Brewin Dolphin increases its 2014 final dividend by 24%

DividendMax Ltd.

Brewin Dolphin increases its 2014 final dividend by 24%

Financial highlights

Strong growth in discretionary funds up 13% to £24.0 billion (29 September 2013: £21.3 billion).

Total income of £290.5 million (29 September 2013: £283.7 million), an increase of 2%.

Fee income increased by 17% to £177.3m (29 September 2013: £152.0 million).

Commission income declined by 5% to £88.6 million (29 September 2013: £93.5 million) in line with reduced transaction volumes resulting from market volatility in the second half.

Statutory profit before tax of £8.6 million (29 September 2013: £28.4 million) a decrease of 70%, due to previously announced exceptional write off.

Substantial increase in exceptional costs to £38.0 million, including previously announced write off of major technology project (29 September 2013: £12.1 million).

Adjusted profit before tax £60.2 million (29 September 2013: £52.1 million), an increase of 16%.

Adjusted profit before tax margin increased to 20.7% (29 September 2013: 18.4%).

Strong balance sheet underpinned by growing cash generation with net cash of £135.1 million (29 September 2013: £113.5 million).

Diluted adjusted earnings per share 16.5p (29 September 2013: 14.8p) an increase of 11%.

Diluted earnings per share of 2.4p (29 September 2013: 8.0p) a decrease of 70%.

Final dividend increased by 24% to 6.25p, full year dividend up by 15% to 9.9p.

Business Highlights

Overall good progress on improving underlying business performance and profitability.

Decision taken to limit implementation of new operating software under development to execution only business.

Discretionary funds grew by 7%, excluding investment performance, largely driven by growing financial intermediary sources of new client funds.

Discretionary funds represent 82% of total managed funds, ahead of 80% target.

Good progress on achieving the stated margin target for adjusted profit before tax of 25% by end of 2016.

Further restructuring and reinvestment in the business as part of transformation strategy:

- Operational savings being achieved through focus on core discretionary business.

- Investment in client service - design and implementation of enhanced client advice process begun during the year.

- Strengthening the business - investment in operational processes and key management resources.

Declaration of dividend

The Board proposes a final dividend of 6.25p per share, to be approved at the 2015 AGM and payable on 23 March 2015 to shareholders on the register at close of business on 6 March 2015, with an ex-dividend date of 4 March 2015.

Companies mentioned