Profits steady at wealth manager
Brewin Dolphin ‘well placed’ as fee income rises
The company reported a slight dip in annual pre-tax profits to £61 million but fee income rose by 1.1% and the dividend is hiked by 8.3%.
David Nicol, chief executive, 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.”
Total funds of £35.4bn, up 10.6% (FY 2015: £32bn). Discretionary funds of £28.9bn, up 16.5% (FY 2015: £24.8bn) .
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 representing an annualised growth rate of 4.4% (2015: 4.6%).
Total income stable at £282.4m (2015: £283.7m). Core income up 4.8% to £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 in line with expectations at £19.1m (2015: £32.4m)
Adjusted profit before tax of £61m (2015: £62.2m)
Statutory profit before tax of £50.1m (2015: £61m, which included a one-off gain of £9.7m.)
Full year dividend increase of 8.3% to 13.0p (2015:12p), recommended final dividend of 9.15p per share (2015: 8.25p per share), an increase of 10.9%
Strong balance sheet, net cash of £170.8m (2015: £149.8m)
Record £2.7 billion of core organic gross inflows, including £0.9 billion gross inflows from intermediaries and £0.5 billion of funds into our model portfolios
30% of direct inflows, driven by financial planning
Managed portfolio services funds passed the £1 billion milestone, with funds at year end of more than £1.25 billion
Angela Knight will retire following the Annual General Meeting on 3 February. She was appointed as a Non-Executive Director in 2007. She became Senior Independent Director in 2014. She has agreed to continue her association with the group by staying on as chairman of Tilman Brewin Dolphin, the subsidiary in the Republic of Ireland.
Kath Cates, a Non-Executive Director of the Company since 2014, has agreed to replace Angela as Senior Independent Director.