Advertisement

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.

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.

Advertisement - Article continues below

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

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
What gold, bonds and tech stocks have in common
Stockmarkets

What gold, bonds and tech stocks have in common

"Risk off" or "safe haven" assets such as gold and government bonds have been doing well lately. But so have riskier tech stocks. That seems to defy c…
10 Jul 2020
House price crash: UK property prices are falling – so where next?
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020