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Brewin Dolphin Hldgs (BRW)

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Thursday 30 May, 2002

Brewin Dolphin Hldgs

Interim Results

Brewin Dolphin Holdings PLC
30 May 2002


                                                                   30th May 2002


Brewin Dolphin Holdings PLC

Interim Results for the Months Ending 30th March 2002

Highlights


  • Funds under full discretionary management rose to a record £4.9bn (2001:
    £4.4 bn). Total funds under management stand at £16.8 bn (2001: £17bn)

  • Cost savings and operational efficiencies achieved. Fixed costs, excluding
    goodwill amortisation, have decreased by 6% overall despite the increase in
    the number of client executives

  • Pre-tax profit for 26 weeks ended 31st March 2002, down 32% to £7m (2001:
    £10.2m)

  • Acquisition of Popes (Stoke-on-Trent and Hull) and Aitken MacDonald
    (Dundee). New team also arrived in Glasgow

  • Market conditions remain quiet

  • Well positioned to benefit substantially from any upturn in investor
    confidence




Sir David Rowe-Ham said:

'With the FTSE Index in its present trading range, market sentiment and
confidence remain finely balanced. However, with our increased number of
discretionary clients and enlarged U.K. geographical base we will benefit
substantially from any upturn in confidence.'

Enquiries:
Brewin Dolphin                                            020 7248 4400
John Hall

Citigate Dewe Rogerson                                    020 7638 9571
Patrick Donovan/Sarah Gestetner



CHAIRMAN'S STATEMENT


Profit before tax, goodwill amortisation and exceptional items for the 26 weeks
to 31st March 2002 was £7 million (2001 - £10.2 million). Whilst this is a 32%
reduction against the comparable period in 2001, this result has been achieved
in very subdued market conditions, and reflects our close attention to cost
control. Fully diluted earnings per share for the half year, on a similar basis,
were 2.5p (2001 - 3.5p).


The first interim dividend of 2p per share which was paid on the 8th April was
unchanged. It is intended to pay a second interim dividend at the beginning of
October which will be announced in August. Last year, the payment was 1.5p.


Despite the movement in markets, I am glad to be able to report that funds under
full discretionary management have risen to £4.9bn, a record level. Total funds
under management stand at £16.8bn. The comparable figures a year ago were £4.4bn
and £17bn respectively. We have continued to focus on efficiencies and control
of our cost base. Fixed costs, excluding goodwill amortisation, have decreased
by 6% overall despite the increase in the number of client executives.


On 7th May we were glad to announce the acquisition of Popes, an old established
stockbroking partnership based in Stoke-on-Trent with a branch in Hull. Further,
on 13th May we acquired Aitken MacDonald independent financial advisers, who
have joined our office in Dundee. Since last reporting, we have been joined by a
further portfolio management team in Glasgow and we are also having on-going
discussions with a number of others who may wish to join us.


In March the Group's London Stock Exchange shares, no longer considered a
strategic holding, were sold for £8.3m and the excess over book value of £2.2m
taken to profit and loss as an exceptional item.


With the FTSE Index in its present trading range, market sentiment and
confidence remain finely balanced. However, with our increased number of
discretionary clients and enlarged U.K. geographical base we will benefit
substantially from any upturn in confidence.


                                                              Sir David Rowe-Ham

                                                                     30 May 2002


Unaudited Interim Consolidated Profit Statement
for the 26 weeks to 31 March 2002 (2001 26 weeks)
                                                        Notes       26 weeks        26 weeks        52 weeks
                                                                          to              to              to
                                                                    31 March        30 March    30 September
                                                                        2002            2001            2001
                                                                      £000's          £000's          £000's
Turnover                                                              51,472          58,667         111,591
Other operating income                                                 3,527           2,632           5,576
                                                                  ----------      ----------      ----------
                                                                      54,999          61,299         117,167
                                                                  ----------      ----------     -----------
Staff costs                                                 1       (28,634)        (29,705)        (55,399)
Other operating costs (including goodwill amortisation)             (23,413)        (24,471)        (50,013)
                                                                 -----------    ------------     -----------
                                                                    (52,047)        (54,176)       (105,412)
                                                                 -----------    ------------    ------------
OPERATING PROFIT                                                       2,952           7,123          11,755
Profit on disposal of fixed assets                          2          2,206               -               -
Other interest receivable and similar income                             989           1,912           3,269
Interest payable and similar charges                                    (81)           (176)           (298)
PROFIT ON ORDINARY ACTIVITIES BEFORE
GOODWILL AMORTISATION AND EXCEPTIONAL ITEMS                            6,978          10,248          17,501
Goodwill amortisation and exceptional items net             3          (912)         (1,389)         (2,775)
                                                                  ----------      ----------       ---------
PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION                                             3          6,066           8,859          14,726
Tax on profit on ordinary activities                                 (2,404)         (3,233)         (5,599)
                                                                  ----------    ------------   -------------
PROFIT ON ORDINARY ACTIVITIES
AFTER TAXATION FOR THE PERIOD                                          3,662           5,626           9,127
Dividends                                                   4        (3,688)         (3,598)         (6,354)
                                                                 -----------     -----------      ----------
                                                                        (26)           2,028           2,773
                                                                      ======         =======        ========
EARNINGS PER SHARE
Basic                                                                    2.0 p           3.1 p           5.0 p
Diluted                                                                  1.9 p           2.8 p           4.7 p
Excluding goodwill amortisation and exceptional items
Basic                                                       3            2.6 p           3.9 p           6.6 p
Diluted                                                     3            2.5 p           3.5 p           6.1 p
                                                                       000's           000's           000's
Average number of shares in issue                                    184,367         179,753         181,011
Average number of shares in issue - fully diluted                    196,332         198,707         195,357



CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2002
                                                      Notes              As at                            As at
                                                                      31 March                     30 September
                                                                          2002                             2001
                                                                         £000s                            £000s
FIXED ASSETS
Intangible assets                                                       49,755                           51,840
Tangible assets                                                         14,194                           13,998
Investments                                                                431                            6,354
                                                                     ---------                       ----------
                                                                        64,380                           72,192
                                                                        ======                          =======
CURRENT ASSETS
Investments                                                                565                              649
Debtors                                                                230,298                          165,035
Cash at bank and in hand                                                47,169                           41,545
                                                                   -----------                      -----------
                                                                       278,032                          207,229
                                                                    ----------                       ----------
CREDITORS: amounts falling due within one year                       (250,771)                        (180,380)
                                                                  ------------                   --------------
NET CURRENT ASSETS                                                      27,261                           26,849
                                                                 -------------                  ---------------
TOTAL ASSETS LESS CURRENT LIABILITIES                                   91,641                           99,041
PROVISIONS FOR LIABILITIES AND CHARGES                                 (1,248)                          (1,485)
                                                               ---------------                     ------------
SHAREHOLDERS' FUNDS                                       5             90,393                           97,556
                                                                      ========                          =======

CONSOLIDATED CASH FLOW STATEMENT
FOR THE 26 WEEKS TO THE 31 MARCH 2002 (2001 26 WEEKS)
                                                                   26 weeks        26 weeks          52 weeks
                                                                         to              to                to
                                                                   31 March        30 March      30 September
                                                                       2002            2001              2001
                                                                     £000's          £000's            £000's
Cash inflow/(outflow) from operating activities                      10,367         (2,594)             7,151
Return on investment and servicing of finance                           908           1,736             2,971
Taxation                                                            (2,922)         (3,346)           (6,243)
Capital expenditure                                                 (2,972)         (3,515)           (7,609)
Disposal of the Stock Exchange shares                                 8,290               -                 -
Acquisitions                                                        (7,245)         (1,229)           (1,586)
Equity dividends paid                                               (2,756)         (2,250)           (5,836)
                                                                -----------    ------------    --------------
CASH INFLOW/(OUTFLOW) BEFORE THE MANAGEMENT
OF LIQUID RESOURCES AND FINANCING                                     3,670        (11,198)          (11,152)
Financing                                                               152            (61)               698
                                                                -----------       ---------        ----------
INCREASE/(DECREASE) IN CASH IN THE PERIOD                             3,822        (11,259)          (10,454)
                                                                    =======         =======           =======
RECONCILIATION OF OPERATING PROFIT TO
OPERATING CASH FLOW
Operating profit                                                      2,952           7,123            11,755
Depreciation and amortisation                                         4,776           3,591             7,625
Movement on other current assets                                      2,639        (13,308)          (12,229)
                                                                  ---------     -----------          --------
Net cash inflow/(outflow) from operating activities                  10,367         (2,594)             7,151
                                                                     ======         =======           =======

ANALYSIS OF NET FUNDS
                                                                      2002        Cash flow              2001
                                                                    £000's           £000's            £000's
Group's cash                                                        23,488            4,445            19,043
Overdrafts                                                         (2,605)          (1,802)             (803)
                                                               -----------      -----------       -----------
Group's net funds                                                   20,883            2,643            18,240
Client settlement cash                                              23,681            1,179            22,502
                                                              ------------    -------------    --------------
Net cash                                                            44,564            3,822            40,742
                                                                   =======          =======           =======


Notes 

 1. Included in staff costs is anticipated profit share of £4,871,000 ( 2001 half
    year £4,530,000, full year £8,529,000) and exceptional redundancy and
    similar costs £1,118,000 (2001 £nil).

    2. Profit on disposal of fixed assets                                              26 weeks        26 weeks
                                                                                             to              to
                                                                                       31 March        30 March
                                                                                           2002            2001
                                                                                         £000's          £000's
    Profit on sale of the London Stock Exchange shares                                    2,206               -
                                                                                        =======      ==========

    In March 2002 the Group's holding of London Stock Exchange shares was sold
    for £8.3m, the excess over the book value at 30 September 2001 has been
    taken to profit and loss in the period, and the Previously established
    revaluation reserve of £4,259,000, net of deferred tax, taken to profit and
    loss reserve.


 2. Profit excluding goodwill amortisation and exceptional items

            Profit on ordinary activities before taxation                             6,066          8,859

                        Goodwill amortisation                                        2,000           1,389
                        Profit on sale of Stock Exchange                           (2,206)               -
                        shares
                        Redundancy and similar costs                                 1,118               -
                                                                                 ---------        --------

            Pre tax profit before exceptional items and goodwill                      6,978           10,248
            amortisation
            Taxation                                                                (2,404)          (3,233)
            Net taxation on goodwill amortisation and exceptional items                 239                -
                                                                                -----------    -------------
            Adjusted attributable earnings                                            4,813            7,015
                                                                                  =========        =========

4. Dividend

First interim dividend, paid 8 April 2002, 2p per share                               3,688           3,598
(2001 2p).
                                                                                   ========        ========

 5. Movement in shareholders' fund
                                                                         share    
                                                         other         capital    shares to be 
                                                      reserves     and premium          issued            Total      
                                                        £000's          £000's          £000's           £000's
    Balance at 30 September 2001                         (500)          73,299          24,757           97,556
    Completion of prior period acquisitions            (1,160)           6,780        (10,257)          (4,637)
    Estimated movement in value of shares to
    be issued                                                -               -         (2,500)          (2,500)
    Profit for the period                                3,662               -               -            3,662
    Dividend                                           (3,688)               -               -          (3,688)
                                                  ------------    ------------    ------------    -------------
    Balance at 31 March 2002                           (1,686)          80,079          12,000           90,393
                                                       =======         =======         =======           ======


 6. In accordance with current corporate governance practice, we have reviewed
    the appointment of our auditors, and following a tender process have
    appointed Deloitte & Touche to be auditors to the Group for the 2002
    accounts. This re-appointment will be put to shareholders for confirmation
    at the next Annual General Meeting.


    7.       The interim figures are unaudited. The accounts for the year ended
    30 September 2001 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.


INDEPENDENT REVIEW REPORT TO BREWIN DOLPHIN HOLDINGS PLC


Introduction

We have been instructed by the company to review the financial information for
the six months ended 31 March 2002 which comprises the profit and loss account,
the balance sheet, the cash flow statement and related notes 1 to 7. We have
read the other information contained in the interim report and considered
whether it contains any apparent misstatements or material inconsistencies with
the financial information.


Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.


Review work performed

We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom auditing standards and therefore
provides a lower level of assurance than an audit. Accordingly, we do not
express an audit opinion on the financial information.


Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 March 2002.


Deloitte & Touche

Chartered Accountants

Stonecutter Court

1 Stonecutter Street

London

EC4A 4TR


30 May 2002


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