Home Funds & Trusts Brewin Dolphin shares jump on rising funds report

Brewin Dolphin shares jump on rising funds report

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Brewin Dolphin shares jump on rising funds report

Brewin Dolphin Holdings plc (LON: BRW) have seen their shares jump after the firm reported a rise in funds across its financial year.

Brewin Dolphin plc is one of the largest British investment management and financial planning firms with 39 offices throughout the UK and Channel Islands.

Shares of Brewin Dolphin jumped 1.55% to 347p. 27/11/19 12:54BST.

At September 30, the asset manager’s total funds under management stood at £45 billion, up 5.1% from £42.8 billion at the same point a year ago.

Brewin Dolphin’s Direct Discretionary funds grew 4.8% to £26.3 billion, seeing a 6.6% rise in total Discretionary funds to £40.1 billion.

Brewin Dolphin reported impressive growth in July, despite tough market conditions as the firm alluded to tense political and economic barriers to trading.

It seems that this run of good results is expected to be translated across the full trading year.

However, the success has been matched by competitors such as Intermediate Capital Group (LON: ICP) and AJ Bell PLC (LON: AJB) who gave shareholders impressive updates.

However, the success has not been so widespread as Hansard Global Plc (LON: HSD) posted a modest growth report.

“This year has seen economic uncertainty resulting in subdued client activity; however, the performance of the business has held up very well. We have delivered organic net discretionary funds growth of 3.7%, and we remain on track to meet our target to grow new discretionary funds organically by a third by the end of financial 2020,” the asset manager said.

The FTSE250 (INDEXFTSE: MCX) listed firm saw £1.3 billion in net inflows with investment performance adding a further £600 million.

The “strong” inflows, the asset manager said, is proof the company has “continued to broaden”.

Brewin Dolphin saw their income rise by 3.1% in the year ending September 30, to £339.1 million from £329 million, but pretax profit slipped 8.6% to £62.6 million from £68.5 million.

“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,” said Chief Executive David Nicol.

He added: “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.”

Brewin Dolphin is proposing a final dividend of 12.0 pence per share, giving a full year dividend of 16.4p – both flat on the year before.

“The progress we have made over the past year means we can look ahead with considerable optimism,” Nicol concluded.