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Brewin Dolphin Hldgs (BRW)

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Thursday 01 December, 2005

Brewin Dolphin Hldgs

Preliminary Results

Brewin Dolphin Holdings PLC
01 December 2005


1 December 2005
                            The Brewin Dolphin Group
                              Preliminary Results

     
•    Total income £145 million (2004 : £121 million)

•    Discretionary funds were £6.9 billion at 30 September 2005 (2004 : £5.6
     billion)

•    Profit before tax, exceptional item and goodwill amortisation £24.7
     million (2004 : £16.1 million)

•    Profit before tax £13.0 million (2004 : £11.3 million)

•    Diluted earnings per share before exceptional item and goodwill 
     amortisation 8.3p (2004 : 5.6p). Basic earnings per share before 
     exceptional item and goodwill amortisation 8.7p (2004 : 5.7p). Diluted 
     earnings per share after exceptional item and goodwill amortisation 3.9p 
     (2004 : 3.4p). Basic earnings per share 4.1p (2004 : 3.5p)

•    Total dividend 4.5p (2004 : 3.5p) per share

'The year has started well and providing markets remain at current levels or
continue to advance steadily, as we are presently forecasting, then we can
expect good progress from your Group over the coming year.'

John Hall  - Chief Executive


For further information

Jamie Matheson, Executive Chairman
Brewin Dolphin 020 7248 4400

John Hall, Chief Executive
Brewin Dolphin 020 7248 4400

Toby Mountford/Anthony Kennaway
Citigate Dewe Rogerson 020 7638 9571


CHAIRMAN'S STATEMENT

It is my great privilege and pleasure to be writing my first annual statement as
your Chairman.  I became Chairman at the end of May two-thirds of the way
through our year and succeeded Sir Fred Holliday to whom I would like to pay
particular thanks for his sterling work.  He held office during an important
period in our Company's history and his reasoned and thoughtful execution of his
duties was invaluable.  I wish Sir Fred a happy and well deserved retirement.

The year under review has seen our Group return a robust performance in terms of
both revenue and profits growth.  This has been achieved across our two main
income streams of Private Client Investment Management and Corporate Broking.
There have been a number of significant developments during the year including
the opening of our office in Belfast in February 2005.  This marks our first
venture in Ireland and the progress made to date is most satisfactory.  We were
also very pleased to have added Corporate Broking services to our office in
Birmingham.  In addition we have recruited five new teams to other locations
throughout the Group.

A major part of our strength is  our extensive branch network and our emphasis
that clients have both freedom of choice and the ability to communicate directly
with the individual manager who looks after them.

Since becoming your Chairman I have visited each one of our 34 branches and
three operational centres and without exception I have seen the dedication and
team spirit that prevails throughout.  This is, of course, of enormous
importance as our people are our most valuable asset without whom we would not
be able to look after our clients and the interests of our Shareholders.

We operate in an environment where the impact of regulation is significant both
in terms of costs and management time.  Your Group remains committed to the
attainment of the highest standards of business practice and is very conscious
of the need to meet, if not exceed, the requirements of the Financial Services
Authority.  At the same time we share the widely held view that regulation must
be constructed and executed in a manner that is sensible, practical and
relevant.  To this end we are committed to working closely with the Regulator
and Government at various levels.

We operate in a market place that is sensitive to events that may take place
across the globe.  Against that background it is not easy or appropriate to make
short-term predictions about our markets but it remains very much your Company's
objective to achieve steady growth and returns for Shareholders.

What has been achieved in the year under review is due to the exceptional hard
work of my colleagues all around the Group and the continued loyalty of our
clients to whom I must express sincere thanks.  Since the year end we have
welcomed Simon Miller as a Non-Executive Director of the Company, his
considerable City experience will be invaluable to the Board. He, John Hall, our
Chief Executive, with whom I am working very closely in the transitionary period
prior to his retirement, Robin Bayford our Finance Director and Vikram Lall who
has given many successful years to our corporate finance side, will be standing
for election or re-election at the 28 February 2006 Annual General Meeting.  I
commend their many and varied talents to you.

Your company is firmly committed to pursuing the achievement of another good
performance for the year ahead.


Jamie Matheson
30 November 2005


Chief Executive's Report

It is always a pleasure to report on a good set of figures and that is certainly
the case for the Group for the year ended 30 September 2005.  The market
background against which we have been operating during those twelve months has
been relatively benign although it did not always appear that this would be the
case.

For the year ended 30 September 2005 your Group's profits before tax, before an
exceptional item covered later in this report, and before goodwill amortisation,
amounted to £24.7m against £16.1m in 2004 an increase of 53%.   Fully diluted
earnings per share calculated on the same basis were 8.3p against 5.6p in 2004,
an increase of 48%, whilst basic earnings per share, again before an exceptional
item and goodwill amortisation, were 8.7p against 5.7p, an increase of 53%.
Basic earnings were 4.1p per share against 3.5p per share after taking into
account the exceptional item and goodwill amortisation, still an increase of
17%.

We have continued our past practice of paying dividends in April and October.
On 27 September 2005 we announced a second interim dividend of 2.5p (2004: 2p)
making a total of 4.5p against 3.5p in 2004, an increase of 29%.  We propose
announcing the first interim payment for 2006 at our AGM on Tuesday 28 February
2006.

When the full Statutory Accounts are published it will be seen we have
anticipated the requirement to prepare consolidated financial statements under
the new International Financial Reporting Standards and prepared a report
showing the effect of these on our 2005 Results and Balance Sheet. These
Standards may change; however, applying these in their current state, there
would be no change to earnings per share before goodwill amortisation and an
increase in unadjusted earnings per share due to the removal of goodwill
amortisation. The restated Balance Sheet will show a reduction in net assets,
from £89 million to £77 million, this is primarily due to the recognition of
pension liabilities. For regulatory purposes, the effect on our capital will not
be significant.

The exceptional item referred to above includes the £5m contribution made to
Fund Distribution Limited for the benefit of those who lost money in Zero
Dividend Investment Trust shares.   The exceptional charge has been taken to the
profit and loss account, plus other directly attributable costs, less recoveries
to date.   We do not believe that any further provision for Split Capital
liabilities is required.


Investment Management

                                                   2005             2005         2004             2004
                                           Total Income Operating Profit Total Income Operating Profit
                                                 £000's           £000's       £000's           £000's

Discretionary portfolio management               69,165            9,541       52,593            5,477
Advisory portfolio management                    61,243            7,741       55,896            5,376

                                                130,408                       108,489

Operating profit before taxation, goodwill
amortisation  and exceptional  item                               17,282                        10,853


The value of discretionary funds under management on 30 September 2005 had risen
to £6.9bn compared with a figure of £5.6bn a year earlier, an increase of 23%.
We are particularly pleased with this increase, as can be seen from the figures
above; discretionary fund management is the most profitable part of our
business.   Putting a single aggregate transaction through the market and the
office is far more efficient, and there is no doubt that being able to react to
market situations quickly enables us to obtain a better overall return for our
discretionary clients and we continue to recommend this service to our clients.

Advisory fund management, however, continues to be a very important area for us
and the value of funds under advisory management in our nominee or sponsored
member account has risen to £6.7bn compared to £5.8bn a year ago.  Many trusts
and other long established clients make use of this service. In addition a
number of our new clients take it as a starting point and clients pay a basic
annual fee.

Stocktrade has enjoyed another successful year. The strategy to concentrate on
alliances and corporate clients has again proved its worth with the number of
companies, to which we provide dealing services, rising above 120 with 37 of
those currently in the FTSE 100.  We are also well positioned to take advantage
of the increase in activity within SIPPs, providing execution only dealing
services to the leading SIPP Administrators.

We had anticipated that the PEP/ISA business could come under pressure as a
result of the reduction in the tax advantages which it enjoys, but we are
pleased to report that withdrawals have been more than offset by new business
transferred in. The fee income has risen to reflect the increase in the general
level of the market.

Over the past twelve months we have strengthened our Financial Planning Division
to enable us to provide the broadest range of financial advice covering not just
investment but also financial planning, inheritance tax planning, school fee
schemes and pensions advice.  Last year we recruited a further eight financial
consultants and we now have thirty-eight fully qualified consultants who are
based in twelve offices around the country.  From there they can easily visit
our other branches and arrange meetings with clients wherever they are based.
We plan to develop this aspect of our coverage in the coming year.

We opened a branch in Belfast at the end of February 2005.  It is trading under
the name of Bell Lawrie reflecting the close links between Northern Ireland and
our Scottish offices.  I am pleased to report that it has made a very good start
building a significant client base, we have seven investment advisers in the
branch and we expect it to be a significant contributor to Group profits in
future years.

In London we have welcomed a number of new investment advisers and also a direct
marketing team which specialises in pensions advice, particularly important with
the approach of 'A' day next April. The latter manage portfolios in conjunction
with our well established and successful model portfolio, or alternatively with
one of our investment managers on our usual bespoke lines.


Corporate  Broking
                                                      2005           2005           2004             2004
                                              Total Income      Operating   Total Income        Operating
                                                                   Profit                          Profit
                                                    £000's         £000's         £000's           £000's

                                                    14,252                        12,915
Operating profit before taxation, goodwill
amortisation  and exceptional  item                                 2,840                           2,026

Revenues in our Corporate Broking Divisions overall rose by 10% and there was a
gratifying improvement in margins.  The year made a quiet start but momentum
gathered pace significantly in the second half and is continuing.

During the year we opened a new Corporate Finance branch in Birmingham which has
made an encouraging start.  Additional investment has been made in improving
systems and in recruiting new staff.  We have continued to gain market share
through the acquisition of new corporate clients.


Conclusion

I cannot conclude without thanking all our staff for their immense effort in
achieving this excellent set of figures as well as our clients for their
continued loyal support.  The year has started well and providing markets remain
at current levels or continue to advance steadily, as we are presently
forecasting, then we can expect good progress from your Group over the coming
year.





John Hall

30 November 2005



CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE 53 WEEKS TO 30 SEPTEMBER 2005 (52 WEEKS TO 24 SEPTEMBER 2004)

                                                Note         2005         2004
                                                         53 Weeks     52 Weeks
                                                       Continuing   Continuing
                                                       operations   Operations
                                                            Total        Total
                                                           £000's       £000's

Turnover                                                  136,563      113,007
Other operating income                                      8,097        8,397

TOTAL INCOME                                       2      144,660      121,404

Staff costs                                               (78,470)     (62,252)
Other operating costs                                     (57,741)     (51,112)

                                                         (136,211)    (113,364)

OPERATING PROFIT                                            8,449        8,040
Dividend receivable                                           221          128
Other interest receivable and similar income                4,334        3,148
Interest payable and similar charges                          (15)         (42)

Profit on ordinary activities before
goodwill amortisation and exceptional item         2       24,662       16,113
Exceptional item                                   1       (6,831)           -
Goodwill amortisation                                      (4,842)      (4,839)

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION      2       12,989       11,274

Tax on profit on ordinary activities               3       (4,938)      (4,510)

PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION                8,051        6,764

Equity dividends                                   4       (8,841)      (6,843)
                                                             (790)         (79)

EARNINGS PER SHARE
Basic                                              5          4.1p         3.5p
Diluted                                            5          3.9p         3.4p

Excluding goodwill amortisation and exceptional
item
Basic                                              5          8.7p         5.7p
Diluted                                            5          8.3p         5.6p




CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

FOR THE 53 WEEKS TO 30 SEPTEMBER 2005 (52 WEEKS TO 24 SEPTEMBER 2004)

                                                      2005       2004
                                                  53 weeks   52 weeks
                                                    £000's     £000's

Profit on ordinary activities after taxation         8,051      6,764
Revaluation of investments                           1,144      7,069

Total recognised gains and losses for the period     9,195     13,833



CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2005 (24 SEPTEMBER 2004)
                                                                                                                        
                                                     2005              2004
                                              £000's   £000's     £000's  £000's
FIXED ASSETS
Intangible assets                                  38,782             38,589
Tangible assets                                     9,168              7,208
Investments                                         8,954              7,500

                                                   56,904             53,297
CURRENT ASSETS
Investments                                         1,227                298
Debtors                                           234,781            200,374
Cash                                               50,392             50,701

                                                  286,400            251,373
CREDITORS: amounts
falling due within                               (253,943)          (219,424)
one year

NET CURRENT ASSETS                                 32,457             31,949

TOTAL ASSETS LESS CURRENT LIABILITIES              89,361             85,246

CAPITAL AND RESERVES
Called up share capital                             1,965              1,955
Shares to be issued including premium               6,000              3,400
Share premium account                              79,287             79,081
Revaluation reserve                                 8,213              7,069
Merger reserve                                      4,562              3,929
Profit and loss account                           (10,666)           (10,188)

EQUITY SHAREHOLDERS' FUNDS (note 6)                89,361             85,246


CONSOLIDATED CASH FLOW STATEMENT
FOR THE 53 WEEKS TO 30 SEPTEMBER 2005 (52 WEEKS TO 24 SEPTEMBER 2004)

                                                                  2005                       2004
                                                              53 weeks                   52 weeks
                                                                £000's                     £000's

Net cash inflow from operating activities (see below)           17,866                     32,079
Return on investments and servicing of finance                   4,540                      3,234
Taxation                                                        (6,110)                    (4,402)
Capital expenditure                                             (6,291)                    (2,600)
Acquisitions                                                    (1,483)                      (445)
Purchase of fixed asset investments                               (310)                       -
Equity dividends paid                                           (7,837)                    (4,846)

INFLOW BEFORE FINANCING                                            375                     23,020
Financing (see below)                                              210                        949

INCREASE IN CASH IN THE PERIOD                                     585                     23,969

NOTES TO THE CASH FLOW STATEMENT

RECONCILIATION OF OPERATING  PROFIT
         TO OPERATING CASH FLOW
         Operating profit                                        8,449                      8,040
         Depreciation and amortisation                           9,154                      9,281
         (Increase)/decrease in current asset                     (929)                        76
         investments
         Increase in debtors                                   (33,827)                   (47,451)
         Increase in creditors                                  35,019                     63,952
         Decrease in provisions                                      -                     (1,819)

Net cash inflow from operating activities                       17,866                     32,079

Financing
     Issue of shares for cash                                      210                        949

                                                                   210                        949



RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

Increase in cash in the period                                         585                      23,969
Net funds at start of period                                        49,643                      25,674

Net funds at end of period                                          50,228                      49,643

ANALYSIS OF NET FUNDS
                                                                      2005        Cash flow       2004
                                                                    £000's           £000's     £000's

Firm's cash                                                         38,168            (814)     38,982
Firm's overdraft                                                     (164)              894    (1,058)
Firm's net cash                                                     38,004               80     37,924
Client settlement cash                                              12,224              505     11,719
Net funds                                                           50,228              585     49,643



NOTES


1. EXCEPTIONAL ITEM - SPLIT CAPITAL TRUSTS


In December 2004 the Group made a £5m contribution to a fund (Fund Distribution
Limited) set up under the auspices of the Financial Services Authority for those
who have lost money in Zero Dividend Shares. The charge for the period, included
within other operating costs and staff costs, represents this payment, less
recoveries to date, plus other directly attributable costs.

The Directors believe that, having carefully examined all claims received to
date, no further provision for split capital liabilities is required; they also
consider that further liabilities, if any, are fully covered by insurance.

The Directors remain 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 further potential favourable financial effect is not given as
the Directors consider that any such disclosure would seriously prejudice their
ongoing negotiations with insurers.


2. TOTAL INCOME AND PROFIT BEFORE TAX                               2005                        2004
                                                                53 weeks                    52 weeks

                                                    Total  Profit before        Total  Profit before
                                                   income       taxation       income       taxation
                                                   £000's         £000's       £000's         £000's
Private client investment management
    Discretionary portfolio management             69,165          9,541       52,593          5,477
    Advisory portfolio management                  61,243          7,741       55,896          5,376

                                                  130,408         17,282      108,489         10,853
Corporate broking                                  14,252          2,840       12,915          2,026
OPERATING PROFIT before goodwill amortisation
and exceptional item
                                                                  20,122                      12,879
Interest and investment income (net)                               4,540                       3,234
PROFIT before tax, goodwill amortisation and
exceptional item
                                                                  24,662                      16,113
Exceptional item (note 1)                                         (6,831)                         -
Goodwill amortisation                                             (4,842)                     (4,839)
                                                  144,660         12,989      121,404         11,274


 3. TAX ON PROFIT ON ORDINARY ACTIVITIES

                                                           2005                   2004
                                                       53 weeks               52 weeks

                                                         £000's                 £000's
United Kingdom corporation tax based on
the taxable profit for the period at 30%
(2004 30%)
                  Current                                 5,374                  5,161
                  Prior year                                 17                    563
              Overseas tax
                  Current                                   127                    119

                                                          5,518                  5,843
                  Deferred - UK only                       (454)                  (603)
                  Prior year deferred -                    (126)                  (730)
                  UK only                                 
                                                          4,938                  4,510

The current tax charge for the period
exceeds 30% (2004 30%) for the following
reasons: -

Tax on ordinary activities at the
standard rate 30% (2003 30%)
                                                          3,897                  3,382
Goodwill amortisation - disallowed                          783                    943
proportion
Leasehold property depreciation                             141                    116
Deferred tax timing differences                             454                    603
Prior year tax                                               17                    563
Disallowable expenses and other timing
differences                                                 226                    236

                                                          5,518                  5,843

4. DIVIDENDS

First interim dividend paid on 6 April 2005 of 2.0p
per share  (2004 1.5p per share)                          3,927                  2,933
Second interim dividend paid on 25 October 2005 of
2.5p per share  (2004 2.0p per share)                     4,914                  3,910

                                                          8,841                  6,843

5.  EARNINGS PER SHARE
                                                             No                     No
                                                          000's                  000's
Basic
Weighted average number of shares in issue in the       196,227                194,418
period
Diluted
Weighted average number of options outstanding for        3,070                  1,580
the period
Estimated weighted average number of shares earned
under deferred consideration arrangements                 5,421                  3,960

Diluted weighted average number of
shares in issue in the period                           204,718                199,958


                                                           2005                   2004
                                                       53 weeks               52 weeks

                                                         £000's                 £000's
Basic profit for the period and
attributable earnings
                                                          8,051                  6,764
Exceptional item                                          6,831
                                                                                 -
     Less tax on exceptional item                        (2,049)
                                                                                 -
Goodwill amortisation                                     4,842                  4,839
     less tax on goodwill amortisation                     (670)                  (498)
Adjusted basic profit for the period and                 17,005                 11,105
attributable earnings

6. RECONCILIATION OF MOVEMENTS IN
SHAREHOLDERS' FUNDS
                                                         £000's                 £000's
At start of period                                       85,246                 74,380
Issue of shares in period                                   149                    888
Estimated movement in
 value of shares to be issued
                                                          3,300                  2,400
Goodwill  previously written off                            312                    588
Revaluation of fixed asset investment                     1,144                  7,069
Profit for the period                                     8,051                  6,764
Dividends                                               (8,841)                (6,843)

At end of period                                         89,361                 85,246



7. The accounting policies used in arriving at the preliminary figures are
consistent with those, which will be published, in the full Financial
Statements. There are no changes in accounting policies from those used in 2004.


8. The financial information in this press release does not constitute statutory
accounts within the meaning of section 240 of the Companies Act 1985, but is
derived from those accounts. Statutory accounts for 2004 have been delivered to
the Register of Companies, and those for 2005 will be delivered following the
Company's Annual General Meeting. The Auditors have reported on those accounts;
their reports were unqualified and did not contain statements under section 237
(2) or (3) of the Companies Act 1985.


9. The Annual General meeting will be held at 12 noon on 28 February 2006 at
Merchant Taylors' Hall, 30 Threadneedle Street, London EC2R 8JB.



FUNDS AT 30 SEPTEMBER 2005 (24 SEPTEMBER 2004)
                                                                                  2005                   2004
                                                                   £ Billion £ Billion    £ Billion £ Billion

In Group's nominee or sponsored member                                             6.5                    5.2
Stock not held in Group's nominee                                                  0.4                    0.4
DISCRETIONARY FUNDS UNDER MANAGEMENT                                               6.9                    5.6

ADVISORY FUNDS UNDER MANAGEMENT
In Group's nominee or sponsored member                                   6.7                    5.8
Other funds where valuations are carried out but where the stock
is not under the Group's control                                         3.3      10.0          3.5       9.3

MANAGED FUNDS                                                                     16.9                   14.9

EXECUTION ONLY STOCK
In Group's nominee or sponsored member                                             2.0                    1.3
Stock not held in Group's nominee                                                  0.3                    0.7
                                                                                  19.2                   16.9





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