Brewin Dolphin Holdings profit surges while funds remain flat

Investment management firm Brewin Dolphin Holdings’ funds for the year were relatively flat, but statutory profit grew substantially as the company focuses on expansion.

The FTSE 250 company released its preliminary results for the year to 30 September on Wednesday.

It showed it held total funds of £32.0bn, marginally down from £32.5bn in 2014, with discretionary funds under management up from £24.0bn to £24.8bn.

Total income was up 1% for the year to £283.7m, with core income up 5% to £251.3m but with a 12% decline in commission income to £71.5m.

Statutory profit before tax surged from £6.8m to £61.0m due costs associated with the termination of new software last year.

Excluding other exceptional items, adjusted profit rose 7% from £58.4m to £62.2m.

The company also proposed a final dividend of 8.25p per share, taking the total dividend for the year to 12p.

Chief executive David Nicol said it’s been a good year for the company as it continued to provide a transparent, convenient service, delivering value to clients.

"Initiatives to enhance key aspects of our business have culminated this year with the renewal of our client advice process and are now substantially complete.

“Expansion is now firmly on our agenda and we are in a strong position to take advantage of opportunities."

Shares in the company surged in early trading, up 12.5p (4.85%) to 270p at 0842 GMT.