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Brewin's PS40m share placing plan.

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WEALTH management firm Brewin Dolphin has revealed plans to raise PS40m through a share placing after reporting a 26% increase in profits during the first half of its financial year.

Brewin Dolphin, which has 39 offices throughout the UK and Channel Islands and a major presence in Newcastle, reported that the firm's income for the half year ending March 31 rose by 9.4% to PS139m, with pre-tax profits up to PS23.8m.

The London-headquartered company now has total managed funds of PS28.1bn, with significant growth taking place in its management of discretionary funds, which increased to PS20.4bn compared to PS17.3bn at the same point last year.

Separate to the interim results, Brewin Dolphin announced plans to raise up to PS40m via a placing of up to 19,001,738 new ordinary shares in the company with existing and new investors, money which will enable it to continue its own investment plans and help drive shareholder returns.

The interim dividend was held at 3.55p a share and chief executive David Nicol said Brewin Dolphin was making good progress in its strategy to grow funds under management.

Nicol said: "We are now two years into the transformation and growth strategy announced in 2011.

"We have made good progress against our stated objectives including delivering strong growth in funds under management.

"Our strategy has two main objectives: continued strong growth and increased efficiency.

"These objectives are underpinned by a series of initiatives to transform the business which will improve efficiency, ensure it is best placed to meet regulatory demands and at the same time continue to enhance client service and improve shareholder returns.

"In a separate announcement we have announced the intention to raise up to circa PS40m via a placing.

"The new capital will provide us with additional investment capacity, enabling us to accelerate the implementation of our ongoing strategy, capitalise on our competitive position and drive future growth in earnings and shareholder returns."

Employing more than 350 staff, Newcastle is the third largest office in the company's 39-strong network, managing the wealth of around 7,000 private clients.

Charles May, head of Brewin Dolphin in Newcastle, added: "These are strong and pleasing results.

"Here in Newcastle we have made good progress in our objectives to enhance services to our clients while maximising efficiency in running the business for the long-term.

"We detect a revival in economic confidence and see increasingly positive trading conditions ahead so we're confident that our strategy will ensure further growth in the next period."

We have made good progress delivering strong growth in funds under management


CONFIDENT STRATEGY Charles May, Brewin Dolphin Newcastle
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Title Annotation:Business
Publication:The Journal (Newcastle, England)
Date:May 30, 2013
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