Group Preliminary Results

2nd Dec 2009 07:00

 



2 December 2009

Brewin Dolphin Holdings PLC

Group Preliminary Results

For the 52 weeks ended 27 September 2009

Highlights

	Total income £212.3 million (2008: £206.5 million).
	Discretionary funds £11.8 billion at 27 September 2009 (2008: £10.2 billion), an increase of 15.7% which compares to a fall of 0.1% in the FTSE 100 Share Index.
	Profit excluding amortisation of intangible asset - client relationships and redundancy costs and before tax £32.1 million (2008: £36.8 million).
	Profit before tax £21.9 million (2008: £32.0 million).
	Earnings per share:
	Basic earnings per share 7.4p (2008: 10.7p).
	Diluted earnings per share 7.2p (2008: 10.3p).
	Earnings per share excluding amortisation of intangible asset - client relationships and redundancy costs:
	Basic earnings per share 10.8p (2008: 12.4p).
	Diluted earnings per share 10.6p (2008: 11.9p).
	The total dividend for the period is 7.1p per ordinary share (2008: 7.1p).
	Proposed final dividend 3.55p per share (2008: 3.55p).

Declaration of Final Dividend

The Board is pleased to announce that we are proposing a final dividend of 3.55p, to be approved at the 2010 AGM and payable on 5 April 2010 to shareholders on the register at close of business on 12 March 2010, with an ex-dividend date of 10 March 2010.

Jamie Matheson, Executive Chairman said:

"Current trading continues to be satisfactory although we should not assume that the economic woes of this country and the rest of the world are completely behind us. Your Board remains confident about the future prospects of Brewin Dolphin."

For further information, please contact:

Brewin Dolphin Holdings PLC	Tel: 020 7248 4400
Jamie Matheson, Executive Chairman
Hudson Sandler
Andrew Hayes / Wendy Baker	Tel: 020 7796 4133

Executive Chairman's Statement

In a year which has seen financial markets across the globe go through perhaps the most difficult times in living memory, I am pleased to report that Brewin Dolphin has been able to sail a relatively steady course through some pretty rough seas. I believe this gives shareholders grounds for continued confidence in the fundamental strengths and resilience of the business. 

Total income for the year to 27 September 2009 was £212.3 million, 2.8% up on last year, against a fall in the FTSE 100 average level across each financial year of 21.6%.  Pre-tax profits excluding redundancy costs and amortisation of the intangible asset - client relationships were £32.1 million, 12.7% down on last year.  Pre-tax profits were £21.9 million. 

Investment Management

Our mainstream Investment Management business continued to make material progress, adding substantially to our funds under management.

Investment Management is by far and away the largest part of your Group's activities and once again performed well in an extraordinarily turbulent year. Indeed it has been gratifying to note that the business has seen a material inflow of funds during the period reflecting a combination of our clients' confidence in our business and our ability to provide clear and straight forward long term investment strategies.  The division's income rose by 5.3% during the period and profits (excluding redundancy costs and amortisation of client relationships) by 3.1%. Total funds under management increased from £18.7bn to £20.5bn, a 9.6% increase with, most importantly, discretionary funds rising by 15.7%. During the same period the FTSE100 index fell by 0.1% and the FTSE APCIMS Private Investor Series Balanced Portfolio rose by 2.1%.

We have continued to benefit from the arrival of new Investment Managers and Financial Planners and I would anticipate this being a feature again in the coming year. We now have a network of forty offices throughout the UK providing good national coverage. While I should not rule out one or two further new openings, it is your Board's intention that the main thrust of future growth within the UK be centred on the existing offices as we leverage the network now in place. In parallel with this we continue to put special emphasis on the maintenance and development of our business support operations to improve further our efficiency and our client services.

Investment Banking

Despite operating in a very tough trading environment, our Investment Banking division importantly remained profitable, reflecting the flexibility of its business model.

A year ago the outlook for our Investment Banking division was somewhat uncertain but we remained confident that the short term impact would be containable. Having reported an operating loss of £0.8 million at the interim stage (excluding redundancy costs), the division has been able to end the year in the black. Trading activity and the level of enquiries that are being received suggest that the outlook for the current year is somewhat more encouraging.

Dividend

The Board is proposing a final dividend of 3.55p, to be approved at the 2010 AGM and payable on 5 April 2010.

Regulation

The events of the last two years mean that the role of regulation in the affairs of your Group will remain significant and it continues to be very much the policy of your Board to see that the Group fully meets the standards and requirements of modern day regulation. In this ever evolving environment it is important that your Board keeps the Group's level of capital adequacy under review.

Board Changes

Nick Hood, David McCorkell, Michael Williams and Jock Worsley will be standing for re-election at the AGM and I commend them to you.

Two Directors retired from the Board at the year end, Christopher Legge and Simon Still. Simon Still joined the Group at the time of the acquisition of Wise Speke and the Board in 2001 as Chief Operating Officer. Simon was responsible for our business support operations. This part of the Group is very often less visible than the client facing side, but its contribution to client service should not be underestimated. I would like to put on record the Board's appreciation of Simon's efforts in charge of this part of the Group.

Christopher Legge remains actively involved in managing clients affairs - albeit no longer every day of the week. As a relative newcomer to the Group it is not easy for me to put into words adequately Christopher's contribution over nearly 50 years. He is very much one of the founding fathers of Brewin Dolphin and his passionate belief in behaving with the utmost integrity and looking after the best interests of clients is a fine legacy that he leaves us. Christopher's contribution at Board level has been invaluable and he has never failed to deliver a reasoned, always valuable and not infrequently passionate point of view. I thank both these gentlemen for their contribution to the affairs of your Group.

Strategy and Re-branding

Brewin Dolphin's strategy remains to grow our business to the benefit of our shareholders by maintaining the quality and increasing the depth of service to our clients. Following our re-branding last year and the amalgamation of our divisions under the Brewin Dolphin name, we have this year sponsored a number of events which have raised significant sums for charity. The most notable of these was our sponsorship of Sir Ranulph Fiennes third and successful attempt to climb Everest which helped him reach his goal of raising a remarkable £3m for Marie Curie Cancer Care. 

Outlook

The performance for the year is the result of the hard work of Brewin Dolphin people and the continued support of our clients, for which we are extremely grateful. I believe the results achieved by your Group give justifiable cause for pride, particularly given the extraordinary circumstances of the last year. As a firm we have always believed in the merits of long term prudent equity based investment and have never lost sight of the merits of dividend as a sound method of return to investors. This approach has played no small part in allowing us to grow funds under management this year. I believe the debt culture, so prevalent in the last decade, is at last being seen for what it is, so its diminution continues to bode well for our Group.

Current trading continues to be satisfactory although we should not assume that the economic woes of this country and the rest of the world are completely behind us. Your Board remains confident about the future prospects of Brewin Dolphin. 

Jamie Matheson

1 December 2009

Business Review 

Investment Management Report

By D W McCorkell - Executive Director - Head of Investment Management

It is a pleasure to report a record year for the Investment Management Division in what has proved to be one of the most interesting years for global stock markets.

Investment Management's operating profits excluding redundancy costs and amortisation of client relationships, rose to £30.6 million from £29.7 million, an increase of 3.1%. Total income rose to £204.0 million, an increase of 5.3% over the 2008 figure of £193.7 million, an excellent performance considering market conditions during the year.

Indices and Values of Funds under Management ("FUM") 

	At 27 September 2009	At 28 September 2008	% Change
Indices
FTSE APCIMS Private Investor Series Balanced Portfolio	2,640	2,586	2.1%
FTSE 100	5,082	5,089	-0.1%
Funds Under Management
	£ billion	£ billion
Discretionary funds	11.8	10.2	15.7%
Advisory funds	8.7	8.5	2.4%
Total managed funds	20.5	18.7	9.6%

Total funds under Discretionary Management at the year end were £11.8 billion against £10.2 billion last year, a rise of 15.7%, which compares to a fall of 0.1% in the FTSE100 Share Index and a rise of 2.1% in the FTSE APCIMS Private Investors Services Balanced Portfolio Index. Funds under Advisory Management were £8.7 billion, a rise of 2.4% over the year, giving total funds under management of £20.5 billion, a rise of 9.6% overall. The figures include £127 million of new funds brought in by new teams who joined in the year. The teams who joined us in 2008 have introduced £1.3 billion of Discretionary funds and £0.7 billion of Advisory funds since they arrived. 

Financial performance

	Total Income 2009 £ million	Operating Profit* 2009 £ million	Total Income 2008 £ million	Operating Profit * 2008 £ million
Discretionary Portfolio Management	128.8	19.4	123.0	18.9
Advisory Portfolio Management	75.2	11.2	70.7	10.8
	204.0	30.6	193.7	29.7

* Excluding redundancy costs and amortisation of client relationships

Fees, interest and other recurring income has increased by 4% in the year, with commission income increasing by 7%. Recurring income is 54% (2008: 55%) of total income. The trend towards an increasing level of Discretionary Management continues but the exceptionally high level of activity seen during the year has resulted in this modest increase in the proportion of non-recurring income.

The Business

During the year, we have added six new Investment Management teams to the Group. Four of these teams joined our offices in London, Teesside, Leeds and Guernsey. The largest team, consisting of four Divisional Directors and three staff joined us in Brighton where we have opened a new office. In January 2010, our Eastbourne office will relocate to join this new team in Brighton. The other new branch opening during the year was in Truro, where the total number of staff is six, including two Divisional Directors. In addition, we have relocated part of our business support operations from London and Leicester to new and much more efficient premises in Edinburgh.

Following the retirement of a number of Senior Investment Managers, we now have a total of 643 Client Executives and Investment Managers. We thank all of them for their contribution over many years and wish them a long and happy retirement. We have developed our Graduate Trainee Programme, with the largest ever number of Graduates starting the programme this September. All of last year's graduates completed the programme and have now joined teams around the Group.

Financial Planning continues to be an important area of our business. Economic uncertainty has resulted in many clients undertaking a full financial review with our Financial Planning teams and their usual Investment Managers. We have 61 qualified Financial Planners across the Group, with clients of all branches having access to their advice. 

The Financial Services Authority ("FSA") will publish the Retail Distribution Review ("RDR") early next year and after a final period of consultation, it will be implemented at the end of 2012. The RDR will affect the way we do our business and will require Investment Managers to have a minimum level of qualifications and to enter our continual professional development programme. We have enhanced our training and competence systems so that all our Investment Managers meet these requirements.

We have continued to grow our Business Development Team which introduces Brewin Dolphin services to Independent Financial Advisors ("IFAs") and other Professional Intermediaries in the UK. In the period, this team has introduced £235 million of new FUM. Further enhancement to the services we provide for intermediaries and their clients, particularly in light of the RDR, will be introduced in 2010. 

Management of charities' assets is a growing part of our business. At the year end charitable FUM had risen to £1.5 billion from £1.3 billion in September 2008. A specialist Charity Investment Management Team now provides services throughout the UK. We have also seen a significant increase in our FUM in various 'tax wrappers' with £2.3 billion now in Offshore Bonds, SIPPs and other self invested pension schemes. 

We are delighted to report that we have won several awards this year, importantly, the Shares Magazine Award for Best Discretionary Stockbroker 2009. At the Daily Telegraph Wealth Management Awards we were very proud that a senior member of our operations team won the Award for exceptional performance in Business Support and our Perspective newsletter the Best Market Newsletter category. 

We have developed our web presence and will improve it further to increase the variety and depth of our online services for clients and intermediaries. It is important for us to ensure that our basic online services are always stable and reliable prior to considering additional functionality. We are working to increase the online access and range of reports we provide for our clients.

The strength of our business model has been demonstrated throughout this difficult period. We have seen significant inflows of new business and clients often tell us how important it is to be able to talk to a real person whom they know and trust. I would like to thank all our Investment Managers and support staff for the enormous efforts they have made in looking after our clients so well during one of the most extraordinary years in stock market history. 

Investment Banking Report

By G Summers - Director of Brewin Dolphin Limited - Head of Investment Banking

The financial period under review was extremely challenging, with a further deterioration in conditions in capital markets around the world. The UK small and mid cap market place suffered more than most with a further significant drop in corporate activity and trading, as access to both debt and equity capital became severely constrained. 

However, it is pleasing to report despite these testing conditions that the Investment Banking team managed to come through the year making a small profit, maintaining its unbroken track record of profitability. Though it is still early days there are signs that capital markets have begun to recover. We are cautiously optimistic that this will be sustained.

The Investment Banking division has a team of sixty professionals specialising in six core sectors: Consumer; Healthcare; Industrials; IT; Resources and Support Services. Our Research, Sales and Trading team is well regarded in the City and team members enjoy independent recognition in surveys such as Extel and Starmine. Our Corporate Broking and Advisory team continues to offer innovative solutions and best advice to our corporate clients. 

We have recruited two more experienced analysts during the year and a new director in corporate finance to complement our existing teams.  We have appointed a new Head of Equities and a new Head of Corporate Finance.

The business is firmly committed to our core values of diligence and integrity which together help us deliver a valued service to our clients. This approach has enabled us to come through the recent difficult markets with an enhanced reputation and should ensure that we continue to build on our very solid foundations, into the medium term and beyond.

Consolidated Income Statement

52 week period ended 27 September 2009

	Note	52 weeks to 27 September 2009	(Restated) 52 weeks to 28 September 2008
		£'000	£'000
Continuing operations
Revenue		187,241	186,969
Other operating income		25,071	19,526
Total income	2	212,312	206,495
Staff costs		(102,763)	(105,200)
Redundancy costs		(3,638)	(634)
Amortisation of intangible assets - client relationships		(6,566)	(4,244)
Other operating costs		(78,873)	(70,607)
Operating expenses		(191,840)	(180,685)
Operating profit		20,472	25,810
Finance income	3	2,435	7,142
Finance costs	3	(968)	(994)
Profit before tax		21,939	31,958
Tax	4	(6,404)	(9,939)
Profit attributable to equity shareholders of the parent from continuing operations		15,535	22,019
Earnings per share
From continuing operations
Basic	6	7.4p	10.7p
Diluted	6	7.2p	10.3p

Consolidated Statement of Recognised Income and Expense

52 week period ended 27 September 2009

		52 weeks to  27 September  2009	(Restated)  52 weeks to 28 September 2008
	Note	£'000	£'000
Loss on revaluation of available-for-sale investments		(17)	(900)
Deferred tax credit on revaluation of available-for-sale investments		4	254
Actuarial loss on defined benefit pension scheme		(9,556)	(4,375)
Deferred tax credit on actuarial loss on defined benefit pension scheme		2,676	1,225
Current tax credit on share-based payments		63	568
Deferred tax charge on share-based payments		(75)	(1,255)
Net expense recognised directly in equity		(6,905)	(4,483)
Profit for period		15,535	22,019
Total recognised income and expense for the period attributable to equity shareholders of the parent		8,630	17,536
Effects of change in accounting policy attributable to equity shareholders of the parent	1	-	(2,227)
		8,630	15,309

Consolidated Balance Sheet

As at 27 September 2009

		As at 27 September 2009	(Restated) As at 28 September 2008
	Note	£'000	£'000
ASSETS
Non-current assets
Intangible assets		89,605	85,685
Property, plant and equipment		22,260	27,975
Available-for-sale investments		10,609	10,626
Other receivables		2,269	2,098
Deferred tax asset		852	-
		125,595	126,384
Current assets
Trading investments		644	724
Trade and other receivables		441,290	283,404
Cash and cash equivalents		69,271	60,546
		511,205	344,674
Total assets		636,800	471,058
LIABILITIES
Current liabilities
Bank overdrafts		4,289	3,717
Trade and other payables		468,619	306,855
Current tax liabilities		1,715	484
Provisions		1,871	2,068
Shares to be issued including premium		5,056	8,233
		481,550	321,357
Net current assets		29,655	23,317
Non-current liabilities
Retirement benefit obligation		16,253	7,964
Deferred tax liabilities		-	1,938
Deferred purchase consideration		3,221	2,960
Provisions		172	-
Shares to be issued including premium		17,385	16,946
		37,031	29,808
Total liabilities		518,581	351,165
Net assets		118,219	119,893
EQUITY
Called up share capital	7	2,122	2,080
Share premium account	7	94,140	90,145
Revaluation reserve	7	6,885	6,898
Merger reserve	7	4,562	4,562
Profit and loss account	7	10,510	16,208
Equity attributable to equity holders of the parent	7	118,219	119,893

 

Company Balance Sheet

As at 27 September 2009

		As at 27 September 2009	As at 28 September 2008
		£'000	£'000
	Note
ASSETS
Non-current assets
Investment in subsidiaries		141,719	141,052
Other receivables		329	430
		142,048	141,482
Current assets
Trade and other receivables		3,739	7,708
Cash and cash equivalents		291	57
		4,030	7,765
Total assets		146,078	149,247
LIABILITIES
Current liabilities
Trade and other payables		7,352	7,357
Shares to be issued including premium		5,056	8,233
		12,408	15,590
Net current liabilities		(8,378)	(7,825)
Non-current liabilities
Shares to be issued including premium		17,385	16,946
		17,385	16,946
Total liabilities		29,793	32,536
Net assets		116,285	116,711
EQUITY
Called up share capital	7	2,122	2,080
Share premium account	7	94,140	90,145
Merger reserve	7	4,847	4,847
Profit and loss account	7	15,176	19,639
Equity attributable to equity holders	7	116,285	116,711

Consolidated Cash Flow Statement

52 week period ended 27 September 2009

		52 weeks to 27 September 2009	(Restated) 52 weeks to 28 September 2008
	Note	£'000	£'000
Net cash inflow from operating activities	8	37,389	14,104
Cash flows from investing activities
Purchase of intangible assets - goodwill		(987)	-
Purchase of intangible assets - client relationships		(5,360)	(10,681)
Purchase of intangible assets - software		(5,088)	-
Purchases of property, plant and equipment		(4,443)	(15,746)
Dividend received from available-for-sale investments		352	404
Net cash used in investing activities		(15,526)	(26,023)
Cash flows from financing activities
Dividends paid to equity shareholders		(15,027)	(21,500)
Proceeds on issue of shares		1,317	2,845
Net cash used in financing activities		(13,710)	(18,655)
Net increase/(decrease) in cash and cash equivalents		8,153	(30,574)
Cash and cash equivalents at the start of period		56,829	87,403
Cash and cash equivalents at the end of period		64,982	56,829
Firm's cash		43,118	38,189
Firm's overdraft		(4,289)	(3,717)
Firm's net cash		38,829	34,472
Client settlement cash		26,153	22,357
Net cash and cash equivalents		64,982	56,829
Cash and cash equivalents shown in current assets		69,271	60,546
Bank overdrafts		(4,289)	(3,717)
Net cash and cash equivalents		64,982	56,829

For the purposes of the cash flow statement, cash and cash equivalents include bank overdrafts.

Notes to the Financial Statements

1.	Change in accounting policy

After a long and constructive dialogue with the Financial Reporting Review Panel the Group has considered the additional clarification which the forthcoming standard IFRS 3 (2008) brings to the recognition of intangible assets and the various practices currently applied by other firms in the purchase of investment management businesses, and has retrospectively changed its accounting policy. Payments to acquire teams of investment managers, bringing with them funds under management, have been re-classified as the intangible asset - client relationships, rather than goodwill. Similarly intangible assets representing client relationships acquired as part of business combinations have been recognised separately to goodwill. The new accounting policy is considered preferable as it brings us into line with our peers and is more transparent.

This new accounting policy has been applied retrospectively from the date of the Group's transition to IFRS and the comparative figures for 2008 in these financial statements have been restated. 

Opening retained earnings as at 1 October 2007 have been reduced by £2.2m after deferred taxation which is the cumulative amount of the adjustment relating to periods prior to 2008.

 

The main changes to our financial statements are presented below:

		2009	2009		2008	2008
		Prior to change of accounting policy	Following change of accounting policy		Previously reported	As restated
		£'000	£'000		£'000	£'000
Profit before tax and amortisation		28,505	28,505		36,202	36,202
Amortisation of the intangible asset - client relationships		-	(6,566)		-	(4,244)
Profit before tax		28,505	21,939		36,202	31,958
Taxation		(8,242)	(6,404)		(11,127)	(9,939)
Profit after taxation		20,263	15,535		25,075	22,019
Basic earning per share post amortisation		9.6p	7.4p		12.2p	10.7p
Fully diluted earning per share post amortisation		9.4p	7.2p		11.7p	10.3p
		2009	2009		2008	2008
		Prior to change of accounting policy	Following change of accounting policy		Previously reported	As restated
		£'000	£'000		£'000	£'000
Net assets		128,230	118,219		125,176	119,893
Intangible assets
Goodwill		99,095	48,438		93,023	48,376
Client relationships		-	36,753		-	37,309
		99,095	85,191		93,023	85,685
Deferred tax asset / (liability)		(3,041)	852		(3,993)	(1,938)

2.	Segmental information

For management purposes, the Group is divided into two business streams: Investment Management and Investment Banking. These form the basis for the primary segment information reported below. All operations are carried out in the United Kingdom and the Channel Islands. All segment income relates to external clients.

52 week period ended 27 September 2009
	Discretionary Portfolio Management	Advisory Portfolio Management	Total Investment Management	Investment Banking	Group
	£'000	£'000	£'000	£'000	£'000
Total income	128,790	75,225	204,015	8,297	212,312
Operating profit before redundancy costs and amortisation of client relationships	19,428	11,173	30,601	75	30,676
Redundancy costs			(3,393)	(245)	(3,638)
Amortisation of client relationships			(6,566)	-	(6,566)
Operating profit					20,472
Finance income (net)					1,467
Profit before tax					21,939
Other Information
Capital expenditure			4,404	39	4,443
Depreciation			9,982	171	10,153
Amortisation of intangible asset - software			674	-	674
Share-based payments			652	34	686
Segment assets excluding current tax assets			567,683	69,117	636,800
Segment liabilities excluding current tax liabilities			447,749	69,117	516,866
52 week period ended 28 September 2008 (Restated)
	Discretionary Portfolio Management	Advisory Portfolio Management	Total Investment Management	Investment Banking	Group
	£'000	£'000	£'000	£'000	£'000
Total income	122,975	70,721	193,696	12,799	206,495
Operating profit before redundancy costs and amortisation of client relationships	18,845	10,845	29,690	998	30,688
Redundancy costs			(134)	(500)	(634)
Amortisation of client relationships			(4,244)	-	(4,244)
Operating profit					25,810
Finance income (net)					6,148
Profit before tax					31,958
Other Information
Capital expenditure			15,147	599	15,746
Depreciation			8,459	126	8,585
Share-based payments			621	40	661
Segment assets excluding current tax assets			439,744	31,314	471,058
Segment liabilities excluding current tax liabilities			319,367	31,314	350,681

3.	Finance income and finance costs

	2009	2008
	52 Weeks	52 Weeks
	£'000	£'000
Finance income
Interest income on pension plan assets	-	159
Dividends from available-for-sale investments	352	404
Interest on bank deposits	2,083	6,579
	2,435	7,142
Finance costs
Finance cost of deferred consideration	509	981
Interest expense on pension plan assets	412	-
Interest on bank overdrafts	47	13
	968	994

4.		Taxation
			2009	(Restated) 2008
			52 Weeks	52 Weeks
			£'000	£'000
United Kingdom
Current tax			5,931	5,955
Prior year			667	192
Overseas tax
Current tax			174	216
Prior year			(246)	5
			6,526	6,368
United Kingdom deferred tax
Current year			531	3,836
Prior year			(653)	(265)
			6,404	9,939
United Kingdom corporation tax is calculated at 28% (2008: 29%) of the estimated assessable taxable profit for the period.
Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.
The charge for the year can be reconciled to the profit per the income statement as follows:
Profit before tax			21,939	31,958
Tax at the UK corporation tax rate of 28% (2008: 29%)			6,143	9,268
Tax effect of expenses that are not deductible in determining taxable profit			493	551
Tax effect of prior year tax			532	197
Tax effect of prior year deferred tax			(653)	(265)
Tax effect of share-based payments			(196)	162
Tax effect of deferred tax timing differences			(83)	(148)
Tax effect of leasehold property depreciation			279	174
Tax effect of prior year leasehold property allowances			(111)	-
Tax expense			6,404	9,939
Effective tax rate for the year			29%	31%
In addition to the amount charged to the income statement, deferred tax relating to the revaluation of the Group's available-for-sale investments amounting to £4,000 (2008: £254,000) has been credited directly to equity and deferred tax relating to the actuarial loss in the defined benefit pension scheme amounting to £2,676,000 (2008: £1,225,000) has been credited directly to equity. Deferred tax on share-based payments of £75,000 (2008: £1,255,000) has been credited directly to equity.

5.

Dividends

	2009	2008
	52 Weeks	52 Weeks
	£'000	£'000
Amounts recognised as distributions to equity shareholders in the period:
Final dividend paid 6 April 2009, 3.55p per share (2008: 3.5p per share)	7,504	7,248
Interim dividend paid 25 September 2009, 3.55p per share (2008: 3.55p per share)	7,523	7,383
	15,027	14,631
Proposed final dividend for the 52 weeks ended 27 September 2009 of 3.55p (2008: 3.55p) per share based on shares in issue at 10 November 2009 (7 November 2008)	7,537	7,388
The proposed final dividend for the 52 week period ended 27 September 2009 of 3.55p per share is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements.

6.	Earnings per share

The calculation of the basic and diluted earnings per share is based on the following data:

	2009	(Restated) 2008
Number of shares
	'000	'000
Basic
Weighted average number of shares in issue in the period	210,940	206,157
Diluted
Weighted average number of options outstanding for the period	1,271	2,415
Estimated weighted average number of shares earned under deferred consideration arrangements	6,555	8,527
Diluted weighted average number of options and shares for the period	218,766	217,099
Earnings attributable to ordinary shareholders
	£'000	£'000
Profit attributable to equity shareholders of the parent from continuing operations	15,535	22,019
Redundancy costs	3,638	634
less tax	(1,019)	(184)
Amortisation of intangible assets - client relationships	6,566	4,244
less tax	(1,838)	(1,188)
Adjusted basic profit for the period and attributable earnings excluding redundancy costs and amortisation of client relationships	22,882	25,525
Profit attributable to equity shareholders of the parent from continuing operations	15,535	22,019
Finance costs of deferred consideration (Note a)	277	549
less tax	(78)	(159)
Adjusted fully diluted profit for the period and attributable earnings	15,734	22,409
Redundancy costs	3,638	634
less tax	(1,019)	(184)
Amortisation of intangible assets - client relationships	6,566	4,244
less tax	(1,838)	(1,188)
Adjusted fully diluted profit for the period and attributable earnings excluding redundancy costs and amortisation of client relationships	23,081	25,915
From continuing operations
Basic	7.4p	10.7p
Diluted	7.2p	10.3p
From continuing operations excluding redundancy costs and amortisation of client relationships
Basic	10.8p	12.4p
Diluted	10.6p	11.9p
a) Finance costs of deferred consideration are added back where the issue of shares is more dilutive than the interest cost saved.
The numerators for the purposes of calculating both basic and diluted earnings per share have been adjusted following the change in accounting policy described in note 1.

7.	Reserves and reconciliation of changes in equity

	Called up share capital	Share premium account	Revaluation reserve	Merger reserve	Profit and loss account	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Group
Previously reported 30 September 2007	2,035	86,968	7,544	4,562	14,223	115,332
Prior year adjustment (note 1)	-	-	-	-	(2,227)	(2,227)
As restated 30 September 2007	2,035	86,968	7,544	4,562	11,996	113,105
Profit for the period	-	-	-	-	22,019	22,019
Dividends	-	-	-	-	(14,631)	(14,631)
Issue of shares	45	3,177	-	-	-	3,222
Revaluation	-	-	(900)	-	-	(900)
Deferred and current tax on items taken directly to equity	-	-	254	-	538	792
Share-based payments	-	-	-	-	661	661
Actuarial loss on defined benefit pension scheme	-	-	-	-	(4,375)	(4,375)
28 September 2008	2,080	90,145	6,898	4,562	16,208	119,893
Profit for the period	-	-	-	-	15,535	15,535
Dividends	-	-	-	-	(15,027)	(15,027)
Issue of shares	42	3,995	-	-	-	4,037
Revaluation	-	-	(17)	-	-	(17)
Deferred and current tax on items taken directly to equity	-	-	4	-	2,664	2,668
Share-based payments	-	-	-	-	686	686
Actuarial loss on defined benefit pension scheme	-	-	-	-	(9,556)	(9,556)
27 September 2009	2,122	94,140	6,885	4,562	10,510	118,219
	Called up share capital	Share premium account	Revaluation reserve	Merger reserve	Profit and loss account	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Company
30 September 2007	2,035	86,968	-	4,847	18,714	112,564
Profit for the period	-	-	-	-	14,895	14,895
Dividends	-	-	-	-	(14,631)	(14,631)
Share-based payments	-	-	-	-	661	661
Issue of shares	45	3,177	-	-	-	3,222
28 September 2008	2,080	90,145	-	4,847	19,639	116,711
Profit for the period	-	-	-	-	9,878	9,878
Dividends	-	-	-	-	(15,027)	(15,027)
Share-based payments	-	-	-	-	686	686
Issue of shares	42	3,995	-	-	-	4,037
27 September 2009	2,122	94,140	-	4,847	15,176	116,285

8.	Notes to the cash flow statement

	52 weeks to 27 September 2009	(Restated) 52 weeks to 28 September 2008
	£'000	£'000
Group
Operating profit as previously reported		30,054
Prior period adjustment (note 1)		(4,244)
Operating profit	20,472	25,810
Adjustments for:
Depreciation of property, plant and equipment	10,153	8,585
Amortisation of intangible assets - client relationships	6,566	4,244
Amortisation of intangible assets - software	674	-
Loss on disposal of property, plant and equipment	5	135
Intangible asset impairment	230	430
Retirement benefit obligation	(1,267)	(6,146)
Share-based payment cost	686	661
Unwind of discount of shares to be issued and   deferred purchase consideration	509	981
Interest income	2,083	6,785
Interest expense	(968)	(994)
Operating cash flows before movements in working capital	39,143	40,491
Decrease in receivables and trading investments	161,518	73,280
Decrease in payables	(157,976)	(89,528)
Cash generated by operating activities	42,685	24,243
Tax paid	(5,296)	(10,139)
Net cash inflow from operating activities	37,389	14,104
Company
Operating profit	9,878	14,895
Unwind of discount of shares to be issued and   deferred purchase consideration	-	11
Operating cash flows before movements in working capital	9,878	14,906
Decrease in receivables and trading investments	4,070	3,619
(Decrease)/Increase in payables	(4)	5
Cash generated by operating activities	13,944	18,530
Tax paid	-	-
Net cash inflow from operating activities	13,944	18,530
Cash and cash equivalents comprise cash at bank and bank overdrafts.

  

9.

Funds

	At 27 September 2009	At 28 September 2008
	£ Billion	£ Billion
In Group's nominee or sponsored member	11.6	10.0
Stock not held in Group's nominee	0.2	0.2
Discretionary funds under management	11.8	10.2
In Group's nominee or sponsored member	7.2	6.8
Other funds where valuations are carried out but where the stock is not under the Group's control	1.5	1.7
Advisory funds under management	8.7	8.5
Managed funds	20.5	18.7
In Group's nominee or sponsored member	3.7	3.7
Stock not held in Group's nominee	0.4	0.2
Execution only stock	4.1	3.9
Total funds	24.6	22.6
Stock
In Group's nominee or sponsored member	22.5	20.5
Stock not held in Group's nominee	2.1	2.1
	24.6	22.6

10.	Additional Information

The accounting policies used in arriving at the preliminary figures are consistent with those which will be published in the full financial statements. They are also consistent with those policies which were set out in the Group's Annual Report and Accounts for 2008, save that as set out in note 1. We have retrospectively changed an accounting policy, so that payments to acquire teams of investment managers, bringing with them funds under management, are now classified as the intangible asset - client relationships, rather than goodwill.

This preliminary announcement was approved by the Board on 1 December 2009.

The financial information in this press release does not constitute statutory accounts for the period ended 27 September 2009 or 29 September 2008. Statutory accounts for 2008 have been delivered to the Registrar of Companies and those for 2009 will be delivered following the Company's Annual General Meeting. The auditors have reported on the 2008 and 2009 accounts; their reports were unqualified, did not draw attention to any matters by way of emphasis without qualifying their report and did not contain statements under section 237(2) or (3) of the Companies Act 1985 in respect of the accounts for 2008 nor a statement under section 498 (2) or (3) of the Companies Act 2006 in respect of the accounts for 2009. 

Whilst the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs), this announcement does not itself contain sufficient information to comply with IFRSs. The Company expects to publish full financial statements that comply with IFRSs in January 2010.

11.	Annual General Meeting

The Annual General Meeting will be held at 12 noon on 26 February 2010 at Merchant Taylors' Hall, 30 Threadneedle Street, London, EC2R 8JB.

12.	Going concern

The Directors believe that the Group is well placed to manage its business risks successfully. The Group's forecasts and projections, taking account of possible adverse changes in trading performance, show that the Group should be able to operate within the level of its current financing arrangements. Accordingly, the Directors continue to adopt the going concern basis for the preparation of the financial statements.

13.	Availability of Annual Report

The Annual Report will be posted to shareholders during January 2010. Copies will be available from the registered office of the Company, 12 Smithfield Street, London, EC1A 9BD. It will also be available as a download from the Company's website www.brewin.co.uk. A further notification will be made to advise of posting and publishing on the website.

14.	Forward-looking statements

This announcement contains certain forward-looking statements with respect to the Brewin Dolphin's Group's financial condition, operations, and business opportunities. These forward-looking statements represent the Group's expectations or beliefs concerning future events, and involve known and unknown risks, and uncertainty, that could cause actual results, performance, or events to differ materially from those expressed or implied in such statements. Past performance cannot be relied on as a guide to future performance.

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ENDFR KFLFBKLBZFBV

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Related Shares:

BRW.L