21 July 2022
Brewin Dolphin announces a trading update for the three months ended 30 June 2022.
Recommended offer
- On 31 March 2022, RBC Wealth Management (Jersey) Holdings Ltd1 announced a recommended cash acquisition of Brewin Dolphin Holdings PLC for 515p per share.
- On 23 May 2022, Brewin Dolphin shareholders approved the Scheme of Arrangement at the court meeting and passed the special resolution at the general meeting.
- Completion of the acquisition remains subject to regulatory approvals and is still on track to complete by the end of calendar Q3 2022.
Q3 financial highlights
- Gross discretionary inflows of £0.6bn (FY 2022 year to date £2.5bn, FY 2021 year to date £2.9bn), of which half are through our MPS/Voyager investment solutions.
- Total net flows of £0.1bn (annualised growth rate 0.7%). Q3 flows include £0.2bn of outflows in discretionary and execution only that relate to the exit of a low-margin charity client.
- Total funds decreased by 8.2% in the quarter to £51.7bn (Q2 2022: £56.3bn), with discretionary funds down 8.5% to £45.2bn (Q2 2022: £49.4bn). The decrease in funds in Q3 was a result of negative investment performance of £4.7bn, due to the ongoing volatile and weak market performance and macroeconomic environment. The MSCI WMA Private Investor Balanced Index fell by 7.4% during the quarter.
- Total income was £97.9m (Q3 2021: £103.8m), a decrease of 5.7% year on year, driven by lower market performance. Year to date total income was £307.4m, an increase of 1.2% year on year.
- Total discretionary income decreased by 6.1% to £80.5m (Q3 2021: £85.7m). Year to date total discretionary income decreased by 0.3% to £254.3m.
- Financial planning income grew 5.6% to £11.3m (Q3 2021: £10.7m), driven by demand for ongoing financial planning advice.
Update on the implementation of our custody and settlement system (‘Avaloq’)
We are in the final phase of the custody and settlement project and have completed two trial runs successfully and have commenced staff training on the new system. Our staff and technology are preparing for the final switch-over to the new system, which is to take place at the end of summer.
Robin Beer, Chief Executive said:
“While the recent market weakness has impacted our results in the third quarter, I am pleased that year to date we have achieved £2.5bn of gross discretionary inflows. The strength of our gross inflows demonstrates continuing demand for advice and our ability to capture new clients, especially during market uncertainty. We are in the final stage of switching over to our new custody and settlement system, which is to take place at the end of summer. We continue to see increased demand for our propositions and investment solutions, and we are well placed to capture the secular growth trends in the market.”
Notes:
1An indirect wholly-owned subsidiary of Royal Bank of Canada (“RBC”)
Click here to view the full trading update document