Brewin Dolphin profit rises as discretionary funds, net inflows grow

Wealth manager Brewin Dolphin posted a 20% jump in interim pre-tax profit on Wednesday as discretionary funds and net inflows grew.

In the half year ended 31 March, statutory pre-tax profit rose to £34.1m from £28.4m in the same period a year ago, while adjusted pre-tax profit was up 19.8% to £38.8m. This came as discretionary funds pushed up 1.5% to £34.3bn, with net discretionary fund inflows of £1.3bn compared to £1.1bn the year before.

Total income for the period rose to £161.8m from £147.4m and the company lifted its interim dividend by 3.5% to 4.4p a share.

Total assets under management as at 31 March fell to £39.7bn from £41.5bn as at 31 December 2017 and £40.1bn as at 30 September 2017 on the back of weak equity markets. However, there was a pick-up in April, with total funds at around £41bn, almost recovering to the levels seen in December.

Chief executive David Nicol said: "I am pleased to report a robust first half of our financial year with strong net discretionary inflows, despite challenges in the wider market. We continue to deliver against our strategy and build on the positive momentum across the business. We remain positive in our outlook and confident in the strength and increasing relevance of our advice-led service."

RBC Capital Markets said net discretionary fund flows were ahead of its forecast of £1bn, equating to an "impressive" 7.7% of opening assets, which continues to compare favourably with peers.

At 0935 BST, the shares were up 1.9% to 388.20p.