Brewin Dolphin Holdings PLC, Group Preliminary Results for the year ended 30 September 2020
News & comments25 November 2020
Strong results for the year in challenging markets; well positioned for the future
Financial highlights
- Strong total discretionary fund inflows of £2.8bn (FY 2019: £2.8bn), total discretionary net flows of £0.9bn (FY 2019: £1.4bn), representing an annualised growth rate of 2.2%.
- Total funds increased to £47.6bn (H1 2020: £41.4bn, FY 2019: £45.0bn), up 15.0% since 31 March 2020. Excluding funds from acquisitions of £2.7bn, total funds were broadly flat year on year. Total discretionary funds increased to £41.2bn (H1 2020: £35.7bn, FY 2019: £40.1bn) including funds from acquisitions and positive net flows more than offset by negative investment performance in challenging markets.
- Total income for the period increased by 6.6% to £361.4m (FY 2019: £339.1m) and includes £19.8m from recent acquisitions. Income was higher in the second half of the year due to higher commission and fee income due to higher market levels. Financial planning income grew 20.4% (up from 12.2% last year) to £33.1m.
- Profit before tax and adjusted1 items increased 4.3% to £78.2m (FY 2019: £75.0m).
- Statutory profit before tax of £62.1m, 0.8% lower than FY 2019 (£62.6m).
- Strong cash balance of £180.5m (FY 2019: £229.2m). Capital adequacy ratio of 220% at the year end.
- Adjusted1,2 earnings per share (‘EPS’):
- Diluted EPS broadly flat at 20.4p (FY 2019: 20.5p).
- Basic EPS broadly flat at 21.1p (FY 2019: 21.2p).
- Diluted EPS decreased by 4.2% to 15.9p (FY 2019: 16.6p).
- Basic EPS decreased by 4.1% to 16.3p (FY 2019: 17.0p).
Business progress
- Client management system implemented and starting to realise some of the client user experience and operational benefits.
- Swift integration of Investec Capital & Investments (Ireland) Limited: rebranded to Brewin Dolphin Capital & Investments (Ireland) Limited (‘BDCIIL’) and migration of clients and assets completed remotely in April 2020.
- Expanded and trialled a suite of client investment solutions through the further development of our 1762 from Brewin Dolphin proposition.
- New technology launched to enhance user-experience for WealthPilot clients.
- Continued to improve our clients digital experience through the enhancement of the MyBrewin portal.
Outlook and guidance for FY 2021
- Market conditions remain challenging against economic and social headwinds. However, we are well placed to capture the momentum once markets rebound, as clients rely on us for our valued advice services.
- On track to implement the new custody and settlement system during Autumn 2021.
- FY 2021 operating costs to grow mid-single digit.
Notes:
1. Adjusted items are amortisation of client relationships and brand, defined benefit pension scheme past service costs, acquisition costs, incentivisation awards, onerous contracts and other gains and losses.
2. See the note 9 to the Financial Statements.
Robin Beer, Chief Executive, said:
“Our objective is to help people build financially sustainable futures whilst achieving peace of mind. This could not have been more welcomed by our clients in a year which saw markets fall during the initial peak of the COVID-19 pandemic. Whilst markets have recovered from those levels, continued volatility remains a likelihood until the pandemic is under control. What is evident is that we could not have achieved our success this year without our values-based decision making and our client-centric culture. Adapting quickly to remote working enabled us to continue to deliver against our strategic objectives and delivered a set of resilient results.
Looking ahead to FY 2021, we’re prioritising our digital agenda, so we can innovate and explore ways to improve client and advisor user experiences. Our focus will also be to implement our new custody and settlement system, which will enable us to realise both operational and technology benefits. Our sector continues to have structural growth dynamics and we intend to benefit from these by enhancing our distribution capability both through our direct and indirect channels. These priorities will enable us to maintain relevance through both our propositions and user experience, become more efficient through improved processes and ensure we are well placed to capture growth opportunities in challenging markets.”
LEI: 213800PS7FS5UYOWAC49
Declaration of Final Dividend
The Board is proposing a final dividend of 9.9p per share, to be approved at the 2021 AGM and to be paid on 10 February 2021 to shareholders on the register at the close of business on 8 January 2021 with an ex-dividend date of 7 January 2021.
For further information:
Brewin Dolphin Holdings PLC
Carla Bloom, Head of Investor Relations
Tel: +44 (0)20 7248 4400
Camarco
Ben Woodford / Geoffrey Pelham-Lane
Tel: +44 (0) 799 065 3341
The year end results and strategy update presentation will be held at 9.00am on 25 November 2020 and available to watch via a video webcast. The audio link can be found on the corporate website (www.brewin.co.uk/group/investor-relations). Investors and analysts are also able to dial in to the call using +44 (0) 20 3003 2666.
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 £41.2 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.