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Interim Results

26th May 2010 07:00

RNS Number : 5326M

Brewin Dolphin Holdings PLC

26 May 2010

Brewin Dolphin Holdings PLC

Interim Financial Report

For the Half Year Ending 28 March 2010

Highlights

●	Total managed funds £23.0 billion at 28 March 2010 (27 September 2009: £20.5 billion, 29 March 2009: £16.3 billion).
●	Discretionary funds £13.6 billion at 28 March 2010 (27 September 2009: £11.8 billion, 29 March 2009: £9.3 billion).
●	Total income £120.9 million (29 March 2009: £104.7 million) an increase of 15%.
●	Profit before tax £15.2 million (29 March 2009: £11.1 million) a 37% increase.
●	Profit before tax before redundancy costs, contract renewal payments and amortisation of client relationships £20.3 million (29 March 2009: £16.8 million) a 21% increase.
●	Earnings per share:
	-	Basic earnings per share 4.7p (29 March 2009: 3.6p) an increase of 31%.
	-	Diluted earnings per share 4.6p (29 March 2009: 3.5p) an increase of 31%.
●	Earnings per share before redundancy costs, contract renewal payments and amortisation of client relationships:
	-	Basic earnings per share 6.4p (29 March 2009: 5.6p) an increase of 14%.
	-	Diluted earnings per share 6.3p (29 March 2009: 5.4p) an increase of 17%.

Declaration of Interim Dividend

The Board declares a maintained interim dividend of 3.55p per share. The interim dividend is payable on 22 September 2010 to shareholders on the register as at 27 August 2010, with an ex dividend date of 25 August 2010.

Jamie Matheson, Executive Chairman said

"At this stage there is every indication that the performance of our business will continue to be resilient."

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 28 March 2010 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 ending 28 March 2010.

Results and review of the past six months

While the global financial situation is not without its problems the market conditions under which Brewin Dolphin operates were relatively benign. Reflecting our position as one of the UK's largest investment managers for private investors, total income during the period rose by 15% from £104.7m in the first half of last year to £120.9m. It is encouraging that investment management fee income has increased by £12.8m (41%) in the period.

During the period your Group generated pre-tax profits of £15.2m (2009: £11.1m), an increase of 37%. Prior to redundancy costs, contract renewal payments and amortisation of client relationships, profits were £20.3m (2009: £16.8m), an increase of 21%.

These results were achieved after higher salary costs, partly due to increased profit share and partly to a £2.2 million payment which has been made in the form of a contract renewal incentive. As part of a ten year cycle the Group reissued new contracts to all of its employees to comply with current regulations and to incorporate the deferred profit share scheme approved at its recent Annual General Meeting, where part of profit share will be payable in Brewin Dolphin shares, to be held for three years.

Other operating costs have increased by £5.6 million. This is due largely to external regulatory pressures and the Financial Services Compensation Scheme Levy.

The Board remains aware of the need to control costs. It is equally important to ensure that appropriate investment is made in order to help the business look after its clients properly and thus thrive and prosper.

Fully diluted earnings per share rose by 31% from 3.5p to 4.6p and a similar increase was seen in basic earnings per share from 3.6p to 4.7p. Excluding redundancy costs, contract renewal payments and amortisation of client relationships, diluted earnings per share rose by 17% from 5.4p to 6.3p.

Our Investment Management operations generated operating profits before redundancy costs, contract renewal payments and amortisation of client relationships of £19.1m, an increase of 15% over the comparable period last year (2009: £16.6m). This was despite a £7.2m fall in other operating income due entirely to lower interest rates. Total income for the division was 14% ahead at £115.1m.

Funds under management increased by 12.2% to £23 billion, and within that, discretionary funds increased to £13.6 billion, a rise of 15.3% which compares to 12.2% increase in the FTSE100 Share Index and an increase of 8.6% in the FTSE APCIMS Private Investor Balanced Portfolio Index.

	At 28 March 2010	At 27 September 2009	% Change
Indices
FTSE APCIMS Private Investor Series Balanced Portfolio	2,868	2,640	8.6%
FTSE 100	5,703	5,082	12.2%

Funds
	£ billion	£ billion
Discretionary funds under management	13.6	11.8	15.3%
Advisory funds under management	9.4	8.7	8.0%
Total managed funds	23.0	20.5	12.2%

We also launched our first national Brewin Dolphin advertising campaign which was well received both helping to build our brand and attract new business.

The recovery in performance experienced by our Corporate Advisory and Broking division (formerly Investment Banking) seen towards the end of last year has continued and I am pleased to report that operating profit before redundancy costs, contract renewal payments and amortisation of client relationships, of £962,000, was generated compared with a loss in the equivalent period of £825,000. Total income of the division rose from £3.5m to £5.9m.

It is a tribute to our business model and to our people and clients that Brewin Dolphin continues to progress. Many lessons are to be learnt from the last three years but in particular the benefits of sound, judicious, and careful long term investment emerge quite clearly.

We continue to add new teams and personnel within our network of existing offices. We opened a new office this week in Shrewsbury.

Regulation

The Group has recently changed its FSA permission from a Full Scope Firm to a Limited Licence Firm; this has had minimal impact on our business model.

Dividend

A maintained interim dividend of 3.55p per share will be paid on 22 September 2010.

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 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 set of financial statements.

Outlook

The United Kingdom has this month seen a change of Government and at the time of writing it would appear that economic stability is a major priority which should be good news for our clients and the Company. While adverse market movements remain a risk and cannot be ruled out, work continues to restore financial stability both domestically and internationally and all these efforts should be welcomed.

At this stage there is every indication that the performance of our business will continue to be resilient. Your Board remains confident in the long term prospects for the Group.

Jamie Matheson

25 May 2010

Condensed Consolidated Income Statement

26 week period ended 28 March 2010

		Unaudited 26 weeks to 28 March 2010	(Restated) Unaudited 26 weeks to 29 March 2009	Audited 52 weeks to 27 September 2009
	Note	£'000	£'000	£'000
Continuing operations
Revenue		112,999	89,617	187,241
Other operating income		7,947	15,101	25,071
Total income	5	120,946	104,718	212,312

Staff costs		(59,129)	(50,570)	(102,763)
Redundancy costs		-	(3,192)	(3,638)
Amortisation of intangible assets - client relationships	10	(2,935)	(2,519)	(6,566)
Other operating costs		(43,960)	(38,383)	(78,873)
Operating expenses		(106,024)	(94,664)	(191,840)

Operating profit		14,922	10,054	20,472
Finance income	6	558	1,600	2,435
Finance costs	6	(256)	(526)	(968)
Profit before tax	5	15,224	11,128	21,939
Tax	7	(4,895)	(3,563)	(6,404)
Profit for the period		10,329	7,565	15,535

Attributable to:
Equity shareholders of the parent from continuing operations		10,329	7,565	15,535
		10,329	7,565	15,535

Earnings per share

From continuing operations
Basic	8	4.7p	3.6p	7.4p

Diluted	8	4.6p	3.5p	7.2p

Condensed Consolidated Statement of Comprehensive Income

26 week period ended 28 March 2010

	Unaudited 26 weeks to 28 March 2010	(Restated) Unaudited 26 weeks to 29 March 2009	Audited 52 weeks to 27 September 2009
	£'000	£'000	£'000

Profit for the period	10,329	7,565	15,535
Loss on revaluation of available-for-sale investments	(430)	(309)	(17)
Deferred tax credit on revaluation of available-for-sale investments	120	87	4
Actuarial loss on defined benefit pension scheme	(960)	(1,047)	(9,556)
Deferred tax credit on actuarial loss on defined benefit pension scheme	269	293	2,676
Other comprehensive income for the period	(1,001)	(976)	(6,893)
Total comprehensive income for the period	9,328	6,589	8,642

Attributable to:
Equity shareholders of the parent	9,328	6,589	8,642
	9,328	6,589	8,642

Condensed Consolidated Statement of Changes in Equity

26 week period ended 28 March 2010

		Attributable to the equity shareholders of the parent
	Called up share capital		Share premium account	Revaluation reserve	Merger reserve	Profit and loss account	Total
	£'000		£'000	£'000	£'000	£'000	£'000

26 week period ended 28 March 2010
Balance at 27 September 2009	2,122		94,140	6,885	4,562	10,510	118,219
Profit for the period	-		-	-	-	10,329	10,329
Other comprehensive income for the period
Deferred and current tax on other comprehensive income	-		-	120	-	269	389
Actuarial loss on defined benefit pension scheme	-		-	-	-	(960)	(960)
Revaluation of available-for-sale investments	-		-	(430)	-	-	(430)
Total comprehensive income for the period	-		-	(310)	-	9,638	9,328
Dividends	-		-	-	-	(7,975)	(7,975)
Issue of shares	145		19,115	-	-	-	19,260
Share-based payments	-		-	-	-	329	329
Current tax charge on share-based payments	-		-	-	-	4	4
Deferred tax charge on share-based payments	-		-	-	-	(113)	(113)
Balance at 28 March 2010	2,267		113,255	6,575	4,562	12,393	139,052

26 week period ended 29 March 2009

Balance at 28 September 2008	2,080		90,145	6,898	4,562	16,208	119,893
Profit for the period previously reported	-		-	-	-	9,379	9,379
Prior year adjustment (note 2)	-		-	-	-	(1,814)	(1,814)
Other comprehensive income for the period
Deferred and current tax on other comprehensive income	-		-	87	-	293	380
Actuarial loss on defined benefit pension scheme	-		-	-	-	(1,047)	(1,047)
Revaluation of available-for-sale investments	-		-	(309)	-	-	(309)
Total comprehensive income for the period	-		-	(222)	-	6,811	6,589
Dividends	-		-	-	-	(7,504)	(7,504)
Issue of shares	34		3,237	-	-	-	3,271
Share-based payments	-		-	-	-	347	347
Current tax credit on share-based payments	-		-	-	-	17	17
Deferred tax charge on share-based payments	-		-	-	-	(46)	(46)
Balance at 29 March 2009 (Restated)	2,114		93,382	6,676	4,562	15,833	122,567

52 week period ended 27 September 2009

Balance at 28 September 2008	2,080		90,145	6,898	4,562	16,208	119,893
Profit for the period	-		-	-	-	15,535	15,535
Other comprehensive income for the period
Deferred and current tax on other comprehensive income	-		-	4	-	2,676	2,680
Actuarial loss on defined benefit pension scheme	-		-	-	-	(9,556)	(9,556)
Revaluation of available-for-sale investments	-		-	(17)	-	-	(17)
Total comprehensive income for the period	-		-	(13)	-	8,655	8,642
Dividends	-		-	-	-	(15,027)	(15,027)
Issue of share capital	42		3,995	-	-	-	4,037
Share-based payments	-		-	-	-	686	686
Current tax credit on share-based payments	-		-	-	-	63	63
Deferred tax charge on share-based payments	-		-	-	-	(75)	(75)
Balance at 27 September 2009	2,122		94,140	6,885	4,562	10,510	118,219

Condensed Consolidated Balance Sheet

As at 28 March 2010

		Unaudited as at 28 March 2010	(Restated) Unaudited as at 29 March 2009	Audited as at 27 September 2009
		£'000	£'000	£'000
	Note
ASSETS
Non-current assets
Intangible assets	10	88,651	82,825	89,605
Property, plant and equipment	11	19,973	28,392	22,260
Available-for-sale investments	12	10,180	10,317	10,609
Other receivables		2,235	2,444	2,269
Deferred tax asset		167	-	852
Total non-current assets		121,206	123,978	125,595
Current assets
Trading investments	12	650	596	644
Trade and other receivables		380,412	263,112	441,290
Cash and cash equivalents		98,102	50,313	69,271
Total current assets		479,164	314,021	511,205
Total assets		600,370	437,999	636,800

LIABILITIES
Current liabilities
Bank overdrafts		4,854	1,094	4,289
Trade and other payables		420,234	280,256	468,619
Current tax liabilities		4,421	1,762	1,715
Provisions	13	3,365	1,958	1,871
Shares to be issued including premium	14	357	5,197	5,056
Total current liabilities		433,231	290,267	481,550
Net current assets		45,933	23,754	29,655

Non-current liabilities
Retirement benefit obligation	15	12,907	8,169	16,253
Deferred tax liabilities		-	1,750	-
Deferred purchase consideration		2,735	2,644	3,221
Provisions	13	101	-	172
Shares to be issued including premium	14	12,344	12,602	17,385
Total non-current liabilities		28,087	25,165	37,031
Total liabilities		461,318	315,432	518,581
Net assets		139,052	122,567	118,219

EQUITY
Called up share capital	16	2,267	2,114	2,122
Share premium account	16	113,255	93,382	94,140
Revaluation reserve		6,575	6,676	6,885
Merger reserve		4,562	4,562	4,562
Profit and loss account		12,393	15,833	10,510
Equity attributable to equity holders of the parent		139,052	122,567	118,219

Condensed Consolidated Cash Flow Statement

26 week period ended 28 March 2010

		Unaudited 26 weeks to 28 March 2010	(Restated) Unaudited 26 weeks to 29 March 2009	Audited 52 weeks to 27 September 2009
	Note	£'000	£'000	£'000
Net cash inflow from operating activities	17	25,757	3,102	37,389

Cash flows from investing activities
Purchase of intangible assets - goodwill		(269)	(987)	(987)
Purchase of intangible assets - client relationships		(6,866)	(4,300)	(5,360)
Purchase of intangible assets - software	10	(1,739)	-	(5,088)
Purchases of property, plant and equipment	11	(2,955)	(5,976)	(4,443)
Dividend received from available-for-sale investments		-	-	352
Net cash used in investing activities		(11,829)	(11,263)	(15,526)

Cash flows from financing activities
Dividends paid to equity shareholders		-	-	(15,027)
Proceeds on issue of shares		14,338	551	1,317
Net cash from/(used in) financing activities		14,338	551	(13,710)

Net increase/(decrease) in cash and cash equivalents		28,266	(7,610)	8,153
Cash and cash equivalents at the start of period		64,982	56,829	56,829
Cash and cash equivalents at the end of period		93,248	49,219	64,982

Firm's cash		56,330	32,046	43,118
Firm's overdraft		(4,854)	(1,094)	(4,289)
Firm's net cash		51,476	30,952	38,829
Client settlement cash		41,772	18,267	26,153
Net cash and cash equivalents		93,248	49,219	64,982

Cash and cash equivalents shown in current assets		98,102	50,313	69,271
Bank overdrafts		(4,854)	(1,094)	(4,289)
Net cash and cash equivalents		93,248	49,219	64,982

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

Notes to the Condensed Set of Financial Statements

26 week period ended 28 March 2010

1.	General information

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 condensed consolidated interim financial information was approved for issue on 25 May 2010.

A copy of this Interim Financial Report including Condensed Financial Statements for the 26 week period ended 28 March 2010 is available at the Company's registered office and a copy will be posted to all shareholders.

The information for the 52 week period ended 27 September 2009 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 28 March 2010 should be read in conjunction with the annual financial statements of Brewin Dolphin Holdings PLC for the 52 week period ended 27 September 2009.

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 of the Financial Services Authority.

2009 change in accounting policy

As set out in Note 4 to the 2009 Annual Report and Accounts of Brewin Dolphin Holdings PLC for the 52 week period ended 27 September 2009, there was a change in accounting policy in that year. Consequently, the results for the 26 week period ended 29 March 2009 have been restated. The change in accounting policy resulted in an amortisation charge in respect of client relationships in the 26 weeks to 29 March 2009 of £2.5m and a reduction to retained earnings of £1.8m after deferred taxation for the period.

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 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 audited Annual Report and Accounts for the 52 week period ended 27 September 2009, except as described below.

In the current financial year, the Group has adopted:

a. International Accounting Standards 1 (revised 2007) "Presentation of Financial Statements".

The standard requires the presentation of a statement of changes in equity as a primary statement separate from the income statement and statement of comprehensive income. As a result a condensed consolidated statement of changes in equity has been included in the primary statements. Comparative information has been re-presented on a consistent basis with that for the 26 week period to 28 March 2010.

b. International Financial Reporting Standard 3 "Business Combinations" (revised 2008) and International Accounting Standard 27 "Consolidated and Separate Financial Statements" (revised 2008).

These standards require that acquisition costs which would have previously been included in Goodwill be included in operating expenses as they are incurred. Any changes in the cost of an acquisition, including contingent consideration, resulting from events after the date of acquisition are recognised in profit or loss; previously such changes resulted in an adjustment to Goodwill. Any adjustments to contingent consideration for acquisitions made prior to 28 September 2009 which result in an adjustment to Goodwill continue to be accounted for under IFRS (2004) and IAS 27 (2005) for which accounting policies can be found in the Group's 2009 Annual Report and Accounts. These changes in accounting policy have had no impact in the current period as there have not been any business combinations in the period.

c. International Financial Reporting Standard 8 "Operating Segments".

The standard requires operating segments to be identified on the basis of internal reports about components of the Group that are used by the chief operating decision maker to allocate resources to the segments and to assess their performance. The format of segmental disclosure set out in note 5 remains unchanged from previous disclosures as it is based on the financial information reported to the board of Brewin Dolphin Holdings PLC, the chief operating decision maker.

d. Revision to International Financial Reporting Standard 2 "Share-based payments - vesting conditions and cancellations".

The amendments clarify the definition of vesting conditions, introduce the concept of 'non-vesting' conditions and clarify the accounting treatment for cancellations. This has had no impact in the current period.

3.	Related party transactions

Transactions between the Company and its subsidiaries have been eliminated on consolidation and are not disclosed. The parent company has received no dividends from Group companies in the period (26 weeks to March 2009: £nil; 52 weeks to September 2009: £10,000,000). There were no other related party transactions during the 26 week period ended 28 March 2010 save that the Company subscribed for £4,651,958 of shares in Brewin Dolphin Limited. The amount owed by Brewin Dolphin Limited to the parent company is £18,102,000 (March 2009: £8,137,000; September 2009: £3,719,000). 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 2009 Annual Report and Accounts available via our website www.brewin.co.uk, with the exception of the amount owed by Brewin Dolphin Limited, as described above.

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 in the 2009 Annual Report and Accounts available via our website www.brewin.co.uk. In summary the major financial and non financial risks identified were:

Risk Type	Risk
Credit risk	Counterparty risk; Trading exposure
Earnings risk	Loss of front office staff
Interest rate risk	Interest rate risk
Liquidity risk	Bank default and other systemic; Capital adequacy
Legal and compliance risk	Data protection; Fast changing regulatory environment; New business and product lines
Operational and IT risk	Business continuity; Data integrity; Electronic dealing errors; Internet failure; Project control
Pension obligation risk	Capital adequacy risk from swings in defined benefit scheme liability
Reputational risk	Poor investment performance
Settlement risk	Settlement failure
Other risk	Acquisition of new teams; Financial crime

5	Segmental information

For management purposes, the Group is divided into two business streams: Investment Management and Corporate Advisory & Broking (formerly Investment Banking). These form the reportable segments of the Group.

All operations are carried out in the United Kingdom and the Channel Islands.

26 week period ended 28 March 2010
	Discretionary Portfolio Management	Advisory Portfolio Management	Total Investment Management	Corporate Advisory & Broking	Group
	£'000	£'000	£'000	£'000	£'000

Total income	75,289	39,772	115,061	5,885	120,946

Operating profit before redundancy costs, contract renewal payments and amortisation of client relationships	12,476	6,590	19,066	962	20,028
Contract renewal payments (see note 8)			(2,081)	(90)	(2,171)
Amortisation of client relationships			(2,935)	-	(2,935)
Operating profit					14,922
Finance income (net)					302
Profit before tax					15,224

Other Information
Capital expenditure			2,777	178	2,955
Depreciation			5,166	76	5,242
Amortisation of intangible asset - software			720	-	720
Share-based payments			312	17	329

Segment assets excluding current tax assets			574,577	25,793	600,370

Segment liabilities excluding current tax liabilities			431,104	25,793	456,897

26 week period ended 29 March 2009 (restated)
	Discretionary Portfolio Management	Advisory Portfolio Management	Total Investment Management	Corporate Advisory & Broking	Group
	£'000	£'000	£'000	£'000	£'000

Total income	63,199	38,005	101,204	3,514	104,718

Operating profit before redundancy costs and amortisation of client relationships	10,360	6,230	16,590	(825)	15,765
Redundancy costs			(2,846)	(346)	(3,192)
Amortisation of client relationships			(2,519)	-	(2,519)
					10,054
Other finance income (net)					1,074
Profit before tax					11,128

Other Information
Capital expenditure			5,962	14	5,976
Depreciation			5,455	103	5,558
Share-based payments			326	21	347

Segment assets excluding current tax assets			425,116	12,883	437,999

Segment liabilities excluding current tax liabilities			300,787	12,883	313,670

52 week period ended 27 September 2009
	Discretionary Portfolio Management	Advisory Portfolio Management	Total Investment Management	Corporate Advisory & Broking	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

6	Finance income and costs


	Unaudited 26 weeks to 28 March 2010	Unaudited 26 weeks to 29 March 2009	Audited 52 weeks to 27 September 2009
	£'000	£'000	£'000
Finance income
Dividends from available-for-sale investments	-	-	352
Interest on bank deposits	558	1,600	2,083
	558	1,600	2,435

Finance costs
Finance cost of deferred consideration	29	213	509
Interest expense on defined pension obligation	194	289	412
Interest on bank overdrafts	33	24	47
	256	526	968

Taxation

	Unaudited 26 weeks to 28 March 2010	(Restated) Unaudited 26 weeks to 29 March 2009	Audited 52 weeks to 27 September 2009
	£'000	£'000	£'000
United Kingdom
Current tax	4,284	3,023	5,931
Prior period	(420)	225	667
Overseas tax
Current tax	71	155	174
Prior period	-	-	(246)
	3,935	3,403	6,526
United Kingdom deferred tax
Current year	540	385	531
Prior period	420	(225)	(653)
	4,895	3,563	6,404

8	Earnings per share

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

	Unaudited 26 weeks to 28 March 2010	(Restated) Unaudited 26 weeks to 29 March 2009	Audited 52 weeks to 27 September 2009

Number of shares	'000	'000	'000
Basic
Weighted average number of shares in issue in the period	219,450	210,196	210,940
Diluted
Weighted average number of options outstanding for the period	1,825	790	1,271
Estimated weighted average number of shares earned under deferred consideration arrangements	3,903	7,019	6,555
Diluted weighted average number of options and shares for the period	225,178	218,005	218,766

Earnings attributable to ordinary shareholders	£'000	£'000	£'000
Profit attributable to equity shareholders of the parent from continuing operations	10,329	7,565	15,535
Redundancy costs	-	3,192	3,638
less tax	-	(894)	(1,019)
Contract renewal payment (Note b)	2,171	-	-
less tax	(608)	-	-
Amortisation of intangible assets - client relationships	2,935	2,519	6,566
less tax	(822)	(705)	(1,838)
Adjusted basic profit for the period and attributable earnings excluding redundancy costs, contract renewal payments and amortisation of client relationships	14,005	11,677	22,882

Profit attributable to equity shareholders of the parent from continuing operations	10,329	7,565	15,535
Finance costs of deferred consideration (Note a)	96	176	277
less tax	(27)	(49)	(78)
Adjusted fully diluted profit for the period and attributable earnings	10,398	7,692	15,734
Redundancy costs	-	3,192	3,638
less tax	-	(894)	(1,019)
Contract renewal payment (Note b)	2,171	-	-
less tax	(608)	-	-
Amortisation of intangible assets - client relationships	2,935	2,519	6,566
less tax	(822)	(705)	(1,838)
Adjusted fully diluted profit for the period and attributable earnings excluding redundancy costs, contract renewal payments and amortisation of client relationships	14,074	11,804	23,081

From continuing operations

Basic	4.7p	3.6p	7.4p

Diluted	4.6p	3.5p	7.2p


From continuing operations excluding redundancy costs, contract renewal payments and amortisation of client relationships

Basic	6.4p	5.6p	10.8p

Diluted	6.3p	5.4p	10.6p

a) Finance costs of deferred consideration are added back where the issue of shares is more dilutive than the interest cost saved.
b) Once every ten years, the Group reissues its contracts to all personnel; the cost of this is shown within staff costs.

Dividends

	Unaudited 26 weeks to 28 March 2010	Unaudited 26 weeks to 29 March 2009	Audited 52 weeks to 27 September 2009
	£'000	£'000	£'000
Amounts recognised as distributions to equity shareholders in the period:

Final dividend paid 1 April 2010*, 3.55p per share (2009: 3.55p per share)	7,975	7,504	7,504
Interim dividend paid 24 September 2009, 3.55p per share	-	-	7,523
	7,975	7,504	15,027
* approved at Annual General Meeting on 26 February 2010
An interim dividend of 3.55p per share was declared by the Board on 25 May 2010 and has not been included as a liability as at 28 March 2010. This interim dividend will be paid on 22 September 2010 to shareholders on the register at the close of business on 27 August 2010 with an ex-dividend date of 25 August 2010.

10	Intangible assets

	Goodwill	Client relationships	Software development costs	Purchased software	Total
	£'000	£'000	£'000	£'000	£'000
Cost
As previously reported at 28 September 2008	93,453	-	-	-	93,453
Prior period adjustment (note 2)	(45,077)	45,077		-	-
As restated at 28 September 2008	48,376	45,077	-	-	93,453
Additions	10	1,895	-	-	1,905
Revaluation of shares to be issued and deferred purchase consideration in respect of acquisitions in prior periods	-	(2,246)	-	-	(2,246)
At 29 March 2009	48,386	44,726	-	-	93,112
Additions	52	3,768	391	4,697	8,908
Revaluation of shares to be issued and deferred purchase consideration in respect of acquisitions in prior periods	-	2,823	-	-	2,823
At 27 September 2009	48,438	51,317	391	4,697	104,843
Additions	199	1,194	177	1,562	3,132
Revaluation of shares to be issued and deferred purchase consideration in respect of acquisitions in prior periods	-	(431)	-	-	(431)
At 28 March 2010	48,637	52,080	568	6,259	107,544

Accumulated amortisation and impairment
As previously reported at 28 September 2008	-	430	-	-	430
Prior period adjustment (note 2)	-	7,338	-	-	7,338
As restated at 28 September 2008	-	7,768	-	-	7,768
Amortisation charge for the period	-	2,519	-	-	2,519
Impairment losses for the period	-	-	-	-	-
At 29 March 2009	-	10,287	-	-	10,287
Amortisation charge for the period	-	4,047	49	625	4,721
Impairment losses for the period	-	230	-	-	230
At 27 September 2009	-	14,564	49	625	15,238
Amortisation charge for the period	-	2,935	62	658	3,655
Impairment losses for the period	-	-	-	-	-
At 28 March 2010	-	17,499	111	1,283	18,893
Net book value
As restated at 28 September 2008	48,376	37,309	-	-	85,685
At 29 March 2009	48,386	34,439	-	-	82,825
At 27 September 2009	48,438	36,753	342	4,072	89,605
At 28 March 2010	48,637	34,581	457	4,976	88,651

As set out in the annual financial statements of Brewin Dolphin Holdings PLC for the 52 week period ended 27 September 2009 in Note 4, there was a change in accounting policy. Consequently, the 29 March 2009 results have been restated, the change in accounting policy resulted in an amortisation charge in respect of client relationships of £2.5m for the 26 week period ended 29 March 2009 (previously nil).

11	Property, plant and equipment

During the period the Group spent £1.1 million (26 weeks to 29 March 2009: £0.7 million, 52 weeks to 27 September 2009: £0.9 million) on leasehold improvements, £1.5 million (26 weeks to 29 March 2009: £4.9 million, 52 weeks to 27 September 2009: £3.1 million) on computer equipment and £0.4 million (26 weeks to 29 March 2009: £0.4 million, 52 weeks to 27 September 2009: £0.5 million) on office equipment.

12	Investments

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

At 28 March 2010	180	10,000	10,180

At 29 March 2009	317	10,000	10,317

At 27 September 2009	609	10,000	10,609
Unlisted available-for-sale investments represent the Group's holding of 19,899 ordinary shares in Euroclear plc. This holding represents 0.52% of Euroclear plc's shares. As at 27 September 2009 the Directors updated their valuation of the Group's holding in Euroclear plc; the valuation has remained unchanged at £10 million. This valuation took into account the Group's share of net assets, dividend yield and the prices of similar quoted companies discounted for marketability.

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

At 28 March 2010	650	-	650

At 29 March 2009	596	-	596

At 27 September 2009	644	-	644
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 28 March 2010	Unaudited 26 weeks to 28 March 2010	Unaudited 26 weeks to 28 March 2010	Unaudited 26 weeks to 29 March 2009	Audited 52 weeks to 27 September 2009
	£'000	£'000	£'000	£'000	£'000
	Sundry claims and associated costs	Vacant Property	Total	Total	Total
At start of period	1,734	309	2,043	2,068	2,068
Additions	2,669	-	2,669	358	1,493
Utilisation of provision	(433)	(107)	(540)	(284)	(1,243)
Unused amounts reversed during the period	(706)	-	(706)	(184)	(275)
At end of period	3,264	202	3,466	1,958	2,043
Provisions
Included in current liabilities	3,264	101	3,365	1,958	1,871
Included in non-current liabilities	-	101	101	-	172
	3,264	202	3,466	1,958	2,043

Provisions relate to sundry claims against the Group and the future cost of vacant property. Where there are legal actions against the Group the estimated liability has been included above with the related insurance debtor of £512,500 (29 March 2009: £1,762,000, 27 September 2009: £326,000) included in other debtors. The timing of settlements cannot be accurately forecast; settlement of £nil has been made since the balance sheet date.

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

The Group acquires businesses 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 have to be held typically 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 to include new teams who have arrived and the progress of the businesses acquired.

15	Retirement benefit obligation

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

	As at 28 March 2010	As at 29 March 2009	As at 27 September 2009
Discount rate	5.70%	7.20%	5.60%
Rate of inflation	3.50%	3.10%	3.00%
Salary increases	3.50%	3.10%	3.00%
Expected return on equities	8.10%	7.80%	7.60%
Expected return on bonds	5.10%	4.80%	4.60%
Expected return on other assets	0.50%	0.50%	0.50%
Rate of increase to pensions in payment	3.50%	3.10%	3.00%

Average assumed life expectancies for members on retirement at age 65
Existing pensioners
Males	87.4 years	87.0 years	87.4 years
Females	88.9 years	89.8 years	88.9 years
Future pensioners
Males	88.6 years	88.1 years	88.6 years
Females	90.0 years	90.9 years	90.0 years

A full actuarial valuation was carried out as at 31 December 2008 and the results of this valuation have been updated to 28 March 2010 by a qualified independent actuary and reflected in the accounts.

The Group has agreed to make additional pension contributions of £3 million per annum with the aim of paying the deficit off over 8.5 years.

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 27 September 2009		212,293,167	3,478,056		2,122	94,140	96,262
Issue of options	Various	380,353	-	37.5p - 145.0p	4	359	363
Nil paid shares now paid up	Various	144,593	(144,593)	103.3p - 217.5p	1	161	162
Settlement of deferred consideration	3 Dec 2009	1,264,720	-	132.6p	13	2,083	2,096
Placing of shares	15 Dec 2009	10,590,764	-	135.0p	106	14,191	14,297
Settlement of deferred consideration	16 Mar 2010	2,132,505	-	165.7p	21	2,806	2,827
Cost of issue of shares	Various	-	-	-		(485)	(485)
At 28 March 2010		226,806,102	3,333,463		2,267	113,255	115,522

The equity placing on 15 December 2009 used existing shareholder authorities. The purpose was to ensure that the Group continued to carry sufficient capital to cover anticipated future regulatory capital requirements.

17	Note to the cash flow statement

	Unaudited 26 weeks to 28 March 2010	(Restated) Unaudited 26 weeks to 29 March 2009	Audited 52 weeks to 27 September 2009
	£'000	£'000	£'000
Group
Operating profit as previously reported		12,573	24,716
Prior period adjustment (note 2)		(2,519)	(4,244)
Operating profit	14,922	10,054	20,472
Adjustments for:
Depreciation of property, plant and equipment	5,242	5,558	10,153
Amortisation of intangible assets - client relationships	2,935	2,519	6,566
Amortisation of intangible assets - software	720	-	674
Loss on disposal of property, plant and equipment	-	-	5
Intangible asset impairment	-	-	230
Retirement benefit obligation	(4,306)	(842)	(1,267)
Share-based payment cost	329	347	686
Unwind of discount of shares to be issued and deferred purchase consideration	29	289	509
Interest income	558	1,600	2,083
Interest expense	(256)	(526)	(968)
Operating cash flows before movements in working capital	20,173	18,999	39,143
Decrease in receivables and trading investments	(53,851)	20,091	161,518
Decrease in payables	60,659	(33,863)	(157,976)
Cash generated by operating activities	26,981	5,227	42,685
Tax paid	(2,200)	(2,125)	(5,296)
Tax receipt following overpayment in prior years	976	-	-
Net cash inflow from operating activities	25,757	3,102	37,389

Funds

	At 28 March 2010	At 29 March 2009	At 27 September 2009
	£ Billion	£ Billion	£ Billion
In Group's nominee or sponsored member	13.3	9.2	11.6
Stock not held in Group's nominee	0.3	0.1	0.2
Discretionary funds under management	13.6	9.3	11.8

In Group's nominee or sponsored member	7.8	5.7	7.2
Other funds where valuations are carried out but where the stock is not under the Group's control	1.6	1.3	1.5
Advisory funds under management	9.4	7.0	8.7

Managed funds	23.0	16.3	20.5


In Group's nominee or sponsored member	4.0	3.0	3.7
Stock not held in Group's nominee	0.3	0.2	0.4
Execution only stock	4.3	3.2	4.1

Total funds	27.3	19.5	24.6

Stock
In Group's nominee or sponsored member	25.1	17.9	22.5
Stock not held in Group's nominee	2.2	1.6	2.1
	27.3	19.5	24.6

Responsibility Statement

The directors' confirm that to the best of their knowledge:
a)	the condensed set of financial statements has been prepared in accordance with IAS 34 "Interim Financial Reporting";
b)	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 for the remaining six months of the year); and
c)	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		Finance Director
25 May 2010

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 28 March 2010 which comprises 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 17. 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 them 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 group 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 28 March 2010 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 Auditors

London, United Kingdom

25 May 2010

This information is provided by RNS

The company news service from the London Stock Exchange

END

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