Brewin Dolphin disappoints
Tuesday 27 February 1996
This underperformance at a time when the stock market has been booming is partly a reflection of the group's own poor results. A "quiet" first quarter for the market last year cut half-way profits by just over a fifth. Full-year profits out yesterday show Brewin has only made up the shortfall in the full year by dint of acquisitions.
Pre-tax profits rose marginally to pounds 4.21m from pounds 4.03m and even that small increase was only possible through the addition of new offices, which added pounds 540,000 to these figures. Like-for-like operating profits fell from pounds 3.35m to pounds 2.79m.
The group's confidence is reflected in the 17 per cent increase in the dividend to 7p and, to be fair, Brewin is expanding rapidly. It has developed a reputation as a poacher, with teams defecting from rivals Quilter Goodison in Jersey and Allied Provincial's Birmingham office and, more litigiously, its Glasgow branch since June. The main contributors to the results were new offices purchased in Lymington, on the south coast, and at Marlborough.
The head count has risen from around 420 to over 500 in the space of a year, while funds under management are up 24 per cent to pounds 6.2bn. Within that, discretionary funds have grown a third to pounds 1.2bn and a further pounds 100m will come aboard with the imminent purchase of James Finlay Investment Management in Glasgow.
All this has proved a drag on profits, but house brokers Panmure Gordon believe Brewin is capable of pounds 5.3m in the current year, putting the shares, up 4p at 155p, on a forward rating of 9. Not expensive and the group's 40,000 clients are a valuable asset, but the controlling stake held by staff and associates means the market is thin.
- 1 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 2 Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
- 3 Amal Clooney gives excellent answer to fashion question at European Court of Human Rights
- 4 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 5 Isis publicly behead man in Syrian town square for 'insulting Allah' as he screams for help
Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
Amal Clooney gives excellent answer to fashion question at European Court of Human Rights
Sir David Attenborough interview: The one question about life that still baffles him
Isis publicly behead man in Syrian town square for 'insulting Allah' as he screams for help
One spelling error costs Companies House up to £9 million after being sued for ruining business
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
9 reasons Greece's experiment with the radical left is doomed to failure
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...
£16500 - £16640 per annum: Recruitment Genius: This fast growing Finance compa...