30th May 2008 07:00
30 May 2008
Brewin Dolphin Holdings PLC
Interim Financial Report
For the Half Year Ending 30 March 2008
Highlights
Discretionary funds £10.4 billion at 30 March 2008 (30 September 2007: £10.7 billion, 31 March 2007: £10.1 billion)
Total income £104.1 million (2007: £98.0 million) an increase of 6.2%
Profit before tax £21.8 million (2007: £20.8 million) a 4.9% increase
Earnings per share
- Basic earnings per share 7.5p (2007: 7.2p) an increase of 4.2%
- Diluted earnings per share 7.2p (2007: 6.8p) an increase of 5.9%
Declaration of Interim Dividend
The Board is pleased to declare an interim dividend of 3.55p per share, this being up 5.2% against a 3.375p per share interim dividend paid in October 2007. The interim dividend is payable on 24 September 2008 to shareholders on the register as at 22 August 2008, with an ex dividend date of 20 August 2008.
Jamie Matheson, Executive Chairman said
"Within the Investment Management division there is strong performance from our discretionary fund management activities and our Investment Banking arm has achieved operating profits. Despite difficult conditions we expect a creditable outcome from your Group for the year."
For further information
Jamie Matheson, Executive Chairman Toby Mountford / George Cazenove
Brewin Dolphin Citigate Dewe Rogerson
020 7248 4400 020 7638 9571
Executive Chairman's Statement
To the members of Brewin Dolphin Holdings PLC
Introduction
This statement forms the Interim Management Report for the half year ending 30 March 2008.
Results and review of the past six months
It gives me pleasure to report on the Interim Results for the six months ended 30 March 2008. Your Group achieved pre-tax profits of £21.8 million (2007: £20.8 million), an increase of 4.9% over the comparable period last year, with total income up 6.2% at £104.1 million (2007: £98.0 million).
Within these figures there is strong performance from our discretionary fund management activities where operating profit rose by 22.8% to £11.0 million (2007: £9.0 million) and total income by 17.8% to £60.5 million (2007: £51.4 million). The operating profit from our advisory business was virtually unchanged at £6.6 million with total income up by 2.1% at £36.0 million (2007: £35.3 million).
Our Investment Banking arm has experienced quieter trading in very tough market conditions. The Division has achieved operating profits of £1.1 million (2007: £2.5 million) and total income of £7.6 million (2007: £11.4 million).
Fully diluted earnings per share grew by 5.9% from 6.8p to 7.2p. Your Board is pleased to announce that the Company will pay an interim dividend of 3.55p per share, payable on 24 September 2008.
During the period under review total funds declined by 8.4% to £23.0 billion (September 2007: £25.1 billion). Our discretionary funds under management have fallen by 2.8% but, when compared to the FTSE APCIMS Balanced Index, show a rise of 4.9% in real terms (9.8% annualised).
|
At 30 March 2008 |
At 30 September 2007 |
% Change |
|
|
Indices |
|||
|
FTSE APCIMS Private Investor Series Balanced Portfolio |
2,796 |
3,029 |
-7.7% |
|
FTSE 100 |
5,693 |
6,467 |
-12.0% |
|
|
|||
|
Funds |
|||
|
£ Billion |
£ Billion |
||
|
Discretionary funds under management |
10.4 |
10.7 |
-2.8% |
|
Advisory funds under management |
9.5 |
10.9 |
-12.8% |
|
Execution only stock |
3.1 |
3.5 |
-11.4% |
|
Total funds |
23.0 |
25.1 |
-8.4% |
These results have been achieved against a market background more challenging than at any time since the early 1970's. Your Group has continued to pursue a strategy of growth by adding new teams and offices as well as by organic growth from our existing offices. We have welcomed 29 new fund managers during the period and opened a new office in Nottingham in April 2008.
Related party transactions
Related party transactions are disclosed in note 3 to the Interim Financial Report.
Outlook
As always our principal risk in the short term is the threat of adverse market movement. Clearly, the next few months will continue to be affected by unsettled financial markets across the globe.
Despite difficult conditions we expect a reasonably stable outcome from our Investment Management business for the second half. It is unlikely that there will be any material IPO activity from our Investment Banking division.
Your Board remains firmly committed to the strategy of increasing value to shareholders through the pursuit of judicious growth and we continue to be confident in our long term prospects.
Jamie Matheson
29 May 2008
Consolidated Income Statement
26 week period ended 30 March 2008
|
Unaudited 26 weeks to 30 March 2008 |
Unaudited 26 weeks to 31 March 2007 |
Audited 52 weeks to 30 September 2007 |
||
|
Note |
£'000s |
£'000s |
£'000s |
|
|
Continuing operations |
||||
|
Revenue |
95,130 |
92,838 |
198,032 |
|
|
Other operating income |
8,967 |
5,186 |
11,247 |
|
|
Total income |
5 |
104,097 |
98,024 |
209,279 |
|
Staff costs |
(52,038) |
(51,953) |
(117,641) |
|
|
Other operating costs |
(33,349) |
(28,086) |
(56,882) |
|
|
(85,387) |
(80,039) |
(174,523) |
||
|
Operating profit |
18,710 |
17,985 |
34,756 |
|
|
Other gains and losses |
- |
58 |
58 |
|
|
Finance income |
6 |
3,518 |
2,786 |
7,406 |
|
Finance costs |
6 |
(428) |
(53) |
(564) |
|
Profit before tax |
5 |
21,800 |
20,776 |
41,656 |
|
Tax |
7 |
(6,447) |
(6,452) |
(12,708) |
|
Profit attributable to equity shareholders of the parent from continuing operations |
15,353 |
14,324 |
28,948 |
|
|
Earnings per share |
||||
|
From continuing operations |
||||
|
Basic |
8 |
7.5p |
7.2p |
14.5p |
|
Diluted |
8 |
7.2p |
6.8p |
13.8p |
Consolidated Statement of Recognised Income and Expense
26 week period ended 30 March 2008
|
Unaudited 26 weeks to 30 March 2008 |
Unaudited 26 weeks to 31 March 2007 |
Audited 52 weeks to 30 September 2007 |
||
|
£'000s |
£'000s |
£'000s |
||
|
(Loss)/gain on revaluation of available-for-sale investments |
(600) |
299 |
816 |
|
|
Tax on revaluation of available-for-sale investments |
168 |
(90) |
(41) |
|
|
Actuarial (loss) /gain on defined benefit pension scheme |
(1,570) |
1,133 |
1,420 |
|
|
Tax on actuarial loss/(gain) on defined benefit pension scheme |
440 |
(340) |
(620) |
|
|
Deferred tax on share based payments |
(1,125) |
388 |
439 |
|
|
Net (expense)/income recognised directly in equity |
(2,687) |
1,390 |
2,014 |
|
|
Transfers |
||||
|
Transfer gain on revaluation on sale of available-for-sale investments |
- |
(54) |
(54) |
|
|
Transfer tax on revaluation on sale of available-for-sale investments |
- |
18 |
18 |
|
|
Transfer to profit or loss on sale of available-for-sale investments |
- |
(36) |
(36) |
|
|
(2,687) |
1,354 |
1,978 |
||
|
Profit for the period |
15,353 |
14,324 |
28,948 |
|
|
Total recognised income and expense for the period attributable to equity shareholders of the parent |
12,666 |
15,678 |
30,926 |
|
Consolidated Balance Sheet
As at 30 March 2008
|
Unaudited as at 30 March 2008 |
Unaudited as at 31 March 2007 |
Audited as at 30 September 2007 |
||
|
£'000s |
£'000s |
£'000s |
||
|
Note |
||||
|
ASSETS |
||||
|
Non-current assets |
||||
|
Goodwill |
10 |
75,040 |
73,037 |
65,767 |
|
Property, plant and equipment |
11 |
24,166 |
19,231 |
20,949 |
|
Available-for-sale investments |
12 |
10,926 |
11,009 |
11,526 |
|
Other receivables |
2,270 |
1,896 |
2,059 |
|
|
Deferred tax asset |
- |
1,531 |
542 |
|
|
112,402 |
106,704 |
100,843 |
||
|
Current assets |
||||
|
Trading investments |
12 |
1,307 |
1,337 |
1,251 |
|
Trade and other receivables |
290,948 |
356,435 |
356,385 |
|
|
Cash and cash equivalents |
52,915 |
54,274 |
87,946 |
|
|
345,170 |
412,046 |
445,582 |
||
|
Total assets |
457,572 |
518,750 |
546,425 |
|
|
LIABILITIES |
||||
|
Current liabilities |
||||
|
Bank overdrafts |
999 |
1,618 |
543 |
|
|
Trade and other payables |
304,212 |
370,418 |
404,873 |
|
|
Current tax liabilities |
3,491 |
5,549 |
4,965 |
|
|
Shares to be issued including premium |
13 |
7,674 |
1,000 |
4,504 |
|
316,376 |
378,585 |
414,885 |
||
|
Net current assets |
28,794 |
33,461 |
30,697 |
|
|
Non-current liabilities |
||||
|
Retirement benefit obligation |
14 |
5,781 |
13,993 |
9,735 |
|
Deferred purchase consideration |
13 |
966 |
3,529 |
664 |
|
Deferred tax liability |
2,551 |
- |
- |
|
|
Shares to be issued including premium |
13 |
8,413 |
18,080 |
5,809 |
|
17,711 |
35,602 |
16,208 |
||
|
Total liabilities |
334,087 |
414,187 |
431,093 |
|
|
Net assets |
123,485 |
104,563 |
115,332 |
|
|
EQUITY |
||||
|
Called up share capital |
16 |
2,073 |
2,015 |
2,035 |
|
Share premium account |
16 |
89,352 |
84,885 |
86,968 |
|
Revaluation reserve |
16 |
7,112 |
6,978 |
7,544 |
|
Merger reserve |
16 |
4,562 |
4,562 |
4,562 |
|
Profit and loss account |
16 |
20,386 |
6,123 |
14,223 |
|
Equity attributable to equity holders of the parent |
16 |
123,485 |
104,563 |
115,332 |
Consolidated Cash Flow Statement
26 week period ended 30 March 2008
|
Unaudited 26 weeks to 30 March 2008 |
Unaudited 26 weeks to 31 March 2007 |
Audited 52 weeks to 30 September 2007 |
||
|
Note |
£'000s |
£'000s |
£'000s |
|
|
Net cash flow from operating activities |
15 |
(21,107) |
7,389 |
54,183 |
|
Cash flows from investing activities |
||||
|
Purchase of goodwill |
10 |
(2,737) |
(3,532) |
(6,114) |
|
Deferred purchase consideration |
(140) |
- |
- |
|
|
Purchases of property, plant and equipment |
11 |
(7,056) |
(5,007) |
(10,106) |
|
Proceeds from sale of available-for-sale investments |
- |
159 |
159 |
|
|
Purchases of available-for-sale investments |
- |
(400) |
(400) |
|
|
Dividend received from available-for-sale investments |
- |
- |
322 |
|
|
Net cash used in investing activities |
(9,933) |
(8,780) |
(16,139) |
|
|
Cash flows from financing activities |
||||
|
Dividends paid to equity shareholders |
(6,869) |
(5,488) |
(11,279) |
|
|
Proceeds on issue of shares |
2,422 |
1,156 |
2,259 |
|
|
Net cash used in financing activities |
(4,447) |
(4,332) |
(9,020) |
|
|
Net (decrease) / increase in cash and cash equivalents |
(35,487) |
(5,723) |
29,024 |
|
|
Cash and cash equivalents at the start of period |
87,403 |
58,379 |
58,379 |
|
|
Cash and cash equivalents at the end of period |
51,916 |
52,656 |
87,403 |
|
|
Firm's cash |
32,046 |
37,369 |
68,960 |
|
|
Firm's overdraft |
(999) |
(1,618) |
(543) |
|
|
Firm's net cash |
31,047 |
35,751 |
68,417 |
|
|
Client settlement cash |
20,869 |
16,905 |
18,986 |
|
|
Net cash and cash equivalents |
51,916 |
52,656 |
87,403 |
|
|
Cash and cash equivalents shown in current assets |
52,915 |
54,274 |
87,946 |
|
|
Bank overdrafts |
(999) |
(1,618) |
(543) |
|
|
Net cash and cash equivalents |
51,916 |
52,656 |
87,403 |
|
Notes to the Interim Financial Report
1. Basis of preparation
The annual financial statements of Brewin Dolphin Holdings PLC are prepared in accordance with International Financial Reporting Standards as adopted by the European Union. The condensed set of financial statements included in this interim financial report for the 26 week period to 30 March 2008 has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting", as adopted by the European Union. The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statement as applied in the Group's latest audited Annual Report and Accounts for the year ended 30 September 2007.
2. Section 240 statement
The financial information set out in this document in respect of the year ended 30 September 2007 does not constitute the Group's statutory accounts for the year ended 30 September 2007 within the meaning of section 240 of the Companies Act 1985. Those accounts were prepared under International Financial Reporting Standards and have been reported on by the Company's auditors and delivered to the Registrar of Companies. The auditors report was unqualified and did not contain a statement under section 237 (2) or (3) of the Companies Act 1985. A copy of this statement is available at the Company's registered office at 12 Smithfield Street, London EC1A 9BD and a copy will be posted to all shareholders.
3. Related party transactions
Related party transactions are described in the 2007 Annual Report and Accounts on page 65. The parent company has received dividends of £16,600 (March 2007: £nil; September 2007: £nil), from Webrich Limited, a subsidiary company, in the period. There were no other related party transactions during the 26 week period to 30 March 2008. The amount owed by Brewin Dolphin Limited to the parent company is £6,889,000 (March 2007: £2,508,000; September 2007: £11,321,000). There have been no changes in the related party transactions described in the 2007 Annual Report and Accounts on www.brewin.co.uk with the exception of the amount owed by Brewin Dolphin Limited as described above.
4. Principal risks and uncertainties
Information on the principal long-term risks and uncertainties of the Group is included in our latest Annual Report and Accounts on www.brewin.co.uk. Risks and uncertainties which could have a material impact on the Group's performance over the remaining six months of the financial year are discussed in the Executive Chairman's Statement.
5. Segmental information
For management purposes, the Group is divided into two business streams: Investment Management and Investment Banking. These form the basis for the primary segment information reported below. All operations are carried out in the United Kingdom and the Channel Islands.
|
Unaudited 26 weeks to 30 March 2008 |
Unaudited 26 weeks to 31 March 2007 |
Audited 52 weeks to30 September 2007 |
|
|
£'000s |
£'000s |
£'000s |
|
|
Total income |
|||
|
Investment management |
|||
|
Discretionary portfolio management |
60,530 |
51,382 |
110,413 |
|
Advisory portfolio management |
36,015 |
35,263 |
69,326 |
|
96,545 |
86,645 |
179,739 |
|
|
Investment banking |
7,552 |
11,379 |
29,540 |
|
104,097 |
98,024 |
209,279 |
|
|
Profit before tax |
|||
|
Investment management |
|||
|
Discretionary portfolio management |
11,047 |
8,996 |
15,154 |
|
Advisory portfolio management |
6,573 |
6,458 |
12,555 |
|
17,620 |
15,454 |
27,709 |
|
|
Investment banking |
1,090 |
2,531 |
7,047 |
|
18,710 |
17,985 |
34,756 |
|
|
Other gains and losses and finance income (net) |
3,090 |
2,791 |
6,900 |
|
21,800 |
20,776 |
41,656 |
|
|
Segment assets |
|||
|
Investment management |
413,245 |
432,593 |
398,112 |
|
Investment banking |
44,327 |
86,157 |
148,313 |
|
457,572 |
518,750 |
546,425 |
|
|
Segment liabilities |
|||
|
Investment management |
289,760 |
328,030 |
282,780 |
|
Investment banking |
44,327 |
86,157 |
148,313 |
|
334,087 |
414,187 |
431,093 |
|
6. Finance income and costs
|
Unaudited 26 weeks to 30 March 2008 |
Unaudited 26 weeks to 31 March 2007 |
Audited 52 weeks to 30 September 2007 |
|
|
£'000s |
£'000s |
£'000s |
|
|
Finance income |
|||
|
Interest income on pension plan assets |
66 |
- |
60 |
|
Dividends from equity investments |
- |
- |
322 |
|
Interest on bank deposits |
3,452 |
2,786 |
7,024 |
|
3,518 |
2,786 |
7,406 |
|
|
Finance costs |
|||
|
Interest cost on pension plan liabilities |
- |
40 |
- |
|
Finance cost of deferred consideration |
412 |
- |
515 |
|
Interest on bank overdrafts |
16 |
13 |
49 |
|
428 |
53 |
564 |
|
7. Taxation
|
Unaudited 26 weeks to 30 March 2008 |
Unaudited 26 weeks to 31 March 2007 |
Audited 52 weeks to 30 September 2007 |
|
|
£'000s |
£'000s |
£'000s |
|
|
United Kingdom |
|||
|
Current year |
3,758 |
5,504 |
10,247 |
|
Prior year |
- |
- |
430 |
|
Overseas |
|||
|
Current |
111 |
195 |
297 |
|
Prior year |
- |
- |
5 |
|
3,869 |
5,699 |
10,979 |
|
|
United Kingdom deferred tax |
|||
|
Current year |
2,388 |
793 |
2,207 |
|
Prior year |
72 |
- |
(398) |
|
Impact of change in tax rate |
118 |
(40) |
(80) |
|
6,447 |
6,452 |
12,708 |
|
8. Earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:
|
Unaudited 26 weeks to 30 March 2008 |
Unaudited 26 weeks to 31 March 2007 |
Audited 52 weeks to 30 September 2007 |
|
|
Number of shares |
|||
|
'000 |
'000 |
'000 |
|
|
Basic |
|||
|
Weighted average number of shares in issue in the period |
204,770 |
200,138 |
201,438 |
|
Diluted |
|||
|
Weighted average number of options outstanding for the period |
3,477 |
5,623 |
5,135 |
|
Estimated weighted average number of shares to be issued under deferred consideration arrangements |
6,862 |
4,719 |
4,712 |
|
Diluted weighted average number of options and shares for the period |
215,109 |
210,480 |
211,285 |
|
Earnings attributable to ordinary shareholders |
|||
|
£'000s |
£'000s |
£'000s |
|
|
Profit attributable to equity shareholders of the parent from continuing operations |
15,353 |
14,324 |
28,948 |
|
Finance costs of deferred consideration (Note a) |
254 |
- |
311 |
|
less tax |
(74) |
- |
(93) |
|
Adjusted basic profit for the period and attributable earnings |
15,533 |
14,324 |
29,166 |
|
Earnings per share |
|||
|
From continuing operations |
|||
|
Basic |
7.5p |
7.2p |
14.5p |
|
Diluted |
7.2p |
6.8p |
13.8p |
|
a) Finance costs of deferred consideration are added back where the issue of shares is more dilutive than the interest cost saved. |
|||
9. Dividends
|
Unaudited 26 weeks to30 March 2008 |
Unaudited 26 weeks to 31 March 2007 |
Audited 52 weeks to 30 September 2007 |
|
|
£'000s |
£'000s |
£'000s |
|
|
Amounts recognised as distributions to equity holders in the period: |
|||
|
Final dividend paid 7 April 2008, 3.5p per share |
7,248 |
- |
- |
|
First interim dividend paid 10 April 2007, 2.875p per share |
- |
5,791 |
5,791 |
|
Second interim dividend paid 25 October 2007, 3.375p per share |
- |
- |
6,869 |
|
7,248 |
5,791 |
12,660 |
|
10. Goodwill
|
£'000 |
|||
|
At 1 October 2007 |
65,767 |
||
|
Revaluations |
1,989 |
||
|
Additions |
7,284 |
||
|
At 30 March 2008 |
75,040 |
||
|
There are no accumulated impairment losses. The net upward revaluation in goodwill results from changes in estimates of amounts of shares to be issued and other deferred purchase consideration (note 13). |
|||
|
Additions relate to: |
|||
|
Acquisitions in the period |
|||
|
Cash |
2,989 |
||
|
Deferred purchase liability |
558 |
||
|
Value of shares to be issued |
3,578 |
||
|
7,125 |
|||
|
Acquisitions in prior periods |
|||
|
Cash |
159 |
||
|
Additions in period |
7,284 |
||
|
Issue of shares and change in shares to be issued |
(3,989) |
||
|
Deferred purchase liability |
(558) |
||
|
Net cash movement shown in cash flow |
2,737 |
||
|
Acquisitions comprise of the purchase of investment management businesses and consist entirely of goodwill. |
|||
|
Acquisitions during the period decreased profits for the period by £0.4 million and increased revenue by £1.6 million. If the acquisitions had been effected at the start of the period profits would have decreased by a further £0.1 million and revenue increased by a further £0.3 million. |
|||
11. Property, plant and equipment
During the period the Group spent £2.0 million on leasehold improvements, £4.7 million on computer equipment and £0.4 million on office equipment.
12. Investments
|
Available-for-sale investments |
||||
|
Listed investments |
Unlisted investments |
Total |
||
|
£'000s |
£'000s |
£'000s |
||
|
Fair value |
||||
|
At 30 March 2008 |
926 |
10,000 |
10,926 |
|
|
At 31 March 2007 |
1,509 |
9,500 |
11,009 |
|
|
At 30 September 2007 |
1,526 |
10,000 |
11,526 |
|
|
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. The Directors updated their valuation of the Group's holding in Euroclear plc to £10m as at 30 September 2007 which has remained unchanged at 30 March 2008. 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 |
||
|
£'000s |
£'000s |
£'000s |
||
|
Fair value |
||||
|
At 30 March 2008 |
1,307 |
- |
1,307 |
|
|
At 31 March 2007 |
1,337 |
- |
1,337 |
|
|
At 30 September 2007 |
1,251 |
- |
1,251 |
|
|
Investments are measured at fair value which is determined directly by reference to published prices in an active market where available. |
||||
13. 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.
14. Retirement benefit obligation
The main financial assumptions used in calculating the Group's retirement benefit obligation are as follows:
|
As at 30 March 2008 |
As at 31 March 2007 |
As at 30 September 2007 |
|
|
Discount rate |
6.60% |
5.30% |
5.80% |
|
Rate of inflation |
3.50% |
3.10% |
3.20% |
|
Salary increases |
3.50% |
3.10% |
3.20% |
|
Expected return on equities |
7.60% |
7.60% |
7.60% |
|
Expected return on bonds |
5.20% |
4.60% |
5.20% |
|
Expected return on other assets |
5.75% |
4.75% |
5.75% |
|
Rate of increase to pensions in payment |
3.50% |
3.10% |
3.20% |
|
Average assumed life expectancies for members on retirement at age 65 |
|||
|
Existing pensioners |
|||
|
Males |
87.0 years |
86.2 years |
|
|
Females |
89.8 years |
89.1 years |
|
|
Future pensioners |
|||
|
Males |
88.1 years |
87.3 years |
|
|
Females |
90.9 years |
90.1 years |
|
A full actuarial valuation was carried out as at 31 December 2005 and the results of this valuation have been updated to 30 March 2008 by a qualified independent actuary and reflected in the accounts.
15. Note to the cash flow statement
|
Unaudited 26 weeks to 30 March 2008 |
Unaudited 26 weeks to 31 March 2007 |
Audited 52 weeks to 30 September 2007 |
|
|
£'000s |
£'000s |
£'000s |
|
|
Group |
|||
|
Operating profit |
18,710 |
17,985 |
34,756 |
|
Adjustments for: |
|||
|
Depreciation of property, plant and equipment |
3,839 |
2,696 |
6,057 |
|
Retirement benefit obligation |
(5,524) |
(296) |
(4,267) |
|
Share based payment cost |
313 |
322 |
607 |
|
Interest income |
3,518 |
2,786 |
6,779 |
|
Interest expense |
(428) |
(53) |
(564) |
|
Operating cash flows before movements in working capital |
20,428 |
23,440 |
43,368 |
|
Decrease/(Increase) in receivables and trading investments |
65,170 |
(103,773) |
(104,674) |
|
(Decrease)/Increase in payables |
(101,360) |
90,965 |
124,647 |
|
Cash generated by operating activities |
(15,762) |
10,632 |
63,341 |
|
Tax paid |
(5,345) |
(3,243) |
(9,158) |
|
Net cash flow from operating activities |
(21,107) |
7,389 |
54,183 |
Cash and cash equivalents comprise cash at bank and bank overdrafts. 16. Reconciliation of changes in equity
|
Called up share capital |
Share premium account |
Revaluation reserve |
Merger reserve |
Profit and loss account |
Total |
|
|
£'000s |
£'000s |
£'000s |
£'000s |
£'000s |
£'000s |
|
|
31 March 2007 |
2,015 |
84,885 |
6,978 |
4,562 |
6,123 |
104,563 |
|
Profit for the period |
- |
- |
- |
- |
14,626 |
14,626 |
|
Dividends |
- |
- |
- |
- |
(6,869) |
(6,869) |
|
Issue of shares |
20 |
2,083 |
- |
- |
- |
2,103 |
|
Revaluation |
- |
- |
517 |
- |
- |
517 |
|
Deferred tax on items taken directly to equity |
- |
- |
49 |
- |
(229) |
(180) |
|
Share based payments |
- |
- |
- |
- |
285 |
285 |
|
Actuarial gain on defined benefit pension scheme |
- |
- |
- |
- |
287 |
287 |
|
30 September 2007 |
2,035 |
86,968 |
7,544 |
4,562 |
14,223 |
115,332 |
|
Profit for the period |
- |
- |
- |
- |
15,353 |
15,353 |
|
Dividends |
- |
- |
- |
- |
(7,248) |
(7,248) |
|
Issue of shares |
38 |
2,384 |
- |
- |
- |
2,422 |
|
Revaluation |
- |
- |
(600) |
- |
- |
(600) |
|
Deferred tax on items taken directly to equity |
- |
- |
168 |
- |
(685) |
(517) |
|
Share based payments |
- |
- |
- |
- |
313 |
313 |
|
Actuarial loss on defined benefit pension scheme |
- |
- |
- |
- |
(1,570) |
(1,570) |
|
30 March 2008 |
2,073 |
89,352 |
7,112 |
4,562 |
20,386 |
123,485 |
17. Provisions
Where there are any remaining legal actions in relation to split capital trusts the estimated liability has been included in other creditors with the insurance debtor included in other debtors. These amounts have not been separately disclosed as the disclosure would be seriously prejudicial to the Group.
Funds
|
At 30 March 2008 |
At 31 March 2007 |
At 30 September 2007 |
|
|
£ Billion |
£ Billion |
£ Billion |
|
|
In Group's nominee or sponsored member |
10.2 |
9.9 |
10.4 |
|
Stock not held in Group's nominee |
0.2 |
0.2 |
0.3 |
|
Discretionary funds under management |
10.4 |
10.1 |
10.7 |
|
In Group's nominee or sponsored member |
7.4 |
8.2 |
8.2 |
|
Other funds where valuations are carried out but where the stock is not under the Group's control |
2.1 |
2.9 |
2.7 |
|
Advisory funds under management |
9.5 |
11.1 |
10.9 |
|
Managed funds |
19.9 |
21.2 |
21.6 |
|
In Group's nominee or sponsored member |
2.8 |
2.6 |
3.2 |
|
Stock not held in Group's nominee |
0.3 |
0.4 |
0.3 |
|
Execution only stock |
3.1 |
3.0 |
3.5 |
|
Total funds |
23.0 |
24.2 |
25.1 |
|
Stock |
|||
|
In Group's nominee or sponsored member |
20.4 |
20.7 |
21.8 |
|
Stock not held in Group's nominee |
2.6 |
3.5 |
3.3 |
|
23.0 |
24.2 |
25.1 |
|
Responsibility Statement
We confirm that to the best of our 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
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
Finance Director
R A Bayford
29 May 2008
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 30 March 2008 which comprises the consolidated income statement, the consolidated statement of recognised income and expense, the consolidated balance sheet, the 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 2410 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 1, 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 30 March 2008 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 & Touche LLP
Chartered Accountants and Registered Auditors
London, United Kingdom
29 May 2008
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