Information  X 
Enter a valid email address

Brewin Dolphin Hldgs (BRW)

  Print          Annual reports

Thursday 01 October, 2009

Brewin Dolphin Hldgs

Trading Update and Accounting

RNS Number : 0105A
Brewin Dolphin Holdings PLC
01 October 2009
 



   



01 October 2009


Brewin Dolphin Holdings PLC (the 'Company')


Pre Closing Trading Update and Accounting Policy Change


Trading Update


Following the completion of the financial year to 27 September 2009, the Company is issuing the following trading update. Performance in the last quarter has been strong and results for the year will be at the top end of the Board's expectations.


Change in Accounting Policy


After a long and constructive dialogue with the Financial Reporting Review Panel, we have considered the additional clarification which the forthcoming standard, IFRS 3 (2008) brings to the recognition of intangible assets and the various practices currently applied by firms in the purchase of investment management businesses. We have therefore retrospectively changed our accounting policy adopted in 2005, so that payments to acquire teams of investment managers, bringing with them funds under management, have been re-classified as the intangible asset, 'client relationships', rather than goodwill. 


The main changes are as follows:-


2008


2007


 Previously reported

 

As restated 


 Previously reported 

 As 

restated 


 £'000 

 £'000 


 £'000 

 £'000 







Profit before tax and amortisation

 36,202 

 36,202 


 41,656 

 41,656 

Amortisation of intangible assets

 - 

(4,244)


 - 

 (1,774)

Profit before tax

 36,202 

 31,958 


 41,656 

 39,882 

Taxation

 (11,127)

(9,939)


 (12,708)

 (12,211)

Profit after taxation

 25,075 

 22,019 


 28,948 

 27,671 







Fully diluted earning per share pre amortisation


 11.7p 

 

11.7p 


 

13.8p 


 13.8p 







Fully diluted earning per share post amortisation

 


 10.3p 



 - 

 

13.2p 














2008


2007


 Previously reported

 

 As restated 


 Previously reported 

 As 

restated 


 £'m

 

 £'m 


 £'m 

 £'m 

Net assets

 125.2 

 119.9 


 115.3 

 113.1 







Intangible assets






Goodwill

 93.0 

 48.4 


 65.8 

 47.8 

Client relationships

 - 

 37.3 


 - 

 14.9 


 93.0 

 85.7 


 65.8 

 62.7 





Amortisation of client relationships in our 2009 accounts is expected to be in the region of £6.5m.  



Value of 'Client Relationships'


We spent £24.3m in 2008 on client relationshipsWe are happy to report that funds under management acquired in relation to these acquisitions amounted to £2.2bn as at 28 August 2009; £24.3m represents a cost of funds of 1.1%.




For further information please contact:  

  

 

Jamie Matheson

Andrew Hayes/Wendy Baker

Executive Chairman  

Hudson Sandler

Brewin Dolphin  

020 7796 4133

020 7248 4400



  


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
MSCSDIFMSSUSELU

a d v e r t i s e m e n t