Interim Management Report

This announcement contains inside information for the purposes of the Market Abuse Regulation (596/2014/EU).

11 May 2022

Brewin Dolphin Holdings PLC

Interim Management Report

For the Half Year Ended 31 March 2022

Strong organic fund inflows of £1.9bn

Recommended offer

- On 31 March 2022, RBC Wealth Management (Jersey) Holdings Ltd1 announced a recommended cash acquisition of Brewin Dolphin Holdings PLC for 515p per share.

- The acquisition is conditional on shareholder and regulatory approvals and is expected to complete by the end of calendar Q3 2022.

H1 financial highlights

- Gross discretionary inflows of £1.9bn (H1 2021: £1.6bn) show continued organic growth driven by our advice-focused strategy and broad range of propositions and investment solutions.

- Total discretionary net flows of £1.0bn (annualised growth rate of 4.0%).

o  MPS/ Voyager H1 net flows of £0.5bn (annualised growth rate 16.4%).

o  Direct client retention rates increased to 99% in H1 2022 (FY 2021: 97%).

- Total funds for the first half were broadly flat at £56.3bn (FY 2021: £56.9bn) due to volatile market performance driven by the conflict in Ukraine and the macroeconomic environment. Total discretionary funds were broadly flat in the first half and up 8.1% year-on-year at £49.4bn (FY 2021: £49.8bn; H1 2021: £45.7bn).

- Total income increased by 4.8% year-on-year to £209.5m (H1 2021: £199.9m), driven by higher fund levels year-on-year partly offset by normalised levels of commission, as expected.

o  Financial planning income grew 24.6% year-on-year to £23.8m (H1 2021: £19.1m); driven by higher fund levels year-on-year and continued demand for our advice-focused services.

o  Direct discretionary commission income was down 15.4% year-on-year at £32.3m (H1 2021: £38.2m), as expected.

- Adjusted profit before tax2 increased 2.3% to £48.1m (H1 2021: £47.0m).

- Strong cash balance of £139.8m (H1 2021: £145.8m) and capital adequacy ratio of 210%.

- Following the announcement of the recommended offer for the Company, the Board is not recommending an interim dividend.

Delivering on our strategic priorities

- Parallel running of the custody and settlement systems, full functionality of the new system by the end of the summer this year.

- Built and integrated a central sales function, establishing and supporting client leads across the direct business.

- Voyager funds reached £0.5bn, a year and a half after launch.

- A year into our operational excellence programme; accounts opened c.80% faster.

Outlook

- Whilst markets remain volatile, our strong inflows and resilient advice-focused strategy gives us confidence in our full year outlook.

- No change to our opex guidance of mid-high single digit percent growth. 

- Full year capex guidance changed to c.£32m from c.£26m, of which c.£26m is on our custody and settlement system. The cost increase on our custody and settlement system is driven by higher than expected inflationary pressure on technology costs and delivery now set to the end of summer, as we continue to focus on mitigating any implementation risks.

NOTES:

1. An indirect wholly-owned subsidiary of Royal Bank of Canada ("RBC").

2. See note 20.

3. See note 7.

Robin Beer, Chief Executive Officer, said:

"We continued to see strong inflows across both our direct and indirect discretionary funds throughout the first half, with a record first quarter performance despite the volatility in the markets driven by macroeconomic and geopolitical challenges. The resilience in our organic growth, demonstrates our strategy of being an advice-focused wealth manager, supported by our broad range of propositions and investment solutions, is the right one. The business is preparing for the final stage of dress rehearsals and training on our new custody and settlement system and the switch over of systems will be completed at the end of the summer this year.

We believe that the proposed acquisition by RBC will bring new and exciting opportunities for our clients and people. Whilst the transaction is still to complete, we remain focused on delivering our strategic priorities for the year, which will enable us to become a leading advice-focused digitally enabled wealth manager."

For further information:

Brewin Dolphin Holdings PLC

Carla Bloom, Head of Investor Relations

Tel: +44 (0)20 7248 4400

[email protected]

Camarco

Ben Woodford / Geoffrey Pelham-Lane

Tel: +44 (0) 799 065 3341 / +44 (0) 773 312 4226

The Interim Results presentation will be held at 9.00am on 11 May 2022 and available to watch via an audio webcast. The audio

link can be found on the corporate website (www.brewin.co.uk/group/investor-relations). Investors and analysts are also able to

dial in to the call using UK & International: +44 (0) 33 0551 0200 or UK toll-free: 0808 109 0700

Publication of H1 2022 results documents available on the offer website

A copy of this announcement and the documents required to be published pursuant to Rule 26.1 and Rule 26.2 of the City Code on Takeovers and Mergers (the "Code") will be made available (subject to certain restrictions relating to persons resident in Restricted Jurisdictions (as defined in the Scheme Document)), free of charge, at www.brewin.co.uk/RBCoffer by no later than 12 noon on the Business Day following the date of this announcement.

Neither the contents of the website nor the content of any other website accessible from hyperlinks on such website is incorporated into, or forms part of, this announcement.

LEI: 213800PS7FS5UYOWAC49

NOTES TO EDITORS:

About Brewin Dolphin:

Brewin Dolphin is one of the UK and Ireland's leading independent providers of discretionary wealth management. We continue to focus on discretionary investment management, and we manage £49.4 billion of funds on a discretionary basis. In line with the premium we place on personal relationships, we have built a network of offices across the UK, Channel Islands and the Republic of Ireland, staffed by qualified investment managers and financial planners. We are committed to the most exacting standards of client service, with long-term thinking and absolute focus on our clients' needs at the core.

Interim Management Report

To the members of Brewin Dolphin Holdings PLC

First half review

Business and operational review

In November 2020, we set out our 2025 ambition, which is to become a leading advice-focused, digitally enabled wealth manager in the UK and Ireland. For us to achieve this, we aligned our strategic priorities to: remain 'Relevant', become more 'Efficient', which combined will drive attractive levels of 'Growth' validated through our results. All of these are underpinned by a culture we are proud of.

Delivering our strategic priorities

1. Relevant

In the modern consumer world, being relevant is critical. We want to create the most relevant wealth offering in the marketplace and to deliver it through digital capabilities, combined with personal contact.

Learning from our successful sales function within our intermediaries business, in the first half of the year, we built and integrated a "spectrum of yes" sales function across the direct business, which is supporting client leads. It is an extension of our marketing function and is aiding the expansion of our distribution channels. The sales function is also supporting our business-to-business partnership initiative we piloted last year with corporates, which enables us to build further strategic partnerships across our footprint and expand our reach across a broad range of sectors.

We continue to develop our business-to-business partnership strategy, building on our propositions and exploring strategic partnerships in the financial education and wellbeing space. We now have relationships with 37 corporates (up from 33 at FY 2021), from small to large-scale businesses, and have been able to reach further during the pandemic hosting over 110 virtual webinars with around 4,000 attendees.

We continue to expand our investment solutions for both direct and indirect clients. In the half, we launched MI Select Managers (MISM) Alternative Fund, adding an underlying investment solution to our successful MPS and Voyager fund range. The new alternative fund invests in property, commodities, and absolute return to offer diversification to our intermediaries clients' portfolios and to counter market volatility.

2. Efficient

To drive efficiency through our business, we need to deliver our services with speed and convenience to clients, increase our adviser capacity and improve our operating model.

Our new custody and settlement system has been live since December 2021, and we have continued to run both the old and new system in parallel. During the first half of the year, we have focused on integrating the automated interfaces between our client management and trading systems. The integration build will be completed shortly and then we will move to the final phase of dress rehearsals and training, to ensure our staff and our technology are ready for the full switch-over to the new system. With only a few months to go before we complete the implementation, we now expect that the switch-over will occur at the end of summer. As we have done throughout the project, we continue to focus on mitigating any implementation risks, and this additional time will facilitate this.

Our operational excellence programme was established in 2021 to help us drive operational efficiencies across the business. A year in and the programme is fully embedded and already achieving efficiencies across the business; account openings are completed c.80% faster, a 20% improvement in the time taken to complete a client transfer and a c.12% improvement in productivity within Operations. We expected the programme to deliver cost benefits of c.£1m for the full year 2022. We have already delivered cost benefits of £0.9m in H1 2022 and believe there is further potential upside that could be achieved this year. As such, we remain confident in achieving our FY 2022 target, and we reiterate our c.£10m FY 2023 target.

Outlook

Our consistent performance against the backdrop of the macro and geopolitical challenges over the last few months gives us confidence that our business model is resilient, and our advice-focused strategy is the right one. In times of uncertainty, our trusted brand is even more valuable. We believe that the proposed acquisition by RBC will bring new and exciting opportunities for our clients and people. Whilst the transaction is still to complete, we remain focused on delivering our strategic priorities for the year, which will enable us to become a leading advice-focused digitally enabled wealth manager.

Financial results and performance

Statutory profit before tax for the period was £38.4m (H1 2021: £40.7m). Adjusted profit before tax of £48.1m was 2.3% higher than the first six months last year (H1 2021: £47.0m). Income was 4.8% higher as a result of investment performance and strong flows which withstood the market volatility. As expected, operating costs excluding adjusted items were 5.7% higher due to inflationary increases, headcount growth to support business growth and the completion of our technology transformation, increased marketing and travel and entertainment as COVID-19 restrictions disappeared and colleagues could meet clients face to face again.

Adjusted items of £9.7m for the period includes the impact of accounting for the Employer's National Insurance provision for share awards attributable to the higher share price following the announcement of the proposed acquisition by RBC and higher costs for incentivisation awards for acquisitions completed in FY 2019.

1. See note 20.

2. See note 7.

Funds

Total funds were £56.3bn at 31 March 2022 (H1 2021: £52.6bn, FY 2021: £56.9bn). The movement was driven by strong net flows of £1.0bn (H1 2021: £0.8bn, H2 2021: £1.3bn). Investment performance was impacted by weak global equity markets experienced in Q2 2022, reducing the overall value of funds by £1.6bn. Our client funds had a lower level of exposure to commodities which saw an unprecedented rise in the period, while 'growth' strategies that have contributed to historical outperformance sold off, explaining the divergence in performance against the benchmarks in the period.

Total funds by service category

Funds flow by service category for H1 20221

Funds flow by service category for Q2 20221

1. The funds figures are rounded to one decimal place and therefore may not always cast.

2. Internal transfers for execution only, include discretionary fund pending exits.

Total discretionary funds were £49.4bn as at 31 March 2022 (H1 2021: £45.7bn, FY 2021: £49.8bn) with net flows of £1.0bn (H1 2021: £0.6bn), representing an annualised growth rate of 4.0%. Inflows were £1.9bn over the period, resilient to the market volatility and macroeconomic uncertainty, and outflows remained stable at £0.6bn. Our broad range of propositions and investment solutions, through our direct and indirect channels has supported the resilience of our net flows. Market volatility has impacted investment performance and this can be seen in the movement of the funds over the period. As at 31 March 2022, investment performance was £(1.4)bn, with a £(2.9)bn movement in the last 3 months of the period.

Direct discretionary net flows were £0.3bn in the period (H1 2021: £0.1bn). The momentum seen in the last three quarters in FY 2021 continued in the half year period, inflows were £0.9bn (H1 2021: £0.7bn), c.70% of these were from new clients. Continued demand for our advice-led services is supporting this growth, with c.60% of private clients taking advice. Outflows remained stable and were in line with H1 2021 at £0.3bn, direct client retention improved to 99%.

Indirect discretionary net flows were £0.7bn in the period (H1 2021: £0.5bn) with c.70% of net flows coming from MPS and Voyager. Voyager fund flows have performed strongly in the period, funds have grown to £0.5bn since their launch in early FY 2021. Interest in Sustainable MPS continues, and c.5% of our intermediaries have funds in this range.

Income

Income increased 4.8% to £209.5m compared to the same period last year (H1 2021: £199.9m), driven by the higher market level in Q1 2022, strong net flows and growth in financial planning income. This increase was marginally offset by commission which was lower in the period, in line with expectations and guidance issued in November 2021.

Total discretionary income increased by 2.5% to £173.8m (H1 2021: £169.5m). Income was broadly stable across the period with a slight mix change between the two quarters; fee income was higher in the first quarter owing to the higher value of funds and commission was seasonally higher in the second quarter.

Financial planning income grew 24.6% to £23.8m (H1 2021: £19.1m) driven by higher market levels in Q1 2022 and continued demand for our advice-focused services including 1762 from Brewin Dolphin proposition.

Other income which includes interest, expert witness report writing income and rental income was up £0.5m to £2.2m. This increase was driven largely by higher expert witness report writing income of £1.0m (H1 2021: £0.8m) generated by Mathieson Consulting.

Total discretionary margin decreased to 68.5bps (H1 2021: 74.8bps). As anticipated, commission margin was lower at 12.9bps (H1 2021: 17.1bps) due to the normalising of trading activities to pre-COVID-19 levels. Direct discretionary fee margin decreased marginally to 59.5bps (H1 2021: 60.4bps) and the advice margin was up to 11.3bps (H1 2021: 9.9bps), reflecting the mix change towards our advice-led offering. Intermediaries margin decreased to 63.0bps (H1 2021: 66.0bps) mainly due to the tiering effect as both size of our intermediaries' relationships and client portfolios grow on our platforms.Operating costs

1. See table below and note 20.

1. Acquisition costs for the 6 months to 31 March 2022 relate to the proposed takeover of Brewin Dolphin Holdings PLC and include professional costs (£0.5m) and the resulting increase in the Employer's National Insurance provision for share awards (£1.6m).

In line with our expectations, total operating costs before adjusted items were 5.7% higher at £160.6m (H1 2021: £152.0m), driven by the fixed cost base primarily as a result of continued investment to support growth, parallel running costs of our custody and settlement systems and inflation. We were able to offset some of these cost increases with our operational excellence programme delivering cost benefits of £0.9m in H1 2022.

Fixed costs increased by £8.0m to £122.3m (H1 2021: £114.3m). Staff costs grew 4.4% to £77.6m with £4.4m of the increase attributable to planned hires to support our strategy and strong growth, £1.0m to inflationary pay rises, offset by £0.4m in savings from our ongoing operational excellence programme and a reduction of £2.5m in the holiday accrual charge due to employees not being able to take holidays in the prior year because of travel restrictions. Non-staff costs were £4.7m higher as a result of £0.5m of inflationary increases, £1.5m increase in marketing events and travel and entertainment expenses following the end of social distancing, £0.9m increase in costs in Ireland most of which was regulatory-related, and £1.2m increased spend on project costs some of which is related to the operational excellence programme including workforce planning and operational improvement tools.

Variable staff costs of £38.3m (H1 2021: £37.7m), most of which is related to the discretionary profit share, is marginally higher driven by the increase in income and profit growth. Variable staff costs are provided for on an accrual basis and are based on the first half financial performance, the impact of higher numbers of eligible staff and the historical cost of share-based awards.

Adjusted items in the period were £9.7m (H1 2021: £6.3m) and is predominantly comprised of the amortisation of intangible client relationships of £5.6m, similar to H1 2021. Other significant adjusted items in the period were £2.1m of acquisition costs which includes professional fees of £0.5m relating to the proposed takeover of Brewin Dolphin Holdings PLC and the accounting for the £1.6m for the Employer's National Insurance provision for share awards relating to the share price increase in the period. See Note 20 for an explanation of the adjusted items.

Our operating cost guidance of mid-single digit percent growth remains on track. The holiday accrual associated to the first half of the year will reduce in the second half of the year. We expect non-staff costs to increase in the second half as we incur the FSCS levy. We remain confident in achieving our FY 2022 target of c.£1m and believe there is potential further upside that could be achieved. We also reiterate our c.£10m FY 2023 target. In early May we were given access to our Cannon Street offices. At this stage we have let out all floors, except for the ground floor and the basement. As a result, we will have an additional cost of £0.5m in the second half of FY 2022. We are working with our property agents to sublet the final parts of the building.

Capital expenditure

We have continued to make progress on our strategic system and technology projects. Total capital expenditure in H1 2022 was £16.7m of which £14.6m was on our custody and settlement system. Our total capex spend to date on the custody and settlement system is £65.9m. Other capex in the period included £2.1m on enhancement of our digital capabilities. With higher than expected inflationary pressures on technology costs and the extension of our custody and settlement system implementation now set to the end of summer, we now anticipate full year capex guidance on our custody and settlement system to be c.£26m (up from c.£20m) and total capex guidance expected to be around £32m (up from c.£26m). 

Net finance costs

Finance income of £0.3m was higher than H1 2021 (£0.2m) due to higher interest rates. Finance costs were £1.1m (H1 2021: £1.1m) and primarily relate to our property leases.

Defined benefit pension scheme

The final salary pension scheme surplus has increased to £23.5m (30 September 2021: £20.8m). An actuarial gain for the period of £2.5m (2021: £0.2m) has been recognised. The main reason for the increase in the surplus is the impact of the change in investment market conditions, in particular an increase in credit spreads as at 31 March 2022 compared to 30 September 2021; this impact was partially offset by an increase in liabilities following an increase to the cash commutation factor.

Tax

The Group's effective corporation tax rate at 22.1% (H1 2021: 19.6%) is higher than the UK statutory rate of 19%, mainly as a result of the net effect of disallowable expenses and the effect of future tax rate changes on deferred tax balances.

Cash and capital

The Group's financial position remains very strong with net assets of £339.7m as at 31 March (2021: £328.6m). At 31 March 2022, the Group had regulatory capital resources of £153.0m (2021: £151.7m), representing 210% (2021: 210%) of the FCA requirement which is substantially above our risk appetite of 150%.

The Group's primary regulator is the Financial Conduct Authority ('FCA'). From 1 January 2022, the Investment Firms Prudential Regime (IFPR) replaced the existing European Banking Authority (EBA) regulations in the UK. The Overall Financial Adequacy Rule (OFAR) was established and is the obligation for an investment firm to hold own funds and liquid assets which are adequate. This will be achieved through the implementation of an Internal Capital and Risk Assessment ('ICARA') and replaces the Internal Capital Adequacy Assessment Process ('ICAAP'). The assessment will be performed at least annually. The Group's regulated entity in Europe began reporting under the new rules in June 2021 and retains strong regulatory capital resources as does the UK regulated entity following its transition to IFPR. The Group's Pillar III disclosures are published annually on our website and provide further details about regulatory capital resources and requirements.

Dividend

The Group's dividend policy is to grow dividends in line with adjusted earnings, with a target pay out ratio of between 60% to 80% of annual adjusted diluted earnings per share. As per the proposed acquisition by RBC Wealth Management (Jersey) Holdings Ltd, RBC reserves the right to reduce the consideration payable should any capital be returned to shareholders and, as such, the Board have not declared an interim dividend.

Going concern

As stated in note 2 to the condensed consolidated set of interim financial statements, the Directors believe that the Group is well placed to manage its business risks successfully. The Group's forecasts and projections, (see note 2(i) for detail) and stressed events that the Group is required to assess demonstrate that the Group has adequate resources to continue in operational existence for the foreseeable future and this assessment is unaffected by the RBC offer. Accordingly, the Directors continue to adopt a going concern basis for the preparation of the condensed consolidated interim financial statements. In forming their view, the Directors have considered the Group's prospects for a period exceeding twelve months from the date the condensed consolidated interim financial statements are approved.

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 pages 47 and 48 of the Group's 2021 Annual Report and Accounts available on our website www.brewin.co.uk.

Robin Beer

Chief Executive

10 May 2022

Condensed Consolidated Income Statement

for the six months ended 31 March 2022

The accompanying notes form an integral part of the financial statements.

for the six months ended 31 March 2022

The accompanying notes form an integral part of the financial statements.

Condensed Consolidated Balance Sheet

as at 31 March 2022

The accompanying notes form an integral part of the financial statements.

Condensed Consolidated Statement of Changes in Equity

for the six months ended 31 March 2022

1. A cumulative debit of £2,285k has been recognised in the profit and loss account reserve as at 31 March 2022 for exchange differences on translation of foreign operations(30 September 2021: £1,479k debit, 31 March 2021: £1,912k debit and 30 September 2020: £1,164k credit).

The accompanying notes form an integral part of the financial statements.

Condensed Consolidated Cash Flow Statement

for the six months ended 31 March 2022

The accompanying notes form an integral part of the financial statements.

Notes to the Condensed Consolidated 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 of Brewin Dolphin Holdings PLC and its subsidiaries (collectively, 'the Group') was approved for issue by its directors on 10 May 2022.

A copy of this Interim Financial Report including the Condensed Consolidated Financial Statements for the period ended 31 March 2022 is available at the Company's registered office and on the Company's investor relations website (www.brewin.co.uk).

The comparative information for the period ended 30 September 2021 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for that period has been delivered to the Registrar of Companies. The auditor 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. Basis of preparation

The interim condensed consolidated set of financial statements included in this Interim Financial Report has been prepared in accordance with UK-adopted International Accounting Standard 34 'Interim Financial Reporting' and the Disclosure and Transparency Rules ('DTR') sourcebook of the UK's Financial Conduct Authority.

The interim condensed consolidated set of financial statements included in this Interim Financial Report for the six months ended 31 March 2022 do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the annual audited financial statements of Brewin Dolphin Holdings PLC for the year ended 30 September 2021.

The 2021 annual financial statements of Brewin Dolphin Holdings PLC were prepared in accordance with International Financial Reporting Standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union ('IFRS').

The foreign operations have been translated into the functional currency at a spot rate of €/£1.183 for the Balance Sheet at 31 March 2022 (31 March 2021: €/£1.174 and 30 September 2021: €/£1.164) and the average exchange rate of €/£1.187 for the Income Statement items for the period ending 31 March 2022 (31 March 2021: €/£1.133 and 30 September 2021: €/£1.148).

(i) Going concern

The Directors have, at the time of approving the financial statements, a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements. To form the view that the condensed consolidated financial statements should continue to be prepared on a going concern basis, the Directors have assessed the outlook of the Group by considering:

i) the Group's Medium-Term Plan ('MTP'), the MTP is a comprehensive multi-year business plan forecasting costs and revenues across all operations and branches; and

ii) the performance of a range of stress tests including reverse stress tests are used to assess the Group's ability to withstand a market-wide stress.

The stress tests enable the modelling of the impact of a variety of external and internal events on the MTP; identify the potential impact of stress events on the Group's income, costs, cash flow and capital; and enable the Directors to assess management's ability to implement effective management actions that may be taken to mitigate the impact of the stress events. The reverse stress test allows the Directors to assess scenarios and circumstances that would render the Group's business model unviable. The tests demonstrated that the Group has adequate resources, including cash, to continue in operational existence for the foreseeable future.

In making our assessment, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and Company's ability to continue as a going concern for twelve months from the date the Interim Financial Report is signed.

(ii) Impairment considerations

At each balance sheet date, the Group reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Goodwill is tested annually at 30 September for impairment.

The Group has performed an assessment of whether there were any indicators that any of its assets may be impaired at the reporting period end. External sources of information, as well as internal information such as financial performance was considered in assessing whether there were indicators of impairment including performance of the assets.

The assessment did not identify any indicators of impairment for the assets held by the Group - see note 9 for further details.

The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. Several amendments apply for the first time in the current financial reporting period but do not have an impact on the interim condensed consolidated set of financial statements of the Group.

(iv) Material accounting policy information and use of estimates and judgements

The same material accounting policies, presentation and methods of computation as applied in the Group's latest annual audited financial statements for the year ended 30 September 2021 are followed in the condensed consolidated set of financial statements.

The preparation of interim condensed consolidated financial statements in compliance with IAS 34 requires the use of certain critical accounting judgements and key sources of estimation uncertainty. It also requires the exercise of judgement in applying the Group's accounting policies. There have been no material revisions to the nature and the assumptions used in estimating amounts reported in the annual audited financial statements of Brewin Dolphin Holdings PLC for the year ended 30 September 2021.

3. Income

The following table presents revenue disaggregated by service and timing of revenue recognition:

1. Brewin Portfolio Service.

Contract balances

The Group does not have contract assets. There are no incremental costs of obtaining a contract, and no contracts whereby revenue is conditional on the fulfilment of a contingent event.

Contract liabilities

Contract liabilities relate to the advance consideration received from customers for services still to be delivered. The Group derecognises contract liabilities (and recognises revenue) when it transfers services and satisfies its performance obligations.

Unsatisfied performance obligations

The Group does not have material unsatisfied (or partially unsatisfied) performance obligations at the reporting date, as the majority of the Group's performance obligations are satisfied equally over time.

4. Segmental information

The Group provides a wide range of wealth management services in the United Kingdom ('UK'), Channel Islands ('CI') and the Republic of Ireland ('ROI'). The Group's Executive Committee has been determined to be the chief operating decision maker for the purposes of making decisions regarding the allocation of resources and assessing the performance of the identified segments.

For management reporting purposes the Group currently has a single operating segment: the Wealth Management business. This forms the reportable segment of the Group for the period and consequently, the Group's Consolidated Income Statement and Consolidated Balance Sheet are monitored by the Group's Executive Committee. The accounting policies of the operating segment are the same as those of the Group. All segmental income relates to external clients.

Segmental income statement

for the six month period ended 31 March 2022

Segmental balance sheet

as at 31 March 2022

Segmental income statement

for the six month period ended 31 March 2021

Segmental balance sheet

as at 31 March 2021

Segmental income statement

for the year ended 30 September 2021

Segmental balance sheet

as at 30 September 2021

5. Finance income and finance costs

6. Taxation

Income tax expense

The Group calculates the period income tax expense using the tax rate that would be applicable to the expected total annual earnings.

The Finance (No.2) Bill 2019-21 maintained the UK statutory corporation tax rate at 19% until 31 March 2023. From 1 April 2023 the rate will increase to 25%. Taxation for other jurisdictions is calculated at the relevant prevailing rates in the respective jurisdictions.

Net deferred tax liability

7. Earnings per share

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

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

8. Dividends

9. Intangible assets