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Brewin Dolphin Hldgs (BRW)

  Print          Annual reports

Wednesday 29 January, 2020

Brewin Dolphin Hldgs

Quarterly Trading Update

RNS Number : 2251B
Brewin Dolphin Holdings PLC
29 January 2020
 

29 January 2020

 

Brewin Dolphin Holdings PLC

("Brewin Dolphin" or the "Company" or the "Group")

Quarterly Trading Update

For the quarter ended 31 December 2019

 

Brewin Dolphin announces a trading update for the first quarter of its financial year ending 30 September 2020.

 

Q1 Highlights

 

·    Total funds increased by 7.8% to £48.5bn (FY 2019: £45.0bn) including £2.7bn of acquired funds from Investec Capital & Investments (Ireland) Limited ("ICIIL")1. Excluding acquired funds, total funds increased by 1.8%.

·    Discretionary funds increased by 4.2% to £41.8bn (FY 2019: £40.1bn), including £1.0bn of acquired funds, driven by strong investment performance and positive organic net inflows. Excluding acquired funds, discretionary funds grew by 1.7%.

o Discretionary net inflows, including transfers, were £0.1bn (annualised growth of 1.0%) and included a low-margin institutional account exit of £0.1bn. Excluding this, the annualised growth rate is 2.0%.

o MPS funds grew to £4.1bn (FY 2019: £3.8bn) with net flows of £0.2bn, an annualised growth rate of 21.1%.

·    Total quarterly income amounted to £89.6m (Q1 2019: £77.7m), an increase of 15.3%, including £4.0m (Q1 2019: £nil) as a result of recent acquisitions.

o Total discretionary income increased by 15.0% to £76.5m (Q1 2019: £66.5m) due to growth in funds and higher commission income from increased activity levels.

o Financial planning income grew 37.1% to £8.5m (Q1 2019: £6.2m), assisted by recent acquisitions and growth in 1762 from Brewin Dolphin.

 

David Nicol, Chief Executive said:

"I am pleased with our performance in the quarter, particularly our positive organic net inflows in challenging market conditions. We have diversified our business mix through building more client choice and client-centric propositions, which is supporting our growth. We remain on-track with the implementation of both our new client management system and core custody and settlement system. The integration of our acquisition in Ireland is progressing well and we remain confident about the long-term growth opportunities. Market sentiment appears to be improving and we look forward to capitalising on this as the year progresses." 

 

1 Completed on 01 November 2019.



Funds

 

Total funds by service category1

 

£bn

31 December

2018

30 September

2019

31 December

2019

Change

Last
12 months

Last
3 months

Direct discretionary

23.2

26.3

27.5

18.5%

4.6%

Intermediaries

8.8

10.0

10.2

15.9%

2.0%

MPS

2.9

3.8

4.1

41.4%

7.9%

Indirect discretionary

11.7

13.8

14.3

22.2%

3.6%

Total discretionary

34.9

40.1

41.8

19.8%

4.2%

Execution only

3.5

3.9

4.5

28.6%

15.4%

BPS

0.2

0.2

0.2

-

-

Advisory

0.9

0.8

2.0

122.2%

150.0%

Total funds

39.5

45.0

48.5

22.8%

7.8%

Indices






MSCI WMA Private Investor Balanced Index

1,484

1,665

1,679

13.1%

0.8%

FTSE 100

6,728

7,408

7,542

12.1%

1.8%

 

Funds flow by service category - detailed movement1 in the quarter

£bn

30 September 2019

Inflows

Outflows

Internal transfers

Net flows

Growth rate2

Acquired

Investment performance

31 December 2019

Direct discretionary

26.3

0.2

(0.2)

(0.1)

(0.1)

(1.5)%

1.0

0.3

27.5

Intermediaries

10.0

0.2

(0.2)

-

-

-%

-

0.2

10.2

MPS

3.8

0.2

-

-

0.2

21.1%

-

0.1

4.1

Indirect discretionary

13.8

0.4

(0.2)

-

0.2

5.8%

-

0.3

14.3

Total discretionary

40.1

0.6

(0.4)

(0.1)

0.1

1.0%

1.0

0.6

41.8

Execution only

3.9

-

-

0.1

0.1

10.3%

0.5

-

4.5

BPS

0.2

-

-

-

-

-%

-

-

0.2

Advisory

0.8

-

-

-

-

-%

1.2

-

2.0

Total funds

45.0

0.6

(0.4)

-

0.2

1.8%

2.7

0.6

48.5

 

1 The funds figures are rounded to one decimal place and therefore may not always cast.

2 Annualised.



 

Income

Quarter ended

31 December 2019

Quarter ended

31 December 2018

Change


Fees

Commission

Total

Fees

Commission

Total

Fees

Commission

Total

Direct discretionary

42.0

13.9

55.9

36.5

12.1

48.6

15.1%

14.9%

15.0%

Intermediaries

17.6

0.3

17.9

15.6

0.3

15.9

12.8%

-

12.6%

MPS

2.7

-

2.7

2.0

-

2.0

35.0%

-

35.0%

Indirect discretionary

20.3

0.3

20.6

17.6

0.3

17.9

15.3%

-

15.1%

Total discretionary

62.3

14.2

76.5

54.1

12.4

66.5

15.2%

14.5%

15.0%

Financial planning

n/a

n/a

8.5

n/a

n/a

6.2

n/a

n/a

37.1%

Execution only

1.1

1.6

2.7

1.1

1.5

2.6

-

6.7%

3.8%

BPS

0.3

-

0.3

0.3

-

0.3

-

-

-

Advisory

0.9

0.2

1.1

0.6

0.1

0.7

50.0%

100.0%

57.1%

Other income1

n/a

n/a

0.5

n/a

n/a

1.4

n/a

n/a

(64.3)%

Total income

n/a

n/a

89.6

n/a

n/a

77.7

n/a

n/a

15.3%

 

1 Q1 2020 other income includes the impact of the new client interest policy introduced in January 2019.

 

 

The Company's LEI number is 213800PS7FS5UYOWAC49

 

For further information:

Brewin Dolphin Holdings PLC


David Nicol, Chief Executive

Tel:+44 (0) 20 7248 4400

Siobhan Boylan, Chief Financial Officer

Tel:+44 (0) 20 7248 4400

Carla Bloom, Head of Investor Relations

Tel:+44 (0) 20 7248 4400



Camarco


Ben Woodford / Jane Glover

Tel:+44 (0) 20 3757 4990

 

Notes to Editors:

About Brewin Dolphin

Brewin Dolphin is one of the UK and Ireland's leading independent providers of discretionary wealth management.

 

We continue to focus on discretionary investment management, and we manage £41.8 billion of funds on a discretionary basis. In line with the premium we place on personal relationships, we have built a network of offices across the UK, Channel Islands and the Republic of Ireland, staffed by qualified investment managers and financial planners. We are committed to the most exacting standards of client service, with long-term thinking and absolute focus on our clients' needs at the core.


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