24th Nov 2021 09:33
(Alliance News) - Brewin Dolphin Holdings PLC said Wednesday strong total discretionary net flows, buoyed by new Voyager funds, led to growth in funds under management, while a sharp rise in income prompted a dividend hike.
Shares in the asset manager were down 5.5% in London on Wednesday morning at 355.00 pence each. The shares are up 16% in 2021 so far, however.
Brewin ended September 30 with GBP56.9 billion in total funds under management, up 20% from the same point a year before at GBP47.6 billion.
Net inflows in the year totalled GBP2.1 billion, with Brewin's investment performance adding GBP7.1 billion to total funds.
Brewin noted all of its funds recorded net inflows, with GBP1.9 billion coming from total Discretionary funds, highlighted by GBP1.0 billion from its multi-asset Voyager funds - which were launched in October 2020.
Chief Executive Robin Beer said: "We have had an exceptional year achieving record discretionary inflows and are delivering on our growth ambitions. We have remained relevant by continuing to innovate our propositions whilst also developing our digital capabilities. We have started to drive operational efficiencies through our client management system and our new custody and settlement system is now live."
Brewin is declaring a final dividend of 11.1 pence, up 12% from 9.9p a year before, taking its total for the year to 15.7p, up 9.8% from 14.3p total the year before.
In the financial year that ended September 30, pretax profit increased 17% to GBP72.5 million from GBP62.1 million. Income rose 12% to GBP405.9 million from GBP361.4 million.
Beer added: "Looking ahead to financial 2022, our priority is to complete the final phased rollout of functionality for our new custody and settlement system, which will complete in summer 2022. On completion, with our new technology capabilities coupled with the operational excellence programme, we expect to capture significant synergies and benefits across the business, supporting our vision to deliver double digit earnings per share growth by 2025."
Brewin warned that operating costs in financial 2022 will rise by a mid- to high-single-digit percentage, due to wage increases and the one-time cost of running systems in parallel.
By Paul McGowan; [email protected]
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