logo-loader
viewBrewin Dolphin

Brewin Dolphin maintains interim dividend as adapts to coronavirus

Total funds under administration decreased 14% when excluding those funds added via acquisition

Brewin Dolphin  -

Brewin Dolphin Holdings PLC (LON:BRW) declared a dividend for the past six month period as the wealth manager said coronavirus has led to increased client engagement demand for financial advice.

Total funds ended the half-year to 31 March at £41.4bn, down 8% from £45bn at the end of September. 

Total funds decreased by 14% when excluding the £2.7bn of funds added via acquisitions, with discretionary funds falling to £35.7bn from £40.1bn mostly due to negative market performance.

Income for the period increased 8.3% to £175.8mln and underlying profits were up 2.5% to £36.5mln, with statutory profit before tax down 5.1% to £28.2mln.

The board declared an interim dividend of 4.4p per share, flat on last year.

“We have been able to adapt and respond to the current pandemic at pace led by an experienced and agile leadership team and are confident we can adapt our operating and cost model appropriately,” said chief executive David Nicol, saying the business was able to quickly move to a remote operating model.

“We increased our engagement with our clients, and saw increased demand for financial advice, which we were able to offer remotely.”

Monitoring the impact of the pandemic on the business, the board has identified cost savings of £6-8mln, “mostly non-staff related”, that could be applied during the second half of the financial year. 

“We will have further clarity on the impact of COVID-19 over the summer, at which point we would expect to consider further actions to support us beyond FY 2020,” he said.

“In periods of uncertainty we believe our advice-led services are required more than ever. We have a strong balance sheet with good cash generation, and a robust regulatory capital position, which will support us during these challenging market and social economic cycles.”

Brewin Dolphin shares were up 2% to 274.26p on Wednesday morning.

Quick facts: Brewin Dolphin

Price: 251 GBX

LSE:BRW
Market: LSE
Market Cap: £761.11 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Electric vehicle sales to accelerate following coronavirus pandemic

Roskill analyst Jose Lazuen tells Proactive London's Andrew Scott severe falls were expected in EV sales but that European and Chinese policies coupled with consumer preferences have shown them to remain strong. He adds that policy is going to favour and push EV sales in certain jurisdictions...

12 hours, 11 minutes ago

2 min read