Brewin Dolphin increased funds despite "challenging" markets

In an interim management statement for the third quarter ended 30 June, the company said total funds increased by 2.1% to £33.5bn and total core funds increased by 3.1% to £30.4bn.

Discretionary funds rose by 3.5% to £26.8bn compared to the previous year. Total net discretionary funds inflow represented 4.1% of annualised growth of £0.3bn.

Total income was up 1% to £71.3m and core income growth of 5.4% to £66.6m was driven by organic discretionary fund growth and improved commission levels. Other income declined to £4.7m from £7.4m last year.

Chief Executive David Nicol said: "It has been another quarter of steady progress towards our long-term growth goals. Our core discretionary business has continued to deliver organic funds flow and income growth, demonstrating its resilience in the face of uncertain market conditions.

“In times of market volatility our clients are increasingly looking to Brewin Dolphin to guide them through challenging investment markets. We remain committed to our growth initiatives and have made good progress during the quarter."

Shore Capital analyst, Paul McGinnis said: “While growth is currently a struggle, we think the current Brewin management team has done much of the heavy lifting in turning the business around from the weak situation they inherited just over three years ago.

“The company is currently trading on an enterprise value of just 1.6% of £33.5bn of total assets under management, of which £26.8bn is discretionary. Recent market transactions have taken place at substantial premiums to this level, and we think the company looks vulnerable at its current price... As such we maintain our buy recommendation”.

Shares in the FTSE 250 listed Brewin Dolphin were up 6.50% to 252.40p at 1025 BST.