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Brewin Dolphin FY profit falls but total funds rise
27th Nov 2019 09:23
(Sharecast News) - FTSE 250 wealth manager Brewin Dolphin reported a fall in full-year pre-tax profits on Wednesday as costs rose due to planned spending on growth initiatives and infrastructure projects, but total funds increased.
In the year to the end of September, statutory pre-tax profit was down 8.6% to £62.6m while adjusted pre-tax profit was 3.2% lower at £75m. Total costs excluding adjusted items rose 5.3% during the year to £265.7m.
"The expected increase in costs has been into growth initiatives and infrastructure projects which will lay the foundations for future growth," the company said.
Total funds pushed up 5.1% to £45bn, with discretionary funds up 3.7%. The full-year dividend was 16.4p, taking the final dividend to 12p per share, in line with 2018.
Chief executive David 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."
At 0920 GMT, the shares were down 1.1% at 338p.
In the year to the end of September, statutory pre-tax profit was down 8.6% to £62.6m while adjusted pre-tax profit was 3.2% lower at £75m. Total costs excluding adjusted items rose 5.3% during the year to £265.7m.
"The expected increase in costs has been into growth initiatives and infrastructure projects which will lay the foundations for future growth," the company said.
Total funds pushed up 5.1% to £45bn, with discretionary funds up 3.7%. The full-year dividend was 16.4p, taking the final dividend to 12p per share, in line with 2018.
Chief executive David 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."
At 0920 GMT, the shares were down 1.1% at 338p.