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Laying foundations

Profits dip at Brewin Dolphin on investment in advice

Marc Wilkinson: ‘resilient year’

Wealth manager Brewin Dolphin reported a dip in full-year profits as it increased spending on growth initiatives and infrastructure projects.

Chief executive David Nicol said these initiatives are laying the foundations for long-term growth and will ensure the company is well-placed to capture market opportunities.

Profit before tax and adjusted items for the 12 months to the end of September came in 3.2% lower at £75m (2018: £77.5m) in-line with expectations. Statutory profit before tax was £62.6m or 8.6% lower (2018: £68.5m).

Total funds were £45bn, an increase of 5.1% (2018: £42.8bn). The company spent £265.7m excluding adjusted items (2018: £252.3m), a 5.3% increase due to planned spending on growth initiatives and infrastructure projects.

The company is recommending an unchanged final dividend of 12p and full year dividend 16.4p.

Post-financial year the firm completed the acquisition of Investec Capital and Investments (Ireland) Limited.

Mr Nicol said: “I am very pleased with our financial performance, particularly over the second half of the year. The group has continued to deliver strong and resilient organic growth, against the continued uncertain economic and political backdrop.

“This is demonstrated by the strength of our discretionary funds flows. Our strategy of focusing on our advice-led wealth management service continues to deliver results.

“We continue to invest in our business to support future long-term growth. We have completed and integrated a number of strategic acquisitions and the replacement of our core custody and settlement system is on track. These initiatives are laying the foundations for long-term growth and will ensure that we are well placed to capture future market opportunities.”

Marc Wilkinson, regional director for Scotland, said: “It has been a resilient year for Brewin Dolphin in Scotland.

“Our Scottish offices’ growth has largely been organic, winning new business directly, offering more services to our existing clients, and working with our partners in the independent financial advisor (IFA) sector. 

“We continue to build our financial planning capabilities and our range of clients.

“Our professional services offering has developed significantly in the past year and we’re approaching this sector in a new way, which has already yielded results. We are also gaining traction in the family law market.

“Looking ahead, our pipeline of new business remains strong and, while there may be more uncertainty ahead, we remain confident for the year to come”.

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