10th May 2019 07:30
LONDON (Alliance News) - Brewing Dolphin Holdings PLC is to carry out a fundraising following a series of acquisitions, it said Friday, including a new one in Ireland.
Wealth manager Brewin has bought the Irish wealth management unit of Investec PLC for around EUR44 million.
The firm, which confirmed mid-April it was in talks with Investec, said this builds on its plan to expand Irish operations, creating a "top three" wealth management business in the republic.
The Investec business has offices in Dublin and Cork, with funds under management of EUR2.9 billion as of the end of March.
"This acquisition, which is consistent with our strategy of growth in assets under management, provides us with an exciting opportunity to strengthen substantially our existing presence in the Republic of Ireland, one of Europe's fastest growing economies," said Brewin Chief Executive David Nicol.
"We will also be in a stronger position to benefit from the country's growing demand for discretionary and advice-led services, supported by favourable demographics, with the country having the youngest population in Europe," he continued.
"Our businesses are highly compatible in terms of culture, values, investment philosophy and client-centric approach, which combined with our established platform, will enable us to meet more effectively the growing demand for wealth management services in both the UK and the Republic of Ireland."
Following the Investec deal and a number of others, Brewin plans raise approximately GBP60 million at a price of 305 pence a share. Liberum Capital Ltd and RBC Europe Ltd are acting as joint bookrunners for the placing.
Over the last 12 months, Brewin has invested GBP70 million in new businesses as well as some internal new businesses, it noted.
The placing, it said, will allow it to "maintain a strong regulatory capital level", giving it the financial flexibility needed for further development.
The 305p placing price is a 5.0% discount to Brewin's closing price of 321p on Thursday in London.
The acquisition and placing have been announced alongside Brewin's interim figures for the six months to March, a "strong" period for Brewin.
Total funds at period-end were GBP42.4 billion, up from GBP39.7 billion year-on-year though slightly lower from the GBP42.8 million figure at the end of September last year.
Brewin's total income was 0.3% higher at GBP162.3 million, which the company said was mainly due to "largely flat" average funds over the six months.
Adjusted pretax profit fell 8.2% to GBP35.6 million, with the statutory figure declining 13% to GBP29.7 million.
Discretionary funds were GBP37.5 billion, down slightly year-on-year, with new flows offset by investment performance, Brewin said. Net fund flows were GBP800 million, rising GBP200 million year-on-year.
Brewin has held its interim return to shareholders flat at 4.4p per share.
"In the first half of 2019, the group has continued to deliver strong and resilient organic growth, even with the backdrop of volatile market conditions. This is demonstrated by the strength of our discretionary funds flows," said CEO Nicol.
"Our strategy of focusing on our advice-led wealth management service in the direct market continues to deliver results."
"We are investing in our business to support future long-term growth. Over the past few months, we have announced the replacement of our core custody and settlement system and a number of acquisitions. These initiatives are laying the foundations for long-term growth and will ensure that we are well placed to capture market opportunities," he added.
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