Interim Management Statement

31 January 2013

Brewin Dolphin Holdings PLC

Interim Management Statement

Quarter ended 31 December 2012

This Interim Management Statement ("IMS") is issued by Brewin Dolphin Holdings PLC as required by the UK Listing Authority's Disclosure and Transparency rules. It covers the period from 1 October 2012 to 30 January 2013, and includes trading results for the three months ended 31 December 2012.

Income

Total Income increased by 13.7% in the first quarter of the financial year to £67.8m from £59.7m for the equivalent period last year. This is a good result against the comparable period last year; when compared to the preceding quarter ended 30th September it is down 5% primarily due to the ongoing reduction of trail income in preparation for RDR implementation.

The trend towards an increasing proportion of recurring fee income is continuing, albeit at a marginally slower pace than during 2012. Repricing and moving to new national rate cards remains on track for completion by the end of this financial year although progress was slower than anticipated in the first quarter.

The recovery in the commission levels from the sharp falls experienced in the first quarter of the last financial year has stabilised and first quarter total commission income was in line with the average for the final two quarters of the previous financial year.

Funds under Management

Overall Funds under Management were stable at £26.0bn in the first quarter. Advisory funds under management saw net outflows as a result of ongoing service reviews as part of the move to new pricing. Underlying inflows into discretionary continued at the strong levels achieved during the preceding 12 months, whilst outflows in the quarter were higher than in recent quarters due to exceptional outflows relating to the departure of an associate managed team.

The value of clients' funds under the Group's management was as follows:

Ongoing underlying profitability has resulted in both working and regulatory capital surpluses being maintained whilst the Group has continued with its programme of significant capital investment in the project to implement a new operating model. Design and testing of the new settlement system is ongoing although some delays experienced in the quarter will result in slightly higher than forecast full year capital expenditure.

Outlook

The Group is in a period of consolidation after the expansion-led growth of recent years. In particular, the priority remains continued improvement in the quality of service to clients, increasing shareholder returns through improved operational efficiency and ensuring that the highest standards of compliance with regulatory requirements continue to be met.

To fulfil these aims, whilst still growing through organic fund inflows, the Group has committed itself to a significant programme of organisational change with material capital investment in new systems. The Group retains this commitment and will continually examine opportunities to improve business efficiency. In particular, future efforts will not be limited to further investment in systems and people but will also encompass a programme of organisational efficiency, underpinned by rigorous and disciplined cost control.

The Group believes this is the right strategy and, though mindful of the short term risks inherent to it, is confident that achievement of this should deliver sustainable long term shareholder value.

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Notes for editors