7248 4400

 

Andrew Hayes / Wendy Baker

Hudson Sandler

020 7796 4133

 


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