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Brewin Dolphin Hldgs (BRW)

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Wednesday 25 May, 2005

Brewin Dolphin Hldgs

Interim Results

Brewin Dolphin Holdings PLC
25 May 2005

                                                                     25 May 2005





                          BREWIN DOLPHIN HOLDINGS PLC

               INTERIM RESULTS FOR THE 26 WEEKS TO 25 MARCH 2005



                                   Highlights

•    Total income £68 million (2004: £59 million) an increase of 15%



•    Profit £12.4 million before tax and goodwill amortisation and exceptional 
     item (2004: £8.9 million) an increase of 39%.   Profit before tax
     £5.6 million (2004: £6.5 million)


•    Diluted earnings per share excluding goodwill amortisation and exceptional 
     item 4.2p (2004: 3.0p) an increase of 40%. Basic and diluted earnings per 
     share 1.7p (2004: 2.0p)


•    First interim dividend of 2.0p per share (2004: 1.5p) a 33% increase


•    £6 billion funds under discretionary management



Sir Fred Holliday, Chairman said:



'I am delighted to report to shareholders an increase of 39% in the profit
before tax, goodwill and an exceptional item for the first half of the current
year. We have now doubled the amount under discretionary management in five
years after adjusting for market movements and this has served to improve the
quality of our earnings.  Whilst the short term outlook is always difficult to
forecast, the second half of the year has started well. '





For further information



John Hall, Chief Executive
Brewin Dolphin 020 7248 4400



Toby Mountford/Anthony Kennaway
Citigate Dewe Rogerson 020 7638 9571







CHAIRMAN'S STATEMENT



It is with pleasure that I report to shareholders an increase of 39% in the
profit before tax, goodwill and an exceptional item for the first half of the
current year.  This has been achieved during a period of relatively stable
markets, which are a good background for the investment industry. The value of
the funds under our discretionary management has risen to £6bn. We have now
doubled the amount under discretionary management in five years after adjusting
for market movements. The results reflect the hard work that has been undertaken
over the past five years to improve the quality of your Company's earnings.



The first interim dividend of 2p per share (2004: 1.5p) was declared at our AGM
in February and paid on 6th April 2005.  As last year, the Board will consider
the payment of a second interim dividend in September 2005 which would be paid
towards the end of October 2005.



As announced in December 2004 we made an ex gratia contribution of £5m to the
fund that was established for the benefit of investors in certain Zero Dividend
Preference Shares of the split capital investment trusts. After deducting this
exceptional item and goodwill amortisation, the profit before tax was
£5.6million (2004 £6.5million).



An encouraging feature of the last few months has been the number of individual
investment managers and teams who have approached us, attracted by our
investment philosophy and the truly individual service we give our clients.  I
would like to welcome those new executives who have either just joined us or are
in the process of doing so, particularly those in Belfast, where we have
recently established a new branch, also teams in London, Birmingham and
Leicester.



It is with this positive record that I would like to inform you of my decision
to stand down as your Chairman from today in favour of my co-Director Jamie
Matheson (51) who will be Executive Chairman.  He currently heads our corporate
broking and institutional division, an area in which he will retain an active
involvement.  Jamie joined the company in 1996 and the Board in 2002.  He has
been in broking all his working life, is thoroughly imbued with the ethos of the
company and carries the unanimous support and confidence of the Board and all
his colleagues.  Jamie and his fellow Directors make a strong team.



For myself, I joined the company in the heady days of the dot-com boom and have
since seen many changes.  I took over the chairmanship following the market
crash and the trauma of 11th September 2001.  Your Company successfully
weathered that period and is in a strong financial position and I am delighted
that I am now able to pass over the Chairmanship with the Company in good heart.
  I will remain a Director until the end of the current financial year.



Whilst the short term outlook is always difficult to forecast, the second half
of the year has started well. Our discretionary portfolio management enables us
to look after clients requirements so much more efficiently whilst still
providing a highly personalised service. This together with the expansion of our
Wealth Management Service and the development of our financial planning arm,
will I am sure take the group from strength to strength.






INDEPENDENT REVIEW REPORT TO BREWIN DOLPHIN HOLDINGS PLC



Introduction

We have been instructed by the company to review the financial information for
the 26 weeks ended 25 March 2005, which comprises the consolidated profit and
loss account, the consolidated balance sheet, the consolidated cash flow
statement and related notes 1 to 6. 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 are 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 26 weeks ended
25 March 2005.





Deloitte & Touche LLP

Chartered Accountants

London



25 May 2005





Interim Consolidated Profit Statement

for the 26 weeks to 25 March 2005 (2004 26 weeks)

                                                         Notes   26 weeks       26 weeks           52 weeks
                                                                       to             to                 to
                                                                 25 March       26 March       24 September
                                                                     2005           2004               2004
                                                                   £000's         £000's             £000's

Turnover                                                           64,496         54,773            113,007
Other operating income                                              3,828          4,146              8,397
Total Income                                                 1     68,324         58,919            121,404

Staff costs                                                      (35,235)       (29,034)           (62,252)
Other operating costs                                            (29,525)       (24,593)           (50,984)
                                                                 (64,760)       (53,627)          (113,236)

OPERATING PROFIT                                                    3,564          5,292              8,168
Other interest receivable and similar income                        1,998          1,264              3,148
Interest payable and similar charges                                  (6)           (22)               (42)

PROFIT ON ORDINARY ACTIVITIES BEFORE GOODWILL
AMORTISATION AND EXCEPTIONAL ITEM                                  12,361          8,879             16,113


Exceptional item                                             2    (4,838)              -                  -
Goodwill amortisation                                             (1,967)        (2,345)            (4,839)
PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION                                                     5,556          6,534             11,274

Tax on profit on ordinary activities                              (2,210)        (2,588)            (4,510)

PROFIT ON ORDINARY ACTIVITIES
AFTER TAXATION                                               3      3,346          3,946              6,764
Dividends                                                    4    (3,927)        (2,932)            (6,843)

                                                                    (581)          1,014               (79)


EARNINGS PER SHARE

Basic                                                                1.7p           2.0p               3.5p
Diluted                                                              1.7p           2.0p               3.4p

Excluding goodwill amortisation and exceptional item
Basic                                                                4.3p           3.1p               5.7p
Diluted                                                              4.2p           3.0p               5.6p

                                                                    000's          000's              000's
Average number of shares in issue                                 196,027        193,292            194,418
Average number of shares in issue - fully diluted                 202,290        198,923            199,958







CONSOLIDATED BALANCE SHEET AS AT 25 MARCH 2005


                                                         Notes      as at          as at              as at
                                                                 25 March       26 March       24 September
                                                                     2005           2004               2004

                                                                   £000's         £000's             £000's

Fixed Assets
Intangible assets                                                  37,107         38,315             38,589
Tangible assets                                                     7,216          7,961              7,208
Investments                                                         7,500            431              7,500
                                                                   51,823         46,707             53,297

Current Assets
Investments                                                         1,057            263                298
Debtors                                                           295,377        201,891            200,374
Cash at bank and in hand                                           40,117         36,547             50,701
                                                                  336,551        238,701            251,373

Creditors: amounts falling due within one year                  (303,638)      (206,410)          (219,424)

Net Current Assets                                                 32,913         32,291             31,949

Total assets less current liabilities                              84,736         78,998             85,246

Provision for liabilities and charges                                   -        (2,355)                  -
                                                                                                         
Shareholders' funds                                       5        84,736         76,643             85,246






CONSOLIDATED CASH FLOW STATEMENT

FOR THE 26 WEEKS TO  25 MARCH 2005 (2004 26 WEEKS)
                                                                26 weeks        26 weeks           52 weeks
                                                                   to 25     to 26 March    to 24 September
                                                                   March
                                                                    2005            2004               2004
                                                                  £000's          £000's             £000's


Cash (outflow)/inflow from operating activities                  (4,086)          13,311             32,207
Return on investment and servicing of finance                      1,992           1,242              3,106
Taxation                                                         (3,040)         (1,286)            (4,402)
Capital expenditure                                              (2,205)         (1,127)            (2,600)
Acquisitions                                                       (707)           (298)              (445)
Equity dividends paid                                            (3,910)         (1,913)            (4,846)

CASH(OUTFLOW)/ INFLOW BEFORE THE MANAGEMENT
OF LIQUID RESOURCES AND FINANCING                               (11,956)           9,929             23,020
Financing                                                            137             941                949
(DECREASE)/INCREASE IN CASH IN THE PERIOD                       (11,819)          10,870             23,969


Notes to the cash flow statement

RECONCILIATION OF OPERATING PROFIT TO
  OPERATING CASH FLOW

Operating profit                                                   3,564           5,292              8,168
Depreciation and amortisation                                      4,320           4,561              9,281
Increase/(decrease) in provisions                                      -              80            (1,819)
Movement on other current assets                                (11,970)           3,378             16,577
Net cash (outflow)/inflow  from operating activities             (4,086)          13,311             32,207

ANALYSIS OF NET FUNDS
                                                                25 March                       24 September
                                                                    2005
                                                                               Cash flow               2004
                                                                  £000's          £000's             £000's

Group's cash                                                      28,634        (10,348)             38,982
Group's overdraft                                                (2,293)         (1,235)            (1,058)
Group's net funds                                                 26,341        (11,583)             37,924
Client settlement cash                                            11,483           (236)             11,719
Net funds                                                         37,824        (11,819)             49,643





Notes

1.Total income and operating profit before goodwill
amortisation and exceptional item
                                                                26 weeks        26 weeks           52 weeks
                                                                      to              to                 to
                                                                25 March        26 March       24 September
                                                                    2005            2004               2004
                                                                  £000's          £000's             £000's
Total income
Discretionary portfolio management                                29,641          24,514             52,593
Advisory  portfolio management                                    29,482          26,471             49,523
Stocktrade (execution only)                                        3,067           3,331              6,373
Corporate finance and institutional                                6,134           4,603             12,915
                                                                  68,324          58,919            121,404
Operating profit before goodwill amortisation and
exceptional item
Discretionary portfolio management                                 4,349           3,200              5,477
Advisory portfolio management                                      4,326           3,230              5,090
Stocktrade (execution only)                                          205             329                414
Corporate finance and institutional                                1,489             878              2,026
                                                                  10,369           7,637             13,007



2. Exceptional item - Split capital trusts

In December 2004 the Group made a £5m ex gratia contribution to a fund managed by Fund Distribution Limited, set up
under the auspices of the Financial Services Authority for certain investors who have lost money in certain Zero
Dividend Preference Shares. The charge for the period represents this payment, less recoveries, plus directly
attributable costs.



The Directors believe that, having carefully examined all claims received to date, no further provision for split
capital liabilities is required. If there prove to be further liabilities, the Directors believe that these will be
fully covered by insurance.



The Directors are currently in discussion with the Group's insurers in respect of claims for costs already incurred
and expensed regarding split capital trusts.  An estimate of the potential favourable financial effect is not given
as the Directors consider that any such disclosure would seriously prejudice their negotiations with insurers.


                                                                26 weeks        26 weeks           52 weeks
                                                                      to              to                 to
                                                                25 March        26 March       24 September
                                                                    2005            2004               2004
                                                                  £000's          £000's             £000's
3. Attributable earnings
Basic profit for the period and attributable earnings              3,346           3,946              6,764
Goodwill amortisation                                              1,967           2,345               4839
  less taxation                                                    (266)           (251)              (498)
Exceptional item                                                   4,838               -                  -
  less taxation                                                  (1,451)               -                  -
Adjusted attributable earnings                                     8,434           6,040             11,105



4. Dividend

First interim dividend, paid 6 April 2005, 2.0p per
share (2004:  1.5p).
                                                                   3,927           2,932               6843



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


Balance at 24 September 2004                                         810          84,436             85,246
Reduction in shares to be issued                                       -            (66)               (66)
Issue of shares                                                        -             137                137
Profit for the period                                              3,346               -              3,346
Dividend                                                         (3,927)               -            (3,927)
                                                                                       
Balance at 25 March 2005                                             229          84,507             84,736



6.  The interim accounts, which are unaudited, have been prepared on the basis of the accounting policies set out in
the Annual Report 2004. The figures shown for the full year ended 24 September 2004 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 at the Company's registered  office at 5 Giltspur Street, London EC1A 9BD and a
copy will be posted to all shareholders.





Funds                                                              at 25                   at 24
                                                                   March               September
                                                                    2005                    2004
                                                               £ Billion               £ Billion
In Group's nominee or sponsored member                               5.8                     5.2
stock not held in Group's nominee                                    0.2                     0.4
Discretionary funds under management                                 6.0                     5.6

In Group's nominee or sponsored member                               6.1                     5.8
stock not held in Group's nominee                                    3.1                     3.5
Advisory funds under management                                      9.2                     9.3

MANAGED FUNDS                                                       15.2                    14.9
stock not held in Group's nominee                                    2.0                     1.3
Advisory funds under management                                      0.3                     0.7
Execution only                                                       2.3                     2.0
Total                                                               17.5                    16.9



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