Brewin Dolphin Holdings PLC
5 June 2000
Brewin Dolphin Holdings PLC
Interim Results for 27 Weeks Ended 31 March 2000
Highlights
- Total income £62.5 million - up 49%
- Profit before tax £13.8m - up 48%
- Earnings per share 5.5p - up 53%
- Total funds under management £15bn, of which £3.8bn
is under discretion.
- Three months positive contribution from acquisition of team
from Williams de Broe.
- Stocktrade our on line execution business had an extremely
active six months and our plans for an exciting future for
this business continue to evolve.
- Acquisition of Hill Osborne with branches in Lincoln,
Scarborough, Bradford and Norwich.
'We have not only had an exceptionally strong first half but have
also been successful in furthering our long term aim of attracting
investment managers with quality business to join us. Whilst
markets are currently quieter the second half has started well.'
Sir David Rowe-Ham
Chairman
Enquiries:
John Hall
Managing Director
Brewin Dolphin Holdings PLC Tel: 020 7248 4400
Bob Gregory
Bell Pottinger Financial Tel: 020 7353 9203
CHAIRMAN'S STATEMENT
Our half year trading to the 31st March 2000 has resulted in a
further strong advance in profits and earnings per share. This
period covered the exceptional activity and volatility in world
stockmarkets experienced in the opening months of the new
Millennium. It has been a time of challenge for investors and has
illustrated vividly, once again, the value of professional
investment management and advice.
The increase in volumes on the Stock Exchange has been reflected
in our figures for the six months ended 31st March 2000. Income
for the 27 weeks (1999 26 weeks) was up 49% at £62.5m. After
increased costs, pre-tax profits amounted to £13.8m, an increase
of 48%. Fully diluted earnings per share at 5.5p showed an
increase of 53%. An interim dividend of 10p per share (a 25%
increase) pre the 5 for 1 split, was paid on 6th April and,
following our usual pattern, a second interim dividend will be
announced in July for payment in October.
During the period, we had three months' contribution from the team
that joined us from Williams de Broe. They have made a positive
contribution already and are fitting in particularly well. The
acquisition of Broadbridge, the partnership based in Leeds, was
completed on the 26th May. Furthermore, we are delighted to be
able to announce today, that agreement has been reached for the
acquisition of Hill Osborne & Co., who are based in Leicester,
with branches in Lincoln, Scarborough, Bradford and Norwich.
Theirs is an old established business with an excellent reputation
and will fit in well, both culturally and geographically with our
existing business. Full details are the subject of a separate
release. In addition, a number of individual managers with an
established clientele have recently joined our London office.
Total funds under management amounted to £15 bn at 31st March and
funds under full discretionary management climbed to £3.8 bn. A
late surge of interest took the total of our ISA's under
management to over £120m.
Stocktrade, our on-line execution only business based in Edinburgh
had an extremely active six months and our plans for an exciting
future for this business continue to evolve.
From all the above, it can be seen that we have not only had an
exceptionally strong first half but have also been successful in
furthering our long term aim of attracting investment managers
with quality business to join us. Whilst markets are currently
quieter the second half has started well.
Profit and Loss Account
For the 27 weeks to 31 March 2000 (1999 26 weeks)
Notes 27 weeks 26 weeks 52 weeks
to 31 March to 26 March to 26
September
2000 1999 1999
£000's £000's £000's
Turnover 61,855 41,253 85,618
Other operating
income 625 800 1,985
--------- --------- ---------
62,480 42,053 87,603
--------- --------- ---------
Staff costs 1 (29,487) (19,081) (39,483)
Other operating costs (20,725) (15,289) (33,711)
--------- --------- ---------
(50,212) (34,370) (73,194)
--------- --------- ---------
OPERATING PROFIT 12,268 7,683 14,409
Profit on disposal of 2
fixed assets - 410 536
Other interest
receivable and
similar income 1,626 1,287 2,702
Interest payable and
similar charges (84) (20) (131)
--------- --------- ---------
PROFIT ON ORDINARY
ACTIVITIES BEFORE
TAXATION 13,810 9,360 17,516
Taxation on profit on
ordinary activities (4,602) (3,204) (5,707)
--------- --------- ---------
PROFIT ON ORDINARY
ACTIVITIES AFTER
TAXATION 9,208 6,156 11,809
Dividends 3 (3,336) (2,514) (4,093)
--------- --------- ---------
5,872 3,642 7,716
========= ========= =========
EARNINGS PER SHARE
Adjusted for 5 for 1
split on 10 April
2000
Basic 5.7 3.9 7.5
Basic pre profit on
disposal of fixed
assets and goodwill
amortisation 5.8 3.8 7.2
Fully diluted 5.3 3.8 7.4
Pre profit on
disposal of fixed
assets and goodwill
amortisation 5.5 3.6 7.0
Average number of
shares in issue 162,846,528 156,751,885 156,972,940
Average number of
shares in issue -
fully diluted 172,378,918 164,073,036 164,653,500
Consolidated Balance Sheet as at 31 March 2000
Notes As At As At
31 March 26 September
2000 2000
£000's £000's
FIXED ASSETS
Intangible assets 16,538 409
Tangible assets 9,433 8,764
Investments 240 240
---------- ----------
26,211 9,413
========== ==========
CURRENT ASSETS
Investments 809 403
Debtors 496,796 254,745
Cash at bank and in hand 54,217 40,888
---------- ----------
551,822 296,036
---------- ----------
CREDITORS: amounts falling due
within one year (529,361) (276,775)
---------- ----------
NET CURRENT ASSETS 22,461 19,261
---------- ----------
TOTAL ASSETS LESS CURRENT
LIABILITIES 48,672 28,674
CREDITORS: amounts falling due
after more than one year (1,439) (1,439)
---------- ----------
Shareholders' funds 4 47,233 27,235
========== ==========
Brewin Dolphin Holdings PLC
Consolidated Cash Flow Statement
For the 27 weeks to the 31 March 2000 (1999 - 26 weeks)
27 weeks 26 weeks 52 weeks
to to to
31 March 26 March 26 September
2000 1999 1999
£000's £000's £000's
Cash flow from operating
activities 2,143 (810) 19,177
Return on investment and
servicing of finance 1,542 1,267 2,571
Taxation (1,768) (3,738) (6,717)
Capital expenditure (2,218) (3,287) (6,520)
Acquisitions and disposals
net (16,323) 500 69
Equity dividends paid (1,610) (1,090) (3,610)
---------- ---------- ----------
CASH (OUTFLOW)/INFLOW BEFORE
THE MANAGEMENT OF LIQUID
RESOURCES AND FINANCING (18,234) (7,158) 4,970
Financing 13,886 (161) (443)
---------- ---------- ----------
(DECREASE)/INCREASE IN CASH
IN THE PERIOD (4,348) (7,319) 4,527
========== ========== ==========
Notes to the cash flow
statement
RECONCILIATION OF OPERATING
PROFIT TO OPERATING CASH
FLOW
Operating profit 12,268 7,683 14,409
Depreciation and loss on
sale of fixed assets 1,772 1,257 2,850
Movement on other current
assets (11,897) (9,750) 1,918
---------- ---------- ----------
Net cash flow from operating
activities 2,143 (810) 19,177
========== =========== =========
ANALYSIS OF NET FUNDS 2000 Cash Flow 1999
Firms cash 7,112 (9,997 17,109
Overdrafts (18,062) (17,887) (175)
Finance lease (120) 210 (330)
---------- ---------- ----------
Firms' net funds (11,070) (27,674) 16,604
Client settlement cash 47,105 23,326 23,779
---------- ---------- ----------
Net cash 36,035 (4,348) 40,383
========== ========== ==========
Notes to the Accounts
1. Included in staff costs is anticipated profit share
£10,163,000 (1999 £5,293,000).
2. 1999 profit on sale of management contracts of the unit
trusts managed by Pilgrim Unit Trust Managers Limited. Post
tax profit £180,000.
3. Dividend
First interim dividend, paid 6 April 2000, 10p per share, pre
5 for 1 split (1999:8p).
4.
Movement in shareholders' funds £000's
Balance at 26 September 1999 27,235
Issue of shares 14,096
Change in value of shares to be
issued 1,300
Adjustment to goodwill written
off to reserves (1,270)
Profit for the period 9,208
Dividend (3,336)
----------
Balance at 31 March 2000 47,233
==========
5. The interim figures are unaudited. The accounts for the year
ended 26 September 1999 are abridged. Full accounts for that
period on which the auditors of the Group made an unqualified
audit report have been delivered to the Registrar of
Companies. A copy of this statement is available at the
Company's registered office at 5 Giltspur Street, London,
EC1A 9BD and a copy will be posted to all shareholders.