1st Oct 2009 07:00
01 October 2009
Brewin Dolphin Holdings PLC (the "Company")
Pre Closing Trading Update and Accounting Policy Change
Trading Update
Following the completion of the financial year to 27 September 2009, the Company is issuing the following trading update. Performance in the last quarter has been strong and results for the year will be at the top end of the Board's expectations.
Change in Accounting Policy
After a long and constructive dialogue with the Financial Reporting Review Panel, we have considered the additional clarification which the forthcoming standard, IFRS 3 (2008) brings to the recognition of intangible assets and the various practices currently applied by firms in the purchase of investment management businesses. We have therefore retrospectively changed our accounting policy adopted in 2005, so that payments to acquire teams of investment managers, bringing with them funds under management, have been re-classified as the intangible asset, "client relationships", rather than goodwill.
The main changes are as follows:-
|
2008 |
2007 |
||||
|
Previously reported
|
As restated |
Previously reported |
As restated |
||
|
£'000 |
£'000 |
£'000 |
£'000 |
||
|
Profit before tax and amortisation |
36,202 |
36,202 |
41,656 |
41,656 |
|
|
Amortisation of intangible assets |
- |
(4,244) |
- |
(1,774) |
|
|
Profit before tax |
36,202 |
31,958 |
41,656 |
39,882 |
|
|
Taxation |
(11,127) |
(9,939) |
(12,708) |
(12,211) |
|
|
Profit after taxation |
25,075 |
22,019 |
28,948 |
27,671 |
|
|
Fully diluted earning per share pre amortisation |
11.7p |
11.7p |
13.8p |
13.8p |
|
|
Fully diluted earning per share post amortisation |
- |
10.3p |
- |
13.2p |
|
|
2008 |
2007 |
||||
|
Previously reported
|
As restated |
Previously reported |
As restated |
||
|
£'m
|
£'m |
£'m |
£'m |
||
|
Net assets |
125.2 |
119.9 |
115.3 |
113.1 |
|
|
Intangible assets |
|||||
|
Goodwill |
93.0 |
48.4 |
65.8 |
47.8 |
|
|
Client relationships |
- |
37.3 |
- |
14.9 |
|
|
93.0 |
85.7 |
65.8 |
62.7 |
||
Amortisation of client relationships in our 2009 accounts is expected to be in the region of £6.5m.
Value of "Client Relationships"
We spent £24.3m in 2008 on client relationships. We are happy to report that funds under management acquired in relation to these acquisitions amounted to £2.2bn as at 28 August 2009; £24.3m represents a cost of funds of 1.1%.
For further information please contact:
|
Jamie Matheson |
Andrew Hayes/Wendy Baker |
|
Executive Chairman |
Hudson Sandler |
|
Brewin Dolphin |
020 7796 4133 |
|
020 7248 4400 |
Related Shares:
BRW.L