preliminary results Year to 27 th September 2009
contents Overview 2 Results — Year to September 2009 3 Dividends 5 Investment Management excluding redundancy and amortisation of client relationships 6 Split of Income (Investment Management) 7 Investment Management — FUM 8 Return on Funds 9 New Teams and Branches 10 Brewin Dolphin Investment Banking Investment Banking excluding redundancy costs 12 Cash and Capital Adequacy 14 Break Even — Other Things Being Equal 15 Positives for the Future Enhancing the Brand 17 New Business Development 18 Awards 19 Strategy 20 Outlook 21 Appendix Analysis of Funds 23 Other Facts 24 Staff 25 Approach to Investment 26
2 overview · Resilience during a turbulent year · Benefits of scale and focus on our clients · 40 offices give national coverage · Increasing market focus on equity vs debt
3 results — year to september 2009 2009 2008 % Change (Restated) FTSE 100 Average for year 4,506 5,750 -21.6% £’000 £’000 Total Income 212,312 206,495 2.8% Salaries (75,552) (71,983) 5.0% Other Operating Costs (78,873) (70,607) 11.7% Profjt before profjt share* 57,887 63,905 -9.4% Profjt share (27,211) (33,217) -18.1% Operating Profjt* 30,676 30,688 0.0% Net Finance Income 1,467 6,148 -76.1% Profjt before tax* 32,143 36,836 -12.7% * Excluding redundancy costs and amortisation of client relationships
4 results — year to september 2009 2009 2008 (Restated) % Change £’000 £’000 Profjt before tax* 32,143 36,836 -12.7% Redundancy costs (3,638) (634) Intangible asset client relationship amortisation (6,566) (4,244) Profjt before tax 21,939 31,958 -31.4% Taxation (6,404) (9,939) Dividends (15,060) (14,771) 475 7,248 Earnings per share Basic Earnings per share 7.4p 10.7p -30.8% Diluted earnings per share 7.2p 10.3p -30.1% Earnings per share* Basic earnings per share 10.8p 12.4p -12.9% Diluted earnings per share 10.6p 11.9p -10.9% * Excluding redundancy costs and amortisation of client relationships
5 dividends Interim 3.55p maintained Final 3.55p maintained Total 7.10p maintained Strong fjnancial position – over £60m cash today.
6 investment management* 2009 2008 % change £000’s £000’s Revenue 178,944 174,170 2.7% Interest turn 25,071 19,526 28.4% Total income 204,015 193,696 5.3% Staff costs (71,562) (67,370) 6.2% Other operating costs (74,712) (64,326) 16.1% Total cost (146,274) (131,696) 11.1% Pre profit share profit 57,741 62,000 -6.8% Profit share (27,140) (32,310) -16.0% Operating profit 30,601 29,690 3.1% * Excluding redundancy costs and amortisation of client relationships
7 split of income investment management Recurring Income (54%) (2008: 55%) Non-recurring Income (46%) (2008: 45%)
8 investment management fum At 27 th Sept 09 At 28 th Sept 08 % change Indices FTSE APCIMS Private Investor Series Balanced Portfolio 2,640 2,586 2.1% FTSE 100 5,082 5,089 - 0.1% Funds Discretionary funds under management £11.8bn £10.2bn 15.7% Advisory funds under management £8.7bn £8.5bn 2.4% TOTAL MANAGED FUNDS £20.5bn £18.7bn 9.6%
9 return on funds 2007 2008 2009 2009 (adjusted for interest) Return on Discretionary Funds 1.13% 1.18% 1.27% 1.23% Return on Advisory Funds 0.66% 0.73% 0.96% 0.93%
10 new teams and branches 2009 – 6 New Teams including branches in Truro and Brighton loss making in first year (£0.4m) 2008 – 21 New Teams £2.0bn funds introduced to date (£1.3bn disc) Cost of funds acquired: 1.3% Net Profit in 2009: £1.5 m
11 brewin dolphin investment banking
12 investment banking eXcluding redundancy costs 2009 2008 % change £000’s £000’s Revenue 8,297 12,799 -35.2% Interest turn - - - Total income 8,297 12,799 -35.2% Staff costs (3,990) (5,113) -22.0% Other operating costs (4,161) (5,781) -28.0% Total cost (8,151) (10,894) -25.2% Pre profit share profit 146 1,905 -92.3% Profit share (71) (907) -92.2% Operating profit 75 998 -92.5%
13
14 cash and capital adequacy 2009 2008 Cash at year end £39m £34m Cash at end of November £60m £50m Capital adequacy surplus £11m £23m
15 break even – other things being equal FTSE In 2003 4,000 In 2007 3,600 In 2008 2,500 Now 2,500
16 positives for the future
17 enhancing the brand 0845 213 1000 brewin.co.uk Brewin Dolphin is a member of the London Stock Exchange and is authorised and regulated by the Financial Services Authority No.124444. At Brewin Dolphin, every investment relationship begins with a blank sheet of paper and the individual. Our investment managers have the freedom to choose from the whole investment market, as do their clients. There are no in-house funds to ‘push’ or ‘sell’, and we’re happy to give advice that is not always in our commercial interests. You see, we’re independently owned, and we’re free to tailor portfolios to the individual’s needs. So you’ll fjnd the way we do things is rather different to the way some other companies do them, and SOME OF OUR you’ll see that it all stems from the simple philosophy that guides RELATIONSHIPS everything we do: that the fjrst GO BACK thing we earn is your trust. FOUR GENERATIONS. THAT’S NOT JUST GREAT. SOME COMPANIES LISTENING TO WHAT USE COMPUTERS THAT’S GREAT-GREAT. OUR CLIENTS WANT TO MAKE BUYING AND HELPS US TAILOR-MAKE SELLING STOCK EACH PORTFOLIO TO DECISIONS. Our investment managers have found themselves SUIT THE INDIVIDUAL. doing some strange things CLEVER. for their clients over the IN OTHER WORDS, years. They’ve turned out for local cricket teams, BUT YOU TRY GETTING A WE LET YOU SPEAK BEFORE fed fish, even looked after COMPUTER TO MEET YOU’RE BESPOKEN TO. pet dogs. Unusual, but YOU IN THE CAFE ON with such a willingness to go beyond the call of PLATFORM 3 AT BRISTOL duty it’s no surprise that TEMPLE MEADS ON A clients tend to stay with us a long time. But neither is WET FRIDAY AFTERNOON. it unusual for relationships to last beyond a lifetime. Some of our investment At Brewin Dolphin, we don’t let computers make managers have helped the decisions that can affect your life and your several generations of the livelihood, only real people, individuals thinking same family. So, as well about their individual client’s circumstances and as all the other things we portfolio. That’s why we take time to talk with, meet do, you could say we look with, and often just chat about nothing with our after people’s kids too. clients, so we can better respond to their individual Perfect testimony to the wants, needs, and dare we say it, idiosyncrasies. simple philosophy that The reference in our headline is true, we do have guides everything we do: a client who always wants to meet in that particular that the first thing we cafe at that particular railway station. Unusual earn is your trust. maybe, but it does serve as an example of the same simple philosophy that guides everything we do: that the first thing we earn is your trust. 0845 213 1000 brewin.co.uk Brewin Dolphin is a member of the London Stock Exchange and is authorised and regulated by the Financial Services Authority No.124444. 0845 213 1000 brewin.co.uk Brewin Dolphin is a member of the London Stock Exchange and is authorised and regulated by the Financial Services Authority No.124444.
18 new business development 2008/09 Intermediaries sales team £235m New Charity team £200m Tax Wrappers and SIPPs £525m
19 awards Best Discretionary Broker at Shares Magazine Awards 2009 Outstanding Individual in Business Support and Best Market Newsletter in The Daily Telegraph Wealth Management Awards 2009
20 strategy · Leverage scale of UK’s largest independent investment manager · Build on recurring revenue and discretionary management · Retain and attract clients through high levels of customer service · Develop Investment Banking fmexible model to exploit market recovery · Attract and motivate talented people
21 outlook · More stable markets · National branch network now in place · Client base focus on long term equity investment · Business model and scale will support continued development
22 appendiX
23 analysis of funds · Discretionary £11.8bn · Advisory £8.7bn · Execution-only £4.1bn Total funds £24.6bn Discretionary Advisory Execution-only · Custody £22.5bn · Certifjcated £2.1bn Total funds £24.6bn
24 other facts · Assets under management Pensions funds and tax wrapped products ..................... £2.5bn Charitable funds ............................................................. £1.5bn ISAs ............................................................................... £2.5bn · 40 offices · Corporate Adviser to 103 quoted companies
25 staff · Total Staff at year end ............................... 1731 · FSA Approved Staff ........................................ 643 · Staff shareholders own ................................... 24.5%
26 approach to investment What makes us special is that the person who talks to the client makes the investment decisions. With the help of our: · Asset Allocation Committee · Strong research departments · Collective funds analysis service · Model portfolios management options · Strong compliance
Recommend
More recommend
