Brewin Dolphin grows annual income

4th Dec 2013 07:14

- Improved total managed funds, strong discretionary funds- Total income up by 5.3 per cent- Dividend increased 20 per centWealth management firm Brewin Dolphin posted a solid increase in annual funds under management, fuelled by discretionary investment, and underlined its confidence in future trading with a 20 per cent increase in its full year dividend.The FSTE 250-firm said total managed funds at September 29th rose to £28.2bn from £25.9bn the same time a year earlier. Brewin reported strong growth in discretionary funds, which command larger fees, to £21.3bn compared to £18.2bn previously. Total income rose 5.3% to £283.7m.However, pre-tax profit slipped 4% to £28.6m after significant restructuring costs and provisions for contracts. Basic earnings per share slipped to 8.5p from 9.1p.Chief Executive David Nicol said: "Discretionary Investment Management is currently the core of our business model and our mission is to provide a compelling and consistent offering, relevant to all our clients." Brewin, which is two and a half years into the transformation and growth strategy announced in 2011 to boost strong growth and efficiency, outlined its evolution from a stockbroker into a private client investment manager. "Our evolution must continue as we strive to become the leading provider of personal Discretionary Wealth Management in the UK," Nicol added.A full year dividend of 8.6p has been recommended, up by a fifth from last year.The group said it is implementing a new dividend policy from 2014 based on a target dividend payout ratio of 60%-80% of adjusted earnings per share (EPS).Brewin announced a new operating margin target of 25%, which it aims to achieve by the end of the financial year 2016.CJ