Brewin Dolphin lifts profit by a quarter, announces placing

Investment and financial planning firm Brewin Dolphin said profit for the six months to the end of March increased by a quarter as it announces a 40m pound share placing.

The FTSE 250 investment giant said adjusted pre-tax profit rose to 25.9% to £23.8m while total managed funds increased to £28.1bn at March 31st 2013 from £25.7bn the same time a year earlier.

Discretionary funds increased to £20.4bn from £17.3bn at the end of March 2012.

"We are now two years into the transformation and growth strategy announced in 2011," said Chief Executive, David Nicol.

He said: "We have made good progress against our stated objectives including delivering strong growth in funds under management. Our strategy has two main objectives: continued strong growth and increased efficiency."

However, when including adjustments for restructuring and redundancy costs, additional Financial Services Compensation Scheme (FSCS) levy, onerous lease provision and amortisation of client relationships, pre-tax profit fell by 44% to £6.9m. Basic earnings per share fell to 2.2p from 3.7p a year earlier.

The group, which announced its intention to raise up to around £40m via a placing, said the new capital will provide additional investment capacity.

Brewin Dolphin also underwent a recent overhaul of the board, including the departure of long-serving Executive Chairman Jamie Matheson, prompting takeover speculation.

The group has maintained an interim dividend of 3.55p per share.

Looking ahead, the company expects to see profits grow as it cuts down costs and improves efficiency following the restructuring.

"Improved equity market sentiment and early signs of a return in broader economic confidence are resulting in increasingly positive trading conditions," Nicol added.

CJ