26th Jul 2017 07:00
26 July 2017
Brewin Dolphin Holdings PLC
Interim Management Statement
For the quarter ended 30 June 2017
Brewin Dolphin Holdings PLC (the "Company" or the "Group") today issues the following Interim Management Statement for the third quarter of the financial year ending 30 September 2017.
Q3 Highlights
· Continued strong organic fund inflows further demonstrating the Group's continuing delivery against its strategic plan.
· Total funds increased in the quarter by 3.7% to £39.2bn including acquired funds (H1 2017: £37.8bn, FY 2016: £35.4bn).
o Discretionary funds increased by 4.4% in the quarter to £32.9bn including £0.7bn of acquired funds (H1 2017: £31.5bn, FY 2016: £28.8bn).
o Net discretionary organic fund inflows, including transfers, of £0.6bn (Q3 2016: £0.3bn) representing an annualised growth rate of 7.6% (Q3 2016: 4.1%).
· Record total income for the quarter of £77.3m (Q3 2016: £71.3m) an increase of 8.4%.
o Core1 income growth of 11.0% in the quarter to £73.9m (Q3 2016: £66.6m).
o Total fee income growth of 16.0% in the quarter to £55.0m (Q3 2016: £47.4m).
o Total commission income of £16.7m (Q3 2016: £18.8m).
· Completion of the acquisition of Duncan Lawrie Asset Management Limited ("DLAM") on 10 May 2017 with funds of £0.7bn acquired.
1 Core income is defined as income derived from discretionary investment management, financial planning, Brewin Portfolio Service ("BPS") and execution only services.
David Nicol, Chief Executive said:
"The second half of the year has started well with record income and continued organic fund growth in our core discretionary business underlining the strength of the Group. The integration of DLAM is making good progress and we are delighted to have welcomed our new colleagues. We continue to make steady progress in delivering against our long-term growth strategy and our confidence in the future is underpinned by our robust financial position."
Funds
Total funds by service category
Change | |||||||
£'bn | 30 June 2016 | 30 Sept2016 | 31 March2017 | 30 June2017 | Last 12 months | Last 9 months | Last 3 months |
Discretionary | |||||||
Direct | 19.8 | 21.1 | 22.4 | 23.2 | 17.2% | 10.0% | 3.6% |
Intermediaries | 5.9 | 6.5 | 7.3 | 7.7 | 30.5% | 18.5% | 5.5% |
MPS | 1.0 | 1.2 | 1.8 | 2.0 | 100.0% | 66.7% | 11.1% |
Total discretionary | 26.7 | 28.8 | 31.5 | 32.9 | 23.2% | 14.2% | 4.4% |
BPS | 0.1 | 0.1 | 0.1 | 0.1 | 0.0% | 0.0% | 0.0% |
Execution only | 3.6 | 3.5 | 3.4 | 3.5 | (2.8)% | 0.0% | 2.9% |
Core funds | 30.4 | 32.4 | 35.0 | 36.5 | 20.1% | 12.7% | 4.3% |
Advisory | 3.1 | 3.0 | 2.8 | 2.7 | (12.9)% | (10.0)% | (3.6)% |
Total funds | 33.5 | 35.4 | 37.8 | 39.2 | 17.0% | 10.7% | 3.7% |
Indices | |||||||
MSCI WMA Private Investor Balanced Index | 1,382 | 1,457 | 1,536 | 1,533 | 10.9% | 5.2% | (0.2)% |
FTSE 100 | 6,504 | 6,899 | 7,323 | 7,313 | 12.4% | 6.0% | (0.1)% |
Funds flow by service category - detailed movement1 in the quarter
£'bn | 31 March2017 | Inflows | Outflows | Internal transfers | Net flows | Growth rate* | Acquired | Investment performance | 30 June2017 |
Discretionary | |||||||||
Direct | 22.4 | 0.2 | (0.2) | - | - | 0.0% | 0.6 | 0.2 | 23.2 |
Intermediaries | 7.3 | 0.4 | (0.1) | - | 0.3 | 16.4% | - | - | 7.7 |
MPS | 1.8 | 0.3 | - | - | 0.3 | 66.7% | - | - | 2.0 |
Total discretionary | 31.5 | 0.9 | (0.3) | - | 0.6 | 7.6% | 0.6 | 0.2 | 32.9 |
BPS | 0.1 | - | - | - | - | 0.0% | - | - | 0.1 |
Execution only | 3.4 | 0.1 | (0.1) | - | - | 0.0% | 0.1 | - | 3.5 |
Core funds | 35.0 | 1.0 | (0.4) | - | 0.6 | 6.9% | 0.7 | 0.2 | 36.5 |
Advisory | 2.8 | - | - | (0.1) | (0.1) | (14.3)% | - | - | 2.7 |
Total funds | 37.8 | 1.0 | (0.4) | (0.1) | 0.5 | 5.3% | 0.7 | 0.2 | 39.2 |
* annualised |
Notes
1 The above funds figures are rounded to one decimal place and therefore may not always cast.
Funds flow by service category - detailed movement1 year to date
£'bn | 30 Sept2016 | Inflows | Outflows | Internal transfers | Net flows | Growth rate* | Acquired | Investment performance | 30 June2017 |
Discretionary | |||||||||
Direct | 21.1 | 0.7 | (0.6) | 0.1 | 0.2 | 1.3% | 0.6 | 1.3 | 23.2 |
Intermediaries | 6.5 | 1.0 | (0.2) | - | 0.8 | 16.4% | - | 0.4 | 7.7 |
MPS | 1.2 | 0.7 | - | - | 0.7 | 77.8% | - | 0.1 | 2.0 |
Total discretionary | 28.8 | 2.4 | (0.8) | 0.1 | 1.7 | 7.9% | 0.6 | 1.8 | 32.9 |
BPS | 0.1 | - | - | - | - | 0.0% | - | - | 0.1 |
Execution only | 3.5 | 0.3 | (0.7) | 0.2 | (0.2) | (7.6)% | 0.1 | 0.1 | 3.5 |
Core funds | 32.4 | 2.7 | (1.5) | 0.3 | 1.5 | 6.2% | 0.7 | 1.9 | 36.5 |
Advisory | 3.0 | - | (0.1) | (0.3) | (0.4) | (17.8)% | - | 0.1 | 2.7 |
Total funds | 35.4 | 2.7 | (1.6) | - | 1.1 | 4.1% | 0.7 | 2.0 | 39.2 |
* annualised |
Notes
1 The above funds figures are rounded to one decimal place and therefore may not always cast.
Income
Third Quarter Ended | Nine Months Ended | ||||||
£'m | 30 June 2017 | 30 June 2016 | Change | 30 June 2017 | 30 June 2016 | Change | |
Discretionary investment management | 65.7 | 59.4 | 10.6% | 190.9 | 171.7 | 11.2% | |
Financial planning | 5.3 | 4.5 | 17.8% | 14.8 | 12.6 | 17.5% | |
BPS | 0.2 | 0.2 | 0.0% | 0.7 | 0.6 | 16.7% | |
Execution only | 2.7 | 2.5 | 8.0% | 7.8 | 7.8 | 0.0% | |
Core income | 73.9 | 66.6 | 11.0% | 214.2 | 192.7 | 11.2% | |
Advisory investment management | 3.1 | 4.1 | (24.4)% | 10.0 | 12.2 | (18.0)% | |
Trail income | - | 0.1 | (100.0)% | - | 1.9 | (100.0)% | |
Interest | 0.3 | 0.5 | (40.0)% | 0.5 | 1.7 | (70.6)% | |
Non-core income | 3.4 | 4.7 | (27.7)% | 10.5 | 15.8 | (33.5)% | |
Total income | 77.3 | 71.3 | 8.4% | 224.7 | 208.5 | 7.8% | |
Fees and Commissions
Third Quarter Ended | Nine Months Ended | ||||||
£'m | 30 June 2017 | 30 June 2016 | Change | 30 June 2017 | 30 June 2016 | Change | |
Core fees | 52.8 | 44.6 | 18.4% | 152.7 | 131.6 | 16.0% | |
Core commissions | 15.7 | 17.5 | (10.3)% | 46.6 | 48.5 | (3.9)% | |
Advisory fees | 2.2 | 2.8 | (21.4)% | 7.0 | 8.4 | (16.7)% | |
Advisory commissions | 1.0 | 1.3 | (23.1)% | 3.1 | 3.8 | (18.4)% | |
Total fees | 55.0 | 47.4 | 16.0% | 159.7 | 140.0 | 14.1% | |
Total commissions | 16.7 | 18.8 | (11.2)% | 49.7 | 52.3 | (5.0)% | |
Financial planning | 5.3 | 4.5 | 17.8% | 14.8 | 12.6 | 17.5% | |
Other income | 0.3 | 0.6 | (50.0)% | 0.5 | 3.6 | (86.1)% | |
Total income | 77.3 | 71.3 | 8.4% | 224.7 | 208.5 | 7.8% | |
For further information:
Brewin Dolphin Holdings PLC |
|
David Nicol, Chief Executive | Tel: +44 (0)20 7248 4400 |
Andrew Westenberger, Finance Director | Tel: +44 (0)20 7248 4400 |
FTI Consulting |
|
Edward Berry | Tel: +44 (0)20 3727 1046 |
Notes to Editors:
About Brewin Dolphin
Brewin Dolphin is one of the UK's leading independent providers of discretionary wealth management.
Our focus on discretionary investment management has led to growth in client funds and we now manage £32.9 billion 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.
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