Brewin Dolphin has reported statutory pre-tax profit for the first half ended 31 March 2018 of £34.1 million; this represents a year on year increase of 19.8 percent.
Total income reached £161.8 million, up 9.8 percent. Core income, defined as income from discretionary investment management, financial planning, Brewin Portfolio Service (BPS) and execution only services, was up 11.4 percent to £156.3 million.
Private clients contributed £92.3 million in income, 7.5 percent more than the same period the previous year. Charities and corporates contributed £11.3 billion, 4.6 percent more. Intermediaries contributed £31.1 million, up 18.7 percent, and MPS contributed £3.5 million, up 52.2 percent.
Total fee income was up 10.4 percent to £115.6 million and represented 71.4 percent of total income. Commission income was £32.9 million.
Total funds reached £39.7 billion, up five percent year on year. Net funds flows of £0.9 billion during the period offset by lower investment returns, the firm said, adding that since the start of the second half funds had increased. As at 30 April 2018 it said they were around £41 billion.
As at 31 March 2018, total discretionary funds were £34.3 billion, up 8.9 percent year on year. Of these discretionary funds, private clients accounted for £18.8 billion (4.4 percent higher year on year), charities and corporate accounted for £4.4 billion (level year on year), intermediaries accounted for £8.5 billion (up 16.4 percent) and MPS accounted for £2.6 billion (up 44.4 percent).
“In May 2017, the Group acquired Duncan Lawrie Asset Management Limited,” the firm said in its interim statement. “The acquisition contributed £3.1 million of income for the six months ended 31 March 2018 and £2.1 million to adjusted profit before tax (after associated staff costs of £0.7 million and administrative, overhead and variable costs of £0.3 million); this is equivalent to incremental adjusted diluted earnings per share of 0.4p. The impact on statutory profit before tax was a loss of £0.3 million and a reduction of 0.1p to statutory diluted earnings per share after the costs of incentivisation awards and amortisation attributable to the acquisition, both of which are excluded from the adjusted measures.”
Brewin Dolphin reported total fixed operating costs for the first half of £94.2 million up 5.1 percent. Fixed staff costs increased by 4.9 percent to £57.8 million, as a result of “higher average headcount, the H2 2017 acquisition, pay rises and higher cost of sales from the continued intermediary net inflows.”