Brewin Dolphin profits to be at top end

1st Oct 2009 07:15

Stockbroker and fund manager Brewin Dolphin said third quarter performance has been strong and results for the full year should be at the upper end of the board’s expectations.After consulting with the Financial Reporting Review Panel the company has decided on an accounting policy change, so that payments to acquire teams of investment managers, bringing with them funds under management, have been re-classified as the intangible asset, 'client relationships', rather than goodwill.The effective result of this is that profit after tax for 2008 has been restated from £25.08m to £22.02m, while net assets for 2008 have been revised down to £119.9m from £125.2m.Intangible assets, previously reported as £93m, have been revised down to £85.7m and consist of £48.4m on goodwill and £37.3m of goodwill.Amortisation of client relationships in the 2009 accounts is expected to be in the region of £6.5m.‘We spent £24.3m in 2008 on client relationships. We are happy to report that funds under management acquired in relation to these acquisitions amounted to £2.2bn as at 28 August 2009; £24.3m represents a cost of funds of 1.1%,’ the company said.