Brewin Dolphin posts ‘resilient’ results as expansion plan hits profit
Brewin Dolphin has boosted its funds under management but took a hit to profit for the full year as it pursues a rapid expansion plan.
The asset manager increased its total funds more than five per cent to £45bn in the year to the end of September, including inflows of £1.4bn. Total income also rose roughly three per cent to £339.1m.
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However, the firm reported a three per cent slip in pre-tax profit over the period to £75m as it pumps funds into its expansion strategy.
Brewin made three acquisitions over the year, while its takeover of Investec’s Irish wealth management business completed at the end of October. It is also rolling out a major upgrade of its IT systems.
Chief executive David Nicol welcomed the “resilient” growth against an uncertain economic and political backdrop. Shares in Brewin Dolphin rose more than two per cent following the announcement.
The firm’s 1762 proposition, which provides services to high net worth individuals, more than doubled its team numbers from 17 to 44 over the year.
Nicol told City PM the appointments helped to bolster the asset manager’s ability to offer a broad range of services to its clients.
He added that Brewin had set itself apart by providing a strong regional presence, and said its marketing push had helped to establish a strong brand.
“These initiatives are laying the foundations for long-term growth and will ensure that we are well placed to capture future market opportunities,” Nicol said.
Brewin Dolphin proposed a final dividend of 12p per share, unchanged on last year.