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Brewin Dolphin Hldgs (BRW)

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Tuesday 01 June, 2004

Brewin Dolphin Hldgs

Interim Results

Brewin Dolphin Holdings PLC
01 June 2004

1st June 2004

                          BREWIN DOLPHIN HOLDINGS PLC
               INTERIM RESULTS FOR THE 26 WEEKS TO 26 MARCH 2004

                                 Highlights

  • Total income £59 million (2003: £46 million) an increase of 28%.

  • Profit £8.9 million before tax and goodwill amortisation (2003: £1.6
    million) an increase of 5 times.

  • Profit £6.5 million before tax but after goodwill amortisation (2003: loss
    £0.6 million)

  • Diluted earnings per share excluding goodwill amortisation 3.0p (2003:
    0.5p) an increase of 6 times

  • Basic and diluted earnings per share 2.0p (2003: (0.6)p)

  • First interim dividend of 1.5p per share (2003: 1.0p).

  • Funds under discretionary management £5.1 billion (September 2003: £4.9
    billion, March 2003: £4.5 billion).

  • Advisory funds remain around £9 billion.

Sir Fred Holliday, Chairman said:

'The start of the second part of the year has continued to benefit from the
improvement in investor confidence. Brewin Dolphin continues to grow the funds
under discretionary management. We are also attracting high quality
professionals and this month are opening a new branch in Exeter, extending our
coverage in the West Country.'


For further information

John Hall
Brewin Dolphin 020 7248 4400

Anthony Kennaway/Sarah Gestetner
Citigate Dewe Rogerson 020 7638 9571


CHAIRMAN'S STATEMENT

I am pleased to report that profits before tax and goodwill amortisation for the
first half of our current financial year were £8.9m as compared to £1.6m twelve
months ago and £7m two years ago. Profit for the half year before tax but after
goodwill amortisation amounted to £6.5m compared to a loss of £0.6m last year,
and a profit of £6m in the comparative period in 2002.

We have seen a welcome improvement in the investment climate during the period,
certainly by comparison with 2003, the first part of which, it will be recalled,
was a particularly depressed time in markets.  To put our current figures in
context it is necessary to go back two years. The FTSE 100 Index then averaged
5200 against 3800 last year and 4300 this year.  The extent of the recovery in
our company's figures reflects the fact that the measures we have already taken
to reduce the firms cost base have had a positive effect.

The first interim dividend of 1.5p per share (2003: 1.0p) was declared at our
AGM and paid on the 6th April 2004.  The Board will consider the payment of the
second interim dividend in September and it would be paid towards the end of
October.

The start of the second part of the year has continued to benefit from the
improvement in investor confidence. Brewin Dolphin continues to grow the funds
under discretionary management which now stand at £5.1bn. This compares with
£4.9bn at the year-end and £4.5bn a year ago.  Funds under advice remain around
£9bn.  We are also attracting high quality professionals and this month are
opening a new branch in Exeter, extending our coverage in the West Country.


Sir Fred Holliday
1 June 2004



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 26 March 2004, which comprises the consolidated profit and
loss account, the consolidated balance sheet, the consolidated cash flow
statement and related notes 1 to 5. 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.

This report is made solely to the company in accordance with Bulletin 1999/4
issued by the Auditing Practices Board.  Our work has been undertaken so that we
might state to the company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the company, for our review work, for this report, or for the conclusions we
have formed.

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 26 March 2004.


Deloitte & Touche LLP
Chartered Accountants
London

1 June 2004


Unaudited Interim Consolidated Profit Statement
For the 26 weeks to 26 March 2004 (2003: 26 weeks)

                                           Notes          26 weeks         26 weeks          52 weeks
                                                                to               to                to
                                                          26 March         28 March      26 September
                                                              2004             2003              2003
                                                            £'000s           £'000s            £'000s

Turnover                                                    54,773           41,917            93,533
Other operating income                                       4,146            4,052             7,512
                                                            58,919           45,969           101,045
Staff costs                                               (29,034)         (24,984)          (55,795)
Other operating costs
   operating costs                                        (22,248)         (20,177)          (42,520)
   goodwill amortisation                                   (2,345)          (2,196)           (4,279)
                                                          (24,593)         (22,373)          (46,799)
                                                          (53,627)         (47,357)         (102,594)
OPERATING PROFIT/(LOSS)                                      5,292          (1,388)           (1,549)
Other interest receivable and similar income                 1,264              812             1,694
Interest payable and similar charges                          (22)             (20)              (70)
PROFIT ON ORDINARY ACTIVITIES BEFORE
GOODWILL AMORTISATION                                        8,879            1,600             4,354
                                                                                             
Goodwill amortisation                                      (2,345)          (2,196)           (4,279)
PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE                 
TAXATION                                                     6,534            (596)                75                   
Tax on profit/(loss) on ordinary activities                (2,588)            (497)           (1,034)
PROFIT/(LOSS) ON ORDINARY ACTIVITIES AFTER          1        3,946          (1,093)             (959)
TAXATION
Dividends                                           2      (2,932)          (1,911)           (3,825)
                                                             1,014          (3,004)           (4,784)

EARNINGS PER SHARE
Basic                                                         2.0p            (0.6)p            (0.5)p
Diluted                                                       2.0p            (0.6)p            (0.5)p
Excluding goodwill amortisation

Basic                                                         3.1p              0.5p              1.5p
Diluted                                                       3.0p              0.5p              1.4p

                                                             '000s             '000s             '000s
Average number of shares in issue                          193,292           191,008           191,081
Average number of shares in issue - fully diluted          198,923           194,855           197,442


CONSOLIDATED BALANCE SHEET AS AT 26 MARCH 2004


                                            Notes            As at          As at             As at
                                                          26 March       28 March      26 September
                                                              2004           2003              2003
                                                            £'000s         £'000s            £'000s
FIXED ASSETS

  Intangible assets                                         38,315         42,122            40,202
  Tangible assets                                            7,961         11,548             9,050
  Investments                                                  431            431               431
                                                            46,707         54,101            49,683
CURRENT ASSETS

  Investments                                                  263            501               374
  Debtors                                                  201,891        169,160           152,377
  Cash at bank and in hand                                  36,547         25,903            26,526
                                                           238,701        195,564           179,277



CREDITORS: amounts falling due within one year           (206,410)      (171,154)         (151,974)


NET CURRENT ASSETS                                          32,291         24,410            27,303

TOTAL ASSETS LESS CURRENT LIABILITIES                       78,998         78,511            76,986


PROVISIONS FOR LIABILITIES AND CHARGES           3         (2,355)        (2,533)           (2,606)


SHAREHOLDERS' FUNDS                              4          76,643         75,978            74,380


CONSOLIDATED CASH FLOW STATEMENT
FOR THE 26 WEEKS TO THE 26 MARCH 2004 (2003: 26 WEEKS)

                                                      26 weeks        26 weeks         52 weeks
                                                            to              to               to
                                                      26 March        28 March     26 September
                                                          2004            2003             2003
                                                        £'000s          £'000s           £'000s

Net cash inflow/(outflow) from operating activities     13,311         (1,544)            1,951
Return on investment and servicing of finance            1,242             792            1,624
Taxation                                               (1,286)         (1,438)          (2,425)
Capital expenditure                                    (1,127)           (706)          (1,802)
Acquisitions                                             (298)           (951)          (1,111)
Equity dividends paid                                  (1,913)         (2,860)          (4,772)
CASH  INFLOW/(OUTFLOW) BEFORE FINANCING                  9,929         (6,707)          (6,535)
Financing                                                  941              9               188
INCREASE/(DECREASE) IN CASH IN THE PERIOD               10,870         (6,698)          (6,347)



Notes to the cash flow statement

RECONCILIATION OF OPERATING PROFIT/(LOSS) TO
OPERATING CASH FLOW
Operating profit/(loss)                                 5,292          (1,388)          (1,549)
Depreciation and amortisation                           4,561            5,371           11,048
Increase/(decrease) in provisions                          80          (1,050)            (681)
Movement on other current assets                        3,378          (4,477)          (6,867)
Net cash inflow/(outflow) from operating               13,311          (1,544)            1,951
activities


ANALYSIS OF NET FUNDS
                                                         2004       Cash flow              2003
                                                       £'000s          £'000s            £'000s


Firm's cash                                            25,347          10,584            14,763
Firm's overdrafts                                         (3)             849             (852)
Firm's net funds                                       25,344          11,433            13,911
Client settlement cash                                 11,200           (563)            11,763
Net cash                                               36,544          10,870            25,674



Notes
                                                               26 weeks          26 weeks           52 weeks
                                                            to 26 March       to 28 March    to 26 September
                                                                   2004              2003               2003
                                                                 £'000s            £'000s             £'000s
1. Attributable earnings

            Basic profit/(loss) for the period and                3,946            (1,093)             (959)
            attributable earnings
                                                                  2,345             2,196             4,279
            Goodwill amortisation
                                                                  (251)              (163)             (494)
            less tax on goodwill amortisation
            Adjusted attributable earnings                        6,040                940             2,826

2. Dividend


First interim dividend, paid 6 April 2004, 1.5p per share         2,932              1,911             3,825
(2003: 1.0p)

3. Provision for liabilities and charges
                                                           Provision for           Deferred            Total
                                                           split capital           taxation
                                                       trust liabilities
                                                                  £'000s             £'000s           £'000s

Balance at 27 September 2003                                       1,819                787            2,606
Charge for the period                                                293              (331)             (38)
Utilised during the period                                         (213)                  -            (213)
Balance at 26 March 2004                                           1,899                456            2,355


The Group continues to monitor its split capital liabilities. A small  additional provision has been made
in relation to ongoing costs.


4. Movement in shareholders' funds
                                                          Other reserves      Share capital            Total
                                                                                and premium
                                                                                  including
                                                                               shares to be
                                                                                     issued
                                                                  £'000s             £'000s           £'000s

    Balance at 27 September 2003                                 (8,684)             83,064           74,380
    Reduction in shares to be issued in                                -            (2,000)          (2,000)
    period
    Issue of shares in period                                          -              2,880            2,880
    Prior period goodwill adjustment                                 369                  -              369
    Profit for the period                                          3,946                  -            3,946
    Dividend                                                     (2,932)                  -          (2,932)
    Balance at 26 March 2004                                     (7,301)             83,944           76,643

5.  The interim accounts, which are unaudited, have been prepared on the basis
of the accounting policies set out in the Annual Report 2003. The figures shown
for the full year ended 26 September 2003 represent an abridged version of the
audited financial statements of Brewin Dolphin Holdings PLC for that year, which
have been filed with the Register of Companies and on which the auditors have
given an unqualified report which did not contain statements under section 237
(2) or (3) of the Companies Act 1985.  The financial information contained in
this interim report does not constitute the Group's statutory accounts within
the meaning of section 240 of the Companies Act 1985. A copy of this statement
is available the Company's registered office at 5 Giltspur Street, London EC1A
9BD and a copy will be posted to all shareholders.


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