Brewin Dolphin Holdings PLC, Group Preliminary Results for the year ended 30 September 2017

Financial Highlights¹

 

¹ Continuing operations.
² Core income is defined as income derived from discretionary investment management, financial planning, Brewin Portfolio Service (“BPS”) and execution only services.
³ See Financial Review for a reconciliation of adjusted profit before tax to statutory profit before tax and an explanation of adjusted performance measures.
⁴ See note 8.

Business Highlights

Delivering on the Growth Strategy:

 

Declaration of Final Dividend

The Board declares a final dividend of 10.75p per share. The final dividend is payable on 7 February 2018 to shareholders on the register at the close of business on 12 January 2018 with an ex-dividend date of 11 January 2018.

David Nicol, Chief Executive, said:

“2017 was a successful year for the business. Building on the focus and discipline of past years and supported by continued positive markets, we have delivered a strong financial performance underpinned by record fund growth. I’m particularly pleased to report above target organic discretionary fund growth demonstrating the progress we are making with our strategic initiatives.

The rate of change in our market environment is accelerating, driven by changing client needs, continued evolution of financial regulation and government policy. Against this backdrop, our advice-led proposition has enduring relevance for customers in uncertain and complex times. The firm has proven skills in innovation and delivering constructive change. Building on this momentum, I am certain that Brewin Dolphin is well positioned to deliver future growth.

“The 15% increase in our dividend underlines the Board’s confidence in the Company’s future prospects and ability to perform for both our clients and shareholders in the long-term.”

For further information:

Brewin Dolphin Holdings PLC
David Nicol, Chief Executive	Tel: +44 (0)20 7248 4400
Andrew Westenberger, Finance Director	Tel: +44 (0)20 7248 4400
FTI Consulting
David Waller / Edward Berry	Tel: +44 (0)20 3727 1651/1046

Download the full Group Preliminary Results press release in Adobe Acrobat PDF File Format. (Size: 889KB)

• Another strong period of organic fund inflows as we continue to deliver against our strategic plan.
• Total funds of £40.1bn, an increase of 13.3% (11.3% excluding acquired funds) (FY 2016: £35.4bn). Discretionary funds of £33.8bn, an increase of 17.4% or 15.3% excluding acquired funds (FY 2016: £28.8bn).
  • This compares to an increase of 6.9% in the FTSE 100 Index and a 6.0% increase in the MSCI WMA Private Investor Balanced Index.
  • Record net discretionary funds inflows, including transfers, of £2.3bn (FY 2016: £1.1bn) representing an annualised growth rate of 8.0% (FY 2016: 4.4%).
• Total income for the period of £304.5m (FY 2016: £282.4m).
  • Core² income of £291.0m increased by 10.5% (FY 2016: £263.3m).
  • Core fee income of £207.9m (FY 2016: £179.7m), increased by 15.7% representing 71.4% of total core income (FY 2016: 68.2%); core commission income of £62.3m (FY 2016: £66.1m).
  • Financial planning income of £20.8m (FY 2016: £17.5m).
• Adjusted³ profit before tax of £70.0m increased by 14.8% (FY 2016: £61.0m).
  • Improved adjusted³ profit before tax margin of 23.0% (FY 2016: 21.6%).
  • Achieved our target 25% adjusted profit before tax margin in 4^th quarter.
• Statutory profit before tax of £57.6m, 15.0% higher than FY 2016 (£50.1m).
  • Statutory profit before tax margin was 18.9% (FY 2016: 17.7%).
• Adjusted³ earnings per share:
  • Basic earnings per share increased by 15.8% to 20.5p (FY 2016: 17.7p).
  • Diluted earnings per share⁴ increased by 16.7% to 19.6p (FY 2016: 16.8p).
• Statutory earnings per share:
  • Basic earnings per share of 16.5p (FY 2016: 14.4p).
  • Diluted earnings per share of 16.0p (FY 2016: 13.9p).
• Full year dividend increase of 15.4% to 15.0p (2016:13.0p), final dividend of 10.75p per share (2016: 9.15p per share) an increase of 17.5%.
  • Strong funds growth, driven by positive net inflows and successful integration of Duncan Lawrie Asset Management Limited.
  • Well positioned in high-growth intermediaries led channel.
  • Operational efficiency targets achieved.
  • Beginning to add capacity, invest and innovate for further growth opportunities.
  • Balance sheet strength remains key underpin of growth strategy.