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Brewin Dolphin hails ‘exceptional year’ for inflows

Robin Beer

Robin Beer: delivering on growth ambitions

Brewin Dolphin chief executive Robin Beer, has hailed “an exceptional year” after the wealth manager achieved record discretionary inflows.

He said the firm remained on course to deliver double digit earnings per share growth by 2025.

“We have had an exceptional year achieving record discretionary inflows and are delivering on our growth ambitions,” he said.

“We expect operating costs to grow mid to high single digit percent due to cost inflation, depreciation from our technology investments, investment in our business to support future growth, and parallel running costs of our custody and settlement.”

Profit rose in the year to the end of September and the dividend is hiked, though it has recognised more than £3.6m in costs related to an abandoned move to a new London HQ leased in 2019,

Strong total discretionary net flows of £1.9bn (FY 2020: £0.9bn), representing an annualised growth rate of 4.6%. helped the firm post a 16.2% rise in annual adjusted pre-tax profit to £90.9m (FY 2020: £78.2m), with a margin of 22.4%.

Total funds increased by 19.5% over the last 12 months to £56.9bn (FY 2020: £47.6bn). Total discretionary funds increased 20.9% to £49.8bn (FY 2020: £41.2bn) driven by positive net flows and strong investment performance.

The board is proposing a 12.% rise in the final dividend to 11.1p per share, lifting the full-year payout from 14.3p to 15.7p. This is below the pre-pandemic payouts of 16.4p in 2019 and 2018.

In mid-morning the shares were trading 19.50p (5.19%) lower at 356p.

Marc Wilkinson, regional director for Scotland, said: “Edinbugh remains one the most important offices in our UK network, while Glasgow has performed very well on the back of new business wins.

“Aberdeen and Dundee continue to benefit from the growing community of entrepreneurs in both cities.  

“Perhaps unsurprisingly, the rise in inflation has been a particularly prominent concern for our existing clients and new enquiries, while volatility continues to affect markets and potential tax changes are also on people’s minds.”

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