Brewin Dolphin sees encouraging progress

Brewin Dolphin Holdings reports encouraging progress in the year to the end of September with total funds of £35.4bn, up 10.6%. Discretionary funds increased by 16.5% to £28.9bn.

This compares to an increase of 13.8% in the FTSE 100 Index and a 14.4% increase in the FTSE WMA Private Investor Series Balanced Portfolio Index.

Total net discretionary funds inflows, including transfers, of £1.1bn represented an annualised growth rate of 4.4% (2015: 4.6%). Total income was stable at £282.4m (2015: £283.7m) while core income was up 4.8% at £263.3m (2015: £251.3m).

Fee income increased by 1.1% to £190.5m (2015: £188.5m), representing 67.4% of total income (2015: 66.4%); commission income was £71.0m (2015: £71.5m). Other income was in line with expectations at £19.1m (2015: £32.4m).

Other highlights:

- Statutory profit before tax of £50.1m (2015: £61.0m, which included a one-off gain of £9.7m)

- Discontinued operations profit before tax of £14.0m, reflecting receipt of disposal proceeds (2015: £10.4m loss before tax)

- Full year dividend increase of 8.3% to 13.0p (2015:12.0p), final dividend of 9.15p per share (2015: 8.25p per share), an increase of 10.9%

Chief executive David Nicol said: "We have made encouraging progress in 2016. Financial performance has been resilient against the increasingly volatile and uncertain market backdrop. The strategic transition we have undergone over the last few years, focusing on our core services of discretionary investment management and financial advice, coupled with improving operational efficiency is further evident in 2016 in terms of the continued growth in the core business.

"Good progress has been made against the growth objectives we have set ourselves as part of this strategy, in particular in the development and innovation of existing and new services to meet different client needs.

"The near term market outlook is clearly marked by the heightened sense of political and economic uncertainty, both in the UK and elsewhere. Nonetheless, I believe our business, which is financially strong and willing to innovate and adopt new approaches alongside our traditional values, is well placed to withstand any near term downturns whilst remaining focused on implementing our growth plans. In doing this we are confident of capturing future long term growth opportunities."

At 8:02am: (LON:BRW) Brewin Dolphin Holdings PLC share price was +5.65p at 268.55p