Become a Member

Track your favourite stocks
Create & monitor portfolios
Daily portfolio value

Company	Chg	Chg %
Quickpicks
£	%
Add shares to your quickpicks to display them here!

Interim Financial Report

29th May 2012 07:00

RNS Number : 2690E

Brewin Dolphin Holdings PLC

29 May 2012

Brewin Dolphin Holdings PLC

Interim Financial Report

For the Half Year Ended 31 March 2012

Highlights (from continuing operations)

●	Total managed funds £25.7 billion at 31 March 2012 (30 September 2011: £24.0 billion, 27 March 2011: £25.0 billion).
●	Discretionary funds £17.3 billion at 31 March 2012 (30 September 2011: £15.6 billion, 27 March 2011: £15.5 billion).
●	Total income £131.4 million (27 March 2011: £131.5 million).

●	Profit before tax £12.3 million (27 March 2011: £11.9 million) a 3.3% increase.
●	Adjusted* profit before tax £18.9 million (27 March 2011: £22.8 million) a 17.1% decrease.

●	Earnings per share:
	-	Basic earnings per share 3.7p (27 March 2011: 3.7p).
	-	Diluted earnings per share 3.5p (27 March 2011: 3.5p).
●	Adjusted* earnings per share:
	-	Basic earnings per share 5.8p (27 March 2011: 7.2p) a decrease of 19.4%.
	-	Diluted earnings per share 5.5p (27 March 2011: 6.9p) a decrease of 20.3%.

* these figures have been adjusted to exclude redundancy costs, additional FSCS levy and amortisation of client relationships.

Declaration of Interim Dividend

The Board declares a maintained interim dividend of 3.55p per share. The interim dividend is payable on 21 September 2012 to shareholders on the register at the close of business on 24 August 2012 with an ex-dividend date of 22 August 2012.

Jamie Matheson, Executive Chairman said

"It is a year since we announced the outcome of the major strategic review of our operations and activities to reduce overheads, upgrade systems and enhance services to clients. I am pleased to report that much progress has been made during the last twelve months and implementation remains on plan and on budget….and will position us well for long term growth. "

For further information

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

Executive Chairman's Statement

To the members of Brewin Dolphin Holdings PLC

Cautionary statement

This Executive Chairman's Statement which forms the Interim Management Report (IMR) for the 26 week period ended 31 March 2012 has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. The IMR should not be relied on by any other party or for any other purpose.

The IMR contains certain forward-looking statements. These statements are made by the directors in good faith based on the information available to them up to the time of their approval of this report but such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

Introduction

This statement forms the Interim Management Report for the 26 week period ended 31 March 2012.

Results and review of the past six months

During the first half your Company has made significant strides with its strategy to enhance services to our clients while maximising efficiency in running the business. At the same time we have been operating in a business environment which I think can justifiably be described as challenging.

In the period under review total income from continuing operations was stable at just over £131m. This was achieved despite generally quieter markets with less activity in many clients' portfolios, reflecting their planned repositioning to a more defensive stance. Profits before tax from continuing operations rose by 3.3% to £12.3m. It should be acknowledged that we have benefited significantly from the absence of the large FSCS levy incurred last year.

We are in the process of moving to a more fee-based business model that is appropriate to today's market trends. Although this will have some short term impact on revenue as we transition to this approach, it will improve significantly the quality of the business across both our Advisory and Discretionary services for the future.

The balance sheet position remains satisfactory with firm's cash of £42.4m (2011: £46.5m).

Total funds under management rose by some 7.1% driven by a 10.9% lift in discretionary funds. During the same period the average level of both the FTSE 100 Index and the APCIMS Private Investor Series Balanced Portfolio Index increased by 12.5% and 9.7% respectively.

Funds Under Management
	Advisory	Discretionary	Total managed funds
	£ billion	£ billion	£ billion
Value of funds at 30 September 2011	8.4	15.6	24.0
Inflows	0.1	0.7	0.8
Outflows	(0.5)	(0.4)	(0.9)
Transfers	(0.2)	0.2	-
Market movement	0.6	1.2	1.8
Value of funds at 31 March 2012	8.4	17.3	25.7

% increase in funds since 30 September 2011	- %	10.9%	7.1%

Regulation

While it is obviously pleasing that the impact of this year's FSCS levy was considerably less than in the previous period, the cost of regulation continues to be material for your company. We do not see the regulatory load diminishing. It is your Board's intention that the steps being taken as part of our strategic review will go some way to mitigate this financial burden.

Developments

Some time ago your Board expressed the view that our regional network was now of sufficient scale and that further changes were unlikely to increase the overall number of offices materially. We have recently announced that we will be opening in Ipswich, following the recruitment of a team of six. We have recruited ten new executives for Birmingham and Bristol. We have also decided that our operations in Dumfries will be merging with our Penrith office and in a similar vein the Elgin office will be consolidating with Inverness.

As previously announced the sale of our Corporate Advisory & Broking business was successfully completed on 1 February 2012.

Strategy

It is a year since we announced the outcome of the major strategic review of our operations and activities to reduce overheads, upgrade systems and enhance services to clients. I am pleased to report that much progress has been made during the last twelve months and implementation remains on plan both as to time and cost. We expect to begin the migration to our new systems provider at the end of this calendar year, rolling it out progressively during 2013. This will enable us to make significant cost savings, with the benefits of these becoming more significant towards the latter stages of the process. This investment will lead to a materially enhanced service for clients in the coming years while at the same time allowing us to generate superior returns for our shareholders. We also believe that it will improve our ability to meet the demands of current and future regulation, including of course the Retail Distribution Review (RDR).

Board

Following the AGM, I was very pleased to be able to announce the appointment of David Nicol as a Non-Executive Director and he will of course stand for election at our next AGM.

It is the intention of our long standing Finance Director, Robin Bayford, to retire at the end of this calendar year and the search for a suitable candidate to take up the position of Finance Director has been underway for some time. At the time of writing I am able to tell you that such a candidate has been identified, but until the proposed appointment has FSA approval, no further announcement can be made.

Dividend

A maintained interim dividend of 3.55p per share will be paid on 21 September 2012 to shareholders on the register on 24 August 2012.

Related party transactions

Related party transactions are disclosed in Note 3 to the condensed set of financial statements.

Going concern

As stated in Note 2 to the condensed set of financial statements, the directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, a period of time not less than 12 months from the date of this report. Accordingly, the Directors continue to adopt a going concern basis in preparing the condensed financial statements.

Principal risks and uncertainties

Principal risks and uncertainties are covered in Note 4 to the condensed financial statements.

Outlook

While it would be easy to become distracted by the impact of the economic and political difficulties in Europe, there remains a growing demand for our services and an increasing appreciation of the place of equity within the savings industry. While our ability to influence the short term outlook is clearly limited, a very significant amount of work is being undertaken to ensure that Brewin Dolphin is ready to meet efficiently future conditions and the requirements of our clients. We believe our scale and approach positions us well for longer term growth. We continue to view the future with cautious optimism.

Jamie Matheson

28 May 2012

Condensed Consolidated Income Statement

26 week period ended 31 March 2012

		Unaudited 26 weeks to 31 March 2012	Unaudited 26 weeks to 27 March2011	Audited 53 weeks to 30 September 2011
	Note	£'000	£'000	£'000
Continuing operations
Revenue		122,812	123,616	248,375
Other operating income		8,566	7,849	15,638
Total income	5	131,378	131,465	264,013

Staff costs		(63,513)	(61,433)	(126,456)
Redundancy costs		(87)	(577)	(1,008)
Additional FSCS levy		(553)	(6,058)	(6,058)
Acquisition of subsidiary costs		-	-	(228)
Amortisation of intangible assets - client relationships	10	(5,954)	(4,226)	(10,486)
Other operating costs		(48,947)	(47,429)	(98,409)
Operating expenses		(119,054)	(119,723)	(242,645)

Operating profit		12,324	11,742	21,368
Finance income	6	554	505	1,253
Other gains and losses		(13)	-	(27)
Finance costs	6	(558)	(349)	(732)
Profit before tax	5	12,307	11,898	21,862
Tax	7	(3,533)	(3,634)	(6,884)
Profit for the period from continuing operations		8,774	8,264	14,978

Discontinued operations
(Loss)/profit for the period from discontinued operations	18	(3,172)	71	(877)
Profit for the period		5,602	8,335	14,101

Attributable to:
Equity shareholders of the parent from continuing operations		5,602	8,335	14,101
		5,602	8,335	14,101

Earnings per share

From continuing operations
Basic	8	3.7p	3.7p	6.6p
Diluted	8	3.5p	3.5p	6.3p

Condensed Consolidated Statement of Comprehensive Income

26 week period ended 31 March 2012

	Unaudited 26 weeks to 31 March 2012	Unaudited 26 weeks to 27 March 2011	Audited 53 weeks to 30 September 2011
	£'000	£'000	£'000

Profit for the period	5,602	8,335	14,101
Gain on revaluation of available-for-sale investments	-	13	-
Deferred tax credit on revaluation of available-for-sale investments	112	51	56
Exchange differences on translation of foreign operations	(66)	-	(83)
Actuarial (loss)/profit on defined benefit pension scheme	(3,247)	3,501	2,766
Deferred tax credit/(charge) on actuarial (loss)/profit on defined benefit pension scheme	779	(910)	(719)
Other comprehensive income for the period	(2,422)	2,655	2,020
Total comprehensive income for the period	3,180	10,990	16,121

Attributable to:
Equity shareholders of the parent	3,180	10,990	16,121
	3,180	10,990	16,121

Condensed Consolidated Statement of Changes in Equity

26 week period ended 31 March 2012

	Attributable to the equity shareholders of the parent
	Called up share capital	Share premium account	Own shares	Revaluation reserve	Merger reserve	Profit and loss account	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
26 week period ended 31 March 2012
Balance at 30 September 2011	2,405	116,028	(10,686)	4,118	22,950	19,970	154,785
Profit for the period	-	-	-	-	-	5,602	5,602
Other comprehensive income for the period
Deferred and current tax on other comprehensive income	-	-	-	112	-	779	891
Actuarial loss on defined benefit pension scheme	-	-	-	-	-	(3,247)	(3,247)
Exchange differences on translation of foreign operations	-	-	-	-	-	(66)	(66)
Total comprehensive income for the period	-	-	-	112	-	3,068	3,180
Dividends	-	-	-	-	-	(8,412)	(8,412)
Issue of shares	45	5,752	-	-	-	-	5,797
Own shares acquired in the period	-	-	(1,777)	-	-	-	(1,777)
Share-based payments	-	-	-	-	-	1,332	1,332
Deferred tax credit on share-based payments	-	-	-	-	-	138	138
Balance at 31 March 2012	2,450	121,780	(12,463)	4,230	22,950	16,096	155,043

26 week period ended 27 March 2011
Balance at 26 September 2010	2,270	113,612	(101)	4,062	4,562	17,211	141,616
Profit for the period	-	-	-	-	-	8,335	8,335
Other comprehensive income for the period
Deferred and current tax on other comprehensive income	-	-	-	51	-	(910)	(859)
Actuarial profit on defined benefit pension scheme	-	-	-	-	-	3,501	3,501
Revaluation of available-for-sale investments	-	-	-	13	-	-	13
Total comprehensive income for the period	-	-	-	64	-	10,926	10,990
Dividends	-	-	-	-	-	(8,112)	(8,112)
Issue of shares	16	1,918	-	-	-	-	1,934
Own shares acquired in the period	-	-	(5,462)	-	-	-	(5,462)
Share-based payments	-	-	-	-	-	783	783
Current tax charge on share-based payments	-	-	-	-	-	(30)	(30)
Deferred tax credit on share-based payments	-	-	-	-	-	21	21
Balance at 27 March 2011	2,286	115,530	(5,563)	4,126	4,562	20,799	141,740

53 week period ended 30 September 2011
Balance at 26 September 2010	2,270	113,612	(101)	4,062	4,562	17,211	141,616
Profit for the period	-	-	-	-	-	14,101	14,101
Other comprehensive income for the period
Deferred and current tax on other comprehensive income	-	-	-	56	-	(719)	(663)
Actuarial profit on defined benefit pension scheme	-	-	-	-	-	2,766	2,766
Exchange differences on translation of foreign operations	-	-	-	-	-	(83)	(83)
Total comprehensive income for the period	-	-	-	56	-	16,065	16,121
Dividends	-	-	-	-	-	(16,286)	(16,286)
Issue of shares	135	2,416	-	-	18,388	-	20,939
Own shares acquired in the period	-	-	(10,585)	-	-	-	(10,585)
Share-based payments	-	-	-	-	-	3,029	3,029
Current tax credit on share-based payments	-	-	-	-	-	(124)	(124)
Deferred tax charge on share-based payments	-	-	-	-	-	75	75
Balance at 30 September 2011	2,405	116,028	(10,686)	4,118	22,950	19,970	154,785

Condensed Consolidated Balance Sheet

As at 31 March 2012

		Unaudited as at 31 March 2012	Unaudited as at 27 March 2011	Audited as at 30 September 2011
	Note	£'000	£'000	£'000
Assets
Non-current assets
Intangible assets	10	111,306	92,493	115,805
Property, plant and equipment	11	15,765	17,651	15,869
Available-for-sale investments	12	6,074	6,127	6,087
Other receivables		2,289	2,455	2,377
Deferred tax asset		2,229	1,241	559
Total non-current assets		137,663	119,967	140,697
Current assets
Trading investments	12	812	817	744
Trade and other receivables		305,918	370,404	242,492
Cash and cash equivalents		64,663	72,322	85,702
Total current assets		371,393	443,543	328,938
Total assets		509,056	563,510	469,635

Liabilities
Current liabilities
Bank overdrafts		401	1,926	672
Trade and other payables		313,617	385,041	267,819
Current tax liabilities		2,341	4,512	1,390
Provisions	13	4,895	5,031	5,931
Shares to be issued including premium	14	6,675	6,658	6,541
Total current liabilities		327,929	403,168	282,353
Net current assets		43,464	40,375	46,585

Non-current liabilities
Retirement benefit obligation	15	9,224	7,707	7,101
Deferred purchase consideration		1,611	2,127	2,556
Provisions	13	-	16	-
Shares to be issued including premium	14	15,249	8,752	22,840
Total non-current liabilities		26,084	18,602	32,497
Total liabilities		354,013	421,770	314,850
Net assets		155,043	141,740	154,785

EQUITY
Called up share capital	16	2,450	2,286	2,405
Share premium account	16	121,780	115,530	116,028
Own shares		(12,463)	(5,563)	(10,686)
Revaluation reserve		4,230	4,126	4,118
Merger reserve		22,950	4,562	22,950
Profit and loss account		16,096	20,799	19,970
Equity attributable to equity holders of the parent		155,043	141,740	154,785

Condensed Consolidated Cash Flow Statement

26 week period ended 31 March 2012

		Unaudited 26 weeks to 31 March 2012	Unaudited 26 weeks to 27 March 2011	Audited 53 weeks to 30 September 2011
	Note	£'000	£'000	£'000
Net cash (outflow)/inflow from operating activities	17	(9,799)	(2,800)	32,858

Cash flows from investing activities
Purchase of intangible assets - client relationships		(2,697)	(4,530)	(7,946)
Purchase of intangible assets - software		(2,713)	(2,507)	(3,147)
Purchases of property, plant and equipment	11	(4,154)	(3,114)	(5,171)
Acquisition of subsidiary		-	-	5,802
Dividend received from available-for-sale investments		-	-	194
Net cash used in investing activities		(9,564)	(10,151)	(10,268)

Cash flows from financing activities
Dividends paid to equity shareholders		-	-	(16,286)
Purchase of own shares		(1,777)	(5,462)	(10,585)
Proceeds on issue of shares		372	1,934	2,436
Net cash used in financing activities		(1,405)	(3,528)	(24,435)

Net decrease in cash and cash equivalents		(20,768)	(16,479)	(1,845)

Cash and cash equivalents at the start of period		85,030	86,875	86,875
Cash and cash equivalents at the end of period		64,262	70,396	85,030


Firm's cash		42,775	48,480	64,469
Firm's overdraft		(401)	(1,926)	(672)
Firm's net cash		42,374	46,554	63,797
Client settlement cash		21,888	23,842	21,233
Net cash and cash equivalents		64,262	70,396	85,030

Cash and cash equivalents shown in current assets		64,663	72,322	85,702
Bank overdrafts		(401)	(1,926)	(672)
Net cash and cash equivalents		64,262	70,396	85,030

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

Notes to the Condensed Set of Financial Statements

1.	General information

Brewin Dolphin Holdings PLC (the "Company") is a public limited company incorporated in the United Kingdom. The shares of the Company are listed on the London Stock Exchange. The address of its registered office is 12 Smithfield Street, London EC1A 9BD. This Interim Financial Report was approved for issue on 28 May 2012.

A copy of this Interim Financial Report including Condensed Financial Statements for the 26 week period ended 31 March 2012 is available at the Company's registered office and a copy will be posted to all shareholders.

The information for the 53 week period ended 30 September 2011 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors reported on those accounts: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

2.	Accounting policies

Basis of preparation

The annual financial statements of Brewin Dolphin Holdings PLC are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

The condensed set of financial statements included in this Interim Financial Report for the 26 week period ended 31 March 2012 should be read in conjunction with the annual audited financial statements of Brewin Dolphin Holdings PLC for the 53 week period ended 30 September 2011.

The condensed set of financial statements included in this Interim Financial Report has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting", as adopted by the European Union and the Interim Financial Report has been prepared in accordance with the Disclosure and Transparency Rules (DTR) of the Financial Services Authority.

Going concern

The Directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly they continue to adopt the going concern basis in preparing the condensed financial statements.

Changes in accounting policy and disclosure

The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statements as applied in the Group's latest annual audited financial statements for the 53 week period ended 30 September 2011.

3.	Related party transactions

There have been no changes to related party transactions that could have a material effect on the financial position or performance of the Group that were disclosed in the 2011 Annual Report and Accounts available via our website www.brewin.co.uk. Transactions between the Company and its subsidiaries have been eliminated on consolidation and are not disclosed. There were no other transactions with related parties which were not part of the Group during the period, with the exception of remuneration paid to key management personnel.

4.	Principal risks and uncertainties

The Directors consider that the nature of the principal risks and uncertainties which may have a material effect on the Group's performance during the remainder of its financial year remain unchanged from those identified on page 14 of the 2011 Annual Report and Accounts available via our website www.brewin.co.uk.

The principal risk to the business remains adverse movements in the market in the short term. The other major financial and non financial risks identified in the 2011 Annual Report and Accounts were:

Risk Type	Risk
Credit risk	Counterparty risk
Earnings risk	Loss of client facing staff
Interest rate risk	Interest rate risk
Liquidity risk	Bank default and other systemic risk; Capital adequacy
Legal and compliance risk	Data protection; Fast changing regulatory environment; New business and product lines; Poor advice/portfolio performance (including mis-selling)
Operational and IT risk	Business continuity; Data integrity; Electronic dealing errors; Supplier Capacity; Significant strategic change; Project control
Reputational risk	Poor investment performance; adverse publicity
Settlement risk	Settlement failure
Other risk	Acquisition of new teams; Financial crime

5.	Segmental information

For management purposes since the 2 February 2012, the Group has had one business stream: Investment Management. Prior to the 2 February 2012 it had two businesses: Investment Management and Corporate Advisory & Broking which has been discontinued (see Note 18). These form the reportable segments of the Group for the period.

The Group's operations are carried out in the United Kingdom, Channel Islands and the Republic of Ireland. Income generated in the Republic of Ireland is reported as part of the Investment Management business stream. All segment income relates to external clients.

The accounting policies of the operating segments are the same as those of the Group.

26 week period ended 31 March 2012
	Continuing operations	Continuing operations	Continuing operations	Dis-continued operations
	Discretionary Portfolio Management	Advisory Portfolio Management	Total Investment Management	Corporate Advisory & Broking	Group
	£'000	£'000	£'000	£'000	£'000

Total income	91,913	39,465	131,378	1,088	132,466

Operating profit before redundancy costs, additional FSCS levy and amortisation of client relationships	13,235	5,683	18,918	(2,054)	16,864
Redundancy costs			(87)	(47)	(134)
Additional FSCS levy			(553)	-	(553)
Amortisation of client relationships			(5,954)	-	(5,954)
Operating profit			12,324	(2,101)	10,223
Finance income (net)			(4)	-	(4)
Other gains and losses			(13)	-	(13)
Cost of separation			-	(1,772)	(1,772)
Profit/(loss) before tax			12,307	(3,873)	8,434

Other Information
Capital expenditure			6,867	-	6,867
Depreciation			4,120	40	4,160
Amortisation of intangible asset - software			1,684	-	1,684
Share-based payments			1,332	-	1,332

Segment assets excluding current tax assets			509,056	-	509,056
Segment liabilities excluding current tax liabilities			351,672	-	351,672

26 week period ended 27 March 2011
	Continuing operations	Continuing operations	Continuing operations	Discontinued operations
	Discretionary Portfolio Management	Advisory Portfolio Management	Total Investment Management	Corporate Advisory & Broking	Group
	£'000	£'000	£'000	£'000	£'000

Total income	88,538	42,927	131,465	4,564	136,029

Operating profit before redundancy costs, additional FSCS levy and amortisation of client relationships	15,222	7,381	22,603	110	22,713
Redundancy costs			(577)	(12)	(589)
Additional FSCS levy			(6,058)	-	(6,058)
Amortisation of client relationships			(4,226)	-	(4,226)
Operating profit			11,742	98	11,840
Finance income (net)			156	-	156
Profit before tax			11,898	98	11,996

Other Information
Capital expenditure			5,596	25	5,621
Depreciation			4,780	67	4,847
Amortisation of intangible asset - software			1,594	38	1,632
Share-based payments			770	13	783

Segment assets excluding current tax assets			547,059	16,451	563,510
Segment liabilities excluding current tax liabilities			400,807	16,451	417,258

53 week period ended 30 September 2011
	Continuing operations	Continuing operations	Continuing operations	Discontinued operations
	Discretionary Portfolio Management	Advisory Portfolio Management	Total Investment Management	Corporate Advisory & Broking	Group
	£'000	£'000	£'000	£'000	£'000

Total income	180,518	83,495	264,013	10,346	274,359

Operating profit before redundancy costs, additional FSCS levy, acquisition of subsidiary costs and amortisation of client relationships	26,767	12,381	39,148	1,204	40,352
Additional FSCS levy			(6,058)	-	(6,058)
Redundancy costs			(1,008)	(12)	(1,020)
Acquisition of subsidiary costs			(228)	-	(228)
Amortisation of client relationships			(10,486)	-	(10,486)
Operating profit			21,368	1,192	22,560
Finance income (net)			521	-	521
Other gains and losses			(27)	-	(27)
Costs of separation			-	(2,393)	(2,393)
Profit/(loss) before tax			21,862	(1,201)	20,661

Other Information
Capital expenditure			8,287	31	8,318
Depreciation			8,704	131	8,835
Amortisation of intangible asset - software			3,370	76	3,446
Share-based payments			3,015	14	3,029

Segment assets excluding current tax assets			458,417	11,218	469,635
Segment liabilities excluding current tax liabilities			269,745	11,218	280,963

6.	Finance income and costs


					Unaudited 26 weeks to 31 March 2012		Unaudited 26 weeks to 27 March 2011		Audited 53 weeks to 30 September 2011
					£'000		£'000		£'000
Finance income
Dividends from available-for-sale investments					-		-		194
Interest on bank deposits					554		505		1,059
					554		505		1,253

Finance costs
Finance cost of deferred consideration					164		121		317
Interest expense on defined pension obligation					373		202		369
Interest on bank overdrafts					21		26		46
					558		349		732
7.	Taxation
		United Kingdom		Overseas tax				United Kingdom deferred tax
		Current tax	Prior period	Current tax		Prior period		Current year		Prior period	Total
		£'000	£'000	£'000		£'000		£'000		£'000	£'000


Unaudited 26 weeks to 31 March 2012
Continuing operations		3,498	556	122		-		63		(706)	3,533
Discontinued operations		(701)	-	-		-				-	(701)
		2,797	556	122		-		63		(706)	2,832

Unaudited 26 weeks to 27 March 2011
Continuing operations		4,110	419	83		-		(614)		(364)	3,634
Discontinued operations		27	-	-		-		-		-	27
		4,137	419	83		-		(614)		(364)	3,661

Audited 53 weeks to 30 September 2011
Continuing operations		6,246	422	181		-		439		(404)	6,884
Discontinued operations		(122)	-	-		-		(202)		-	(324)
		6,124	422	181		-		237		(404)	6,560

8.	Earnings per share

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

	Unaudited 26 weeks to 31 March 2012	Unaudited 26 weeks to 27 March 2011	Audited 53 weeks to 30 September 2011

Number of shares
	'000	'000	'000
Basic
Weighted average number of shares in issue in the period	235,712	225,543	226,796
Diluted
Weighted average number of options outstanding for the period	7,434	3,821	4,275
Estimated weighted average number of shares earned under deferred consideration arrangements	6,328	4,422	9,464
Diluted weighted average number of options and shares for the period	249,474	233,786	240,535

Earnings attributable to ordinary shareholders
Continuing operations
	£'000	£'000	£'000
Profit for the period from continuing operations	8,774	8,263	14,978
Redundancy costs	87	577	1,008
less tax	(22)	(156)	(272)
Additional FSCS levy	553	6,058	6,058
less tax	(138)	(1,636)	(1,636)
Acquisition of subsidiary	-	-	228
Amortisation of intangible assets - client relationships	5,954	4,226	10,486
less tax	(1,488)	(1,141)	(2,831)
Adjusted basic profit for the period and attributable earnings excluding redundancy costs, additional FSCS levy, acquisition of subsidiary costs and amortisation of client relationships	13,720	16,191	28,019



Profit for the period from continuing operations	8,774	8,263	14,978
Finance costs of deferred consideration (Note a)	95	50	237
less tax	(24)	(14)	(64)
Adjusted fully diluted profit for the period and attributable earnings	8,845	8,299	15,151
Redundancy costs	87	577	1,008
less tax	(22)	(156)	(272)
Additional FSCS levy	553	6,058	6,058
less tax	(138)	(1,636)	(1,636)
Acquisition of subsidiary	-		228
Amortisation of intangible assets - client relationships	5,954	4,226	10,486
less tax	(1,488)	(1,141)	(2,831)
Adjusted fully diluted profit for the period and attributable earnings excluding redundancy costs, additional FSCS levy, acquisition of subsidiary costs and amortisation of client relationships	13,791	16,227	28,192

From continuing operations

Basic	3.7p	3.7p	6.6p
Diluted	3.5p	3.5p	6.3p


From continuing operations excluding redundancy costs, additional FSCS levy, acquisition of subsidiary costs and amortisation of client relationships
Basic	5.8p	7.2p	12.4p
Diluted	5.5p	6.9p	11.7p

a) Finance costs of deferred consideration are added back where the issue of shares is more dilutive than the interest cost saved.

	Unaudited 26 weeks to 31 March 2012	Unaudited 26 weeks to 27 March 2011	Audited 53 weeks to 30 September 2011
Earnings attributable to ordinary shareholders
Continuing and discontinued operations

	£'000	£'000	£'000
Profit for the period from continuing and discontinued operations	5,602	8,335	14,101
Redundancy costs	134	589	1,020
less tax	(34)	(159)	(275)
Additional FSCS levy	553	6,058	6,058
less tax	(138)	(1,636)	(1,636)
Acquisition of subsidiary	-	-	228
Amortisation of intangible assets - client relationships	5,954	4,226	10,486
less tax	(1,488)	(1,141)	(2,831)
Adjusted basic profit for the period and attributable earnings excluding redundancy costs, additional FSCS levy, acquisition of subsidiary costs and amortisation of client relationships	10,583	16,272	27,151



Profit for the period	5,602	8,335	14,101
Finance costs of deferred consideration (Note a above)	95	50	236
less tax	(24)	(14)	(64)
Adjusted fully diluted profit for the period and attributable earnings	5,673	8,371	14,273
Redundancy costs	134	589	1,020
less tax	(34)	(159)	(275)
Additional FSCS levy	553	6,058	6,058
less tax	(138)	(1,636)	(1,636)
Acquisition of subsidiary	-	-	228
Amortisation of intangible assets - client relationships	5,954	4,226	10,486
less tax	(1,488)	(1,141)	(2,831)
Adjusted fully diluted profit for the period and attributable earnings excluding redundancy costs, additional FSCS levy, acquisition of subsidiary costs and amortisation of client relationships	10,654	16,308	27,323

The denominators used are the same as those detailed above for both basic and diluted earnings from continuing operations

From continuing and discontinued operations
Basic	2.4p	3.7p	6.2p
Diluted	2.3p	3.6p	5.9p

From continuing and discontinued operations excluding redundancy costs, additional FSCS levy, acquisition of subsidiary costs and amortisation of client relationships
Basic	4.5p	7.2p	12.0p
Diluted	4.3p	7.0p	11.4p

From discontinued operations
The denominators used are the same as those detailed above for both basic and diluted earnings from continuing operations

Basic	(1.3p)	0.0p	(0.4p)
Diluted	(1.2p)	0.1p	(0.4p)

Dividends

	Unaudited 26 weeks to 31 March 2012	Unaudited 26 weeks to 27 March 2011	Audited 53 weeks to 30 September 2011
	£'000	£'000	£'000
Amounts recognised as distributions to equity shareholders in the period:

Final dividend paid 10 April 2012*, 3.55p per share (2011: 3.55p per share)	8,412	8,112	7,989
Interim dividend paid 22 September 2011, 3.55p per share	-	-	8,297
	8,412	8,112	16,286
* approved at Annual General Meeting on 24 February 2012
An interim dividend of 3.55p per share was declared by the Board on 28 May 2012 and has not been included as a liability as at 31 March 2012. This interim dividend will be paid on 21 September 2012 to shareholders on the register at the close of business on 24 August 2012 with an ex-dividend date of 22 August 2012.

10.	Intangible assets

	Goodwill	Client relationships	Software development costs	Purchased software	Total
	£'000	£'000	£'000	£'000	£'000

Cost
At 26 September 2010	48,637	54,802	866	10,204	114,509
Additions	-	4,226	214	2,293	6,733
Revaluation of shares to be issued and deferred purchase consideration in respect of acquisitions in prior periods	-	504	-	-	504
At 27 March 2011	48,637	59,532	1,080	12,497	121,746
Additions	-	26,206	54	586	26,846
Revaluation of shares to be issued and deferred purchase consideration in respect of acquisitions in prior periods	-	4,747	-	-	4,747
At 30 September 2011	48,637	90,485	1,134	13,083	153,339
Additions	-	3,465	86	2,627	6,178
Revaluation of shares to be issued and deferred purchase consideration in respect of acquisitions in prior periods	-	(3,039)	-	-	(3,039)
At 31 March 2012	48,637	90,911	1,220	15,710	156,478



Accumulated amortisation and impairment
At 26 September 2010	-	20,913	196	2,286	23,395
Amortisation charge for the period	-	4,226	125	1,507	5,858
Impairment losses for the period	-	-	-	-	-
At 27 March 2011	-	25,139	321	3,793	29,253
Amortisation charge for the period	-	6,260	137	1,677	8,074
Impairment losses for the period	-	207	-	-	207
At 30 September 2011	-	31,606	458	5,470	37,534
Amortisation charge for the period	-	5,954	149	1,535	7,638
Impairment losses for the period	-	-	-	-	-
At 31 March 2012	-	37,560	607	7,005	45,172


Net book value
At 26 September 2010	48,637	33,889	670	7,918	91,114
At 27 March 2011	48,637	34,393	759	8,704	92,493
At 30 September 2011	48,637	58,879	676	7,613	115,805
At 31 March 2012	48,637	53,351	613	8,705	111,306

11.	Property, plant and equipment

During the period the Group spent £1.2 million (26 weeks to 27 March 2011: £0.3 million, 53 weeks to 30 September 2011: £0.6 million) on leasehold improvements, £1.5 million (26 weeks to 27 March 2011: £1.3 million, 53 weeks to 30 September 2011: £2.3 million) on computer equipment and £1.4 million (26 weeks to 27 March 2011: £1.5 million, 53 weeks to 30 September 2011: £2.2 million) on office equipment.

12.	Investments

Available-for-sale investments
	Listed investments	Unlisted investments	Total
	£'000	£'000	£'000
Fair value

At 31 March 2012	74	6,000	6,074

At 27 March 2011	127	6,000	6,127

At 30 September 2011	87	6,000	6,087

The listed available-for-sale investment is in PLUS Markets Group PLC and was a strategic investment designed to reduce the then monopoly of the London Stock Exchange.

The unlisted available-for-sale investment in Euroclear plc is as a result of a £431,000 strategic investment in Crest, the London based settlement system. Crest was taken over by Euroclear plc and the resultant stake in Euroclear plc was 0.52% of its share capital or 19,899 ordinary shares. As at 30 September 2011 the Directors updated their valuation of the Group's holding in Euroclear plc; the valuation is £6 million (27 March 2011: £6 million, 30 September 2011: £6 million). This valuation takes into account dividend yield and the prices of similar quoted companies.

Trading investments
	Listed investments	Unlisted investments	Total
	£'000	£'000	£'000
Fair value

At 31 March 2012	812	-	812

At 27 March 2011	817	-	817

At 30 September 2011	744	-	744

Investments are measured at fair value which is determined directly by reference to published prices in an active market where available.

13.	Provisions
		Unaudited 26 weeks to 31 March 2012	Unaudited 26 weeks to 31 March 2012	Unaudited 26 weeks to 31 March 2012	Unaudited 26 weeks to 27 March 2011	Audited 53 weeks to 30 September 2011
		£'000	£'000	£'000	£'000	£'000
		Sundry claims and associated costs	Vacant Property	Total	Total	Total
At start of period		5,875	56	5,931	5,464	5,464
Additions		1,004	-	1,004	1,181	2,109
Utilisation of provision		(597)	(26)	(623)	(1,411)	(1,273)
Unused amounts reversed during the period		(1,417)	-	(1,417)	(187)	(369)
At end of period		4,865	30	4,895	5,047	5,931

Provisions
Included in current liabilities		4,865	30	4,895	5,031	5,931
Included in non-current liabilities		-	-	-	16	-
		4,865	30	4,895	5,047	5,931

Provisions relate to sundry claims against the Group and the future cost of vacant property. Where there are sundry claims against the Group the estimated liability has been included above with the related insurance debtor of £nil (27 March 2011: £399,000, 30 September 2011: £nil) included in trade and other receivables. The timing of settlements cannot be accurately forecast; settlement of £nil (27 March 2011: £nil, 30 September 2011: £nil) has been made since the balance sheet date.

14.	Shares to be issued including premium and other deferred purchase liabilities

The Group acquires investment businesses and teams of investment managers, bringing with them funds under management (the latter classified as the intangible asset client relationships) on deferred purchase terms based on the value of income introduced over, normally, a three year period. The payment is normally made in ordinary shares and these shares typically have to be held for a further three years. At the discretion of the Board these shares can be purchased in the market rather than issued. The estimated likely cost of these shares has been updated at the half year in light of actual results of previously acquired business teams and to include new acquisitions.

15.	Retirement benefit obligation

The main financial assumptions used in calculating the Group's retirement benefit obligation are as follows:

	As at 31 March 2012	As at 27 March 2011	As at 30 September 2011
Discount rate	4.70%	5.50%	5.10%
Rate of inflation (RPI)	4.70%	3.40%	3.40%
Rate of inflation (CPI)	2.35%	n/a	2.25%
Salary increases	3.10%	3.40%	3.00%
Rate of increase to pensions in payment	3.10%	3.40%	3.00%
Expected return on equities	7.00%	7.50%	7.00%
Expected return on bonds	4.00%	4.50%	4.00%
Expected return on other assets	0.50%	0.50%	0.50%


Average assumed life expectancies for members on retirement at age 65
Existing pensioners
Males	87.5 years	87.5 years	87.5 years
Females	89.0 years	88.9 years	88.9 years
Future pensioners
Males	88.7 years	88.6 years	88.6 years
Females	90.1 years	90.1 years	90.1 years

A full actuarial valuation was carried out as at 31 December 2008 and the results of this valuation have been updated to 31 March 2012 by a qualified independent actuary.

16.	Called up share capital

The following movements in share capital occurred during the period:

	Date	No. of Fully Paid Shares	No. of Nil Paid Shares	Exercise/ Issue Price (pence)	Called up share capital	Share premium account	Total
					£'000	£'000	£'000
At 30 September 2011		240,607,878	2,712,702		2,405	116,028	118,433
Settlement of deferred consideration	8 December 2011	4,131,553	-	131.3p	42	5,383	5,425
Issue of options	Various	231,840	-	37.5p - 148p	2	230	232
Nil paid shares now paid up	Various	133,117	(133,117)	103.3p - 184.5p	1	148	149
Cost of issue of shares		-	-		-	(9)	(9)
At 31 March 2012		245,104,388	2,579,585		2,450	121,780	124,230

17.	Note to the cash flow statement
		Unaudited 26 weeks to 31 March 2012	Unaudited 26 weeks to 27 March 2011	Audited 53 weeks to 30 September 2011
		£'000	£'000	£'000
Group
Operating profit from continuing operations		12,324	11,742	21,368
(Loss)/profit for the period from discontinued operations (Note 18)		(3,873)	98	(1,201)
Adjustments for:
Depreciation of property, plant and equipment		4,160	4,847	8,835
Amortisation of intangible assets - client relationships		5,954	4,226	10,486
Amortisation of intangible assets - software		1,684	1,632	3,446
Loss on disposal of property, plant and equipment		98	-	-
Intangible asset impairment		-	-	207
Retirement benefit obligation		(1,124)	(1,290)	(2,631)
Share-based payment cost		1,334	783	3,029
Translation adjustments		(66)	-	(83)
Unwind of discount of shares to be issued and deferred purchase consideration		164	121	317
Interest income		554	505	1,059
Interest expense		(558)	(349)	(732)
Operating cash flows before movements in working capital		20,651	22,315	44,100
Increase/(decrease) in payables and trading investments		35,480	18,794	(91,996)
(Increase)/decrease in receivables and trading investments		(63,375)	(39,316)	90,465
Cash (used)/generated by operating activities		(7,244)	1,793	42,569
Tax paid		(2,555)	(4,593)	(9,711)
Net cash (outflow)/inflow from operating activities		(9,799)	(2,800)	32,858

Cash and cash equivalents comprise cash at bank and bank overdrafts.

18.	Discontinued Operations

The Group's operating subsidiary, Brewin Dolphin Limited, signed an agreement on 11 May 2011 for the disposal of its Corporate Advisory and Broking Division to a new partnership called N+1 Brewin. The disposal was completed on 1 February 2012.

The Group received a 14% preferred interest in N+1 Brewin which has been valued at £nil.

The Corporate Advisory and Broking Division represented a reportable segment of the Group and the effect of the discontinued operation on segment results is disclosed in Note 5.

The results of the discontinued operations, which have been included in the consolidated income statement, were as follows:

	Unaudited 26 weeks to 31 March 2012	Unaudited 26 weeks to 27 March 2011	Audited 53 weeks to 30 September 2011
	£'000	£'000	£'000

Revenue	1,088	4,564	10,346
Expenses	(3,189)	(4,466)	(9,154)
Operating profit	(2,101)	98	1,192
Costs of separation	(1,772)	-	(2,393)
Profit before tax	(3,873)	98	(1,201)
Attributable tax	701	(27)	324
Net (loss)/profit attributable to discontinued operations (attributable to the owners of the Company)	(3,172)	71	(877)

During the period the division contributed a net cash outflow of £3.6m (26 weeks to 27 March 2011: £0.1 million inflow, 53 weeks to 30 September 2011: £1.1 million outflow) to the Group's net operating cash flows.

Funds

(Unaudited)

	At 31 March 2012	At 27 March 2011	At 30 September 2011
	£ Billion	£ Billion	£ Billion
In Group's nominee or sponsored member	17.0	15.2	15.3
Stock not held in Group's nominee	0.3	0.3	0.3
Discretionary funds under management	17.3	15.5	15.6

In Group's nominee or sponsored member	7.3	8.0	7.2
Other funds where valuations are carried out but where the stock is not under the Group's control	1.1	1.5	1.2
Advisory funds under management	8.4	9.5	8.4

Managed funds	25.7	25.0	24.0


In Group's nominee or sponsored member	5.0	4.4	4.1
Stock not held in Group's nominee	0.3	0.4	0.3
Execution only stock	5.3	4.8	4.4

Total funds	31.0	29.8	28.4

Stock
In Group's nominee or sponsored member	29.3	27.6	26.6
Stock not held in Group's nominee	1.7	2.2	1.8
	31.0	29.8	28.4

Responsibility Statement

The Directors confirm that to the best of their knowledge:

the condensed set of financial statements has been prepared in accordance with IAS 34 "Interim Financial Reporting";

the interim management report* includes a fair view of the information required by Disclosure and Transparency Rules (DTR) 4.2.7 R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

the interim management report* includes a fair view of the information required by DTR 4.2.8 R (disclosures of related parties' transactions and changes therein).

*encompassed within the Executive Chairman's Statement

By order of the Board

J Matheson

R A Bayford

Executive Chairman

28 May 2012

Finance Director

Independent Review Report

Independent Review Report to Brewin Dolphin Holdings PLC

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the 26 week period ended 31 March 2012 which the condensed consolidated income statement, the condensed consolidated statement of comprehensive income, the condensed consolidated statement of changes in equity, the condensed consolidated balance sheet, the condensed consolidated cash flow statement and related notes 1 to 18. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 2, the annual financial statements of the company are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting," as adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the 26 week period ended 31 March 2012 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

Deloitte LLP

Chartered Accountants and Statutory Auditor

London, United Kingdom

28 May 2012

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR LLFITEIITFIF

Related Shares:

FTSE 100 Latest

Value8,798.91

Change63.31