Brewin Dolphin Holdings PLC (LON:BRW), today announced preliminary results for the year ended 30th September 2018.
Financial Highlights
Another successful year for the Group, with our robust business model underpinning a strong financial performance and supporting the delivery of our strategy.
· Total funds of £42.8bn, an increase of 6.7% (FY 2017: £40.1bn).
· Discretionary funds of £37.6bn, an increase of 11.2% (FY 2017: £33.8bn).
o Net discretionary funds inflows, including transfers, of £2.3bn (FY 2017: £2.3bn) equalled the record inflows from the prior year and represents an annualised growth rate of 6.8% (FY 2017: 8.0%).
· Total income for the period of £329.0m (FY 2017: £304.5m).
o Core1 income of £319.7m increased by 9.9% (FY 2017: £291.0m).
o Core fee income excluding financial planning of £229.2m (FY 2017: £207.9m), increased by 10.2% and represents 71.7% of total core income (FY 2017: 71.4%); core commission income increased to £66.0m (FY 2017: £62.3m) due to increased volumes and higher average trade values.
o Financial planning income grew 17.8% to £24.5m (FY 2017: £20.8m) with recurring income growing strongly.
· Adjusted2 profit before tax of £77.5m increased by 10.7%3 (FY 2017: £70.0m).
o Our disciplined and efficient approach to the initiatives outlined in 2017 is reflected in an improved adjusted2 profit before tax margin of 23.6% (FY 2017: 23.0%).
· Statutory profit before tax of £68.5m, 18.9%3 higher than FY 2017 (£57.6m).
o Statutory profit before tax margin of 20.8% (FY 2017: 18.9%).
· Adjusted2 earnings per share:
o Basic earnings per share increased by 9.8% to 22.5p (FY 2017: 20.5p).
o Diluted earnings per share4 increased by 10.7% to 21.7p (FY 2017: 19.6p).
· Statutory earnings per share:
o Basic earnings per share of 19.5p (FY 2017: 16.5p).
o Diluted earnings per share of 18.9p (FY 2017: 16.0p).
· Full year dividend increase of 9.3% to 16.4p (2017: 15.0p), final dividend of 12.0p per share (2017: 10.75p per share) an increase of 11.6%.
1 Core income is defined as income derived from discretionary investment management, financial planning, Brewin Portfolio Service (“BPS”) and execution only services.
2 See Financial Review for a reconciliation of adjusted profit before tax to statutory profit before tax and an explanation of adjusted performance measures.
3 Excluding the impact of the H2 2017 acquisition, adjusted profit before tax increased by 7.5% and statutory profit before tax increased by 14.9%
4 See note 9.
Business Highlights
· Continued strong funds growth, driven by another year of positive net inflows and the full year effect of the H2 2017 acquisition.
· Positive direct discretionary net flows and the depth of our intermediaries’ relationships delivering long term funds growth.
· Targeted investments in people, infrastructure and innovation.
· Balance sheet remains strong, underpinning the delivery of our growth strategy.
Declaration of Final Dividend
The Board is proposing a final dividend of 12.0p per share, to be approved at the 2019 AGM and to be paid on 6 February 2019 to shareholders on the register at the close of business on 11 January 2019 with an ex-dividend date of 10 January 2019.
David Nicol, Brewin Dolphin Chief Executive, said:
“2018 was another successful year for the Group, proving the continued value of our personalised advice-led model. Above target organic fund inflows have led to strong earnings and dividend growth. The investment in our services, people and technology are delivering results and we have broadened our range of services so we can capture future growth opportunities. At a time of uncertainty we remain confident in our growth prospects.”
