27th Nov 2019 09:16
(Alliance News) - Brewin Dolphin Holdings PLC on Wednesday reported a rise in funds over its financial year, pushed by strong inflows from its Discretionary funds.
At September 30, the asset manager's total funds under management stood at GBP45.0 billion, up 5.1% from GBP42.8 billion at the same point a year ago.
Brewin Dolphin's Direct Discretionary funds grew 4.8% to GBP26.3 billion, resulting in a 6.6% rise in total Discretionary funds to GBP40.1 billion.
"This year has seen economic uncertainty resulting in subdued client activity; however, the performance of the business has held up very well. We have delivered organic net discretionary funds growth of 3.7%, and we remain on track to meet our target to grow new discretionary funds organically by a third by the end of financial 2020," the asset manager said.
Brewin Dolphin saw GBP1.3 billion in net inflows with investment performance adding a further GBP600 million.
Direct Discretionary funds recorded GBP300 million in inflows with Indirect Discretionary funds adding GBP1.1 billion. Brewin Dolphin's Advisory funds recorded GBP400 million in outflows.
The "strong" inflows, the asset manager said, is proof the company has "continued to broaden".
The company's income rose by 3.1% in the twelve months to September 30 to GBP339.1 million from GBP329.0 million, but pretax profit slipped 8.6% to GBP62.6 million from GBP68.5 million.
This was after staff costs rose 8.2% to GBP126.7 million from GBP117.1 million. Total costs increased 5.3% year on year to GBP265.7 million. Brewin Dolphin said the increase can be attributed to planned "growth initiatives" and infrastructure projects.
"I am very pleased with our financial performance, particularly over the second half of the year. The group has continued to deliver strong and resilient organic growth, against the continued uncertain economic and political backdrop. This is demonstrated by the strength of our discretionary funds flows. Our strategy of focusing on our advice-led wealth management service continues to deliver results," said Chief Executive David Nicol.
He continued: "We continue to invest in our business to support future long-term growth. We have completed and integrated a number of strategic acquisitions and the replacement of our core custody and settlement system is on track. These initiatives are laying the foundations for long-term growth and will ensure that we are well placed to capture future market opportunities."
Brewin Dolphin is proposing a final dividend of 12.0 pence per share, giving a full year dividend of 16.4p - both flat on the year before.
"The progress we have made over the past year means we can look ahead with considerable optimism," Nicol added.
Shares in Brewin Dolphin were 0.8% lower in London on Wednesday at 339.20 pence each.
By Paul McGowan; [email protected]
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