Interim Results For the half year to 31 March 2012 Themes Good - - PowerPoint PPT Presentation

▶
interim results
SMART_READER_LITE
LIVE PREVIEW

Interim Results For the half year to 31 March 2012 Themes Good - - PowerPoint PPT Presentation

Nov 24, 2023 208 likes •556 views

Interim Results For the half year to 31 March 2012 Themes Good performance in challenging market Growth in discretionary funds under management Growth in recurring income Strategic change implementation on time and on

slide-1
SLIDE 1

Interim Results

For the half year to 31 March 2012

slide-2
SLIDE 2

1

Themes

  • Good performance in challenging market
  • Growth in discretionary funds under management
  • Growth in recurring income
  • Strategic change – implementation on time and on budget
  • 250th Anniversary
slide-3
SLIDE 3

2

Results – Highlights

  • 3.55p

3.55p Dividend 3% 11,898 12,307 Profit before tax

  • 20%

6.9p 5.5p Diluted earnings per share*

  • 3.5p

3.5p Diluted earnings per share

  • 17%

22,759 18,901 Profit before tax* 0% 131,465 131,378 Total income 9% 7,849 8,566 Other operating income

  • 1%

123,616 122,812 Revenue £’000 £’000 % change March 2011 March 2012

* pre redundancy cost, additional FSCS Levy and amortisation of client relationships

slide-4
SLIDE 4

3

Income Statement

* pre redundancy cost, additional FSCS Levy and amortisation of client relationships

  • 85%

(577) (87) Redundancy cost 3% 11,898 12,307 Profit before tax

  • 91%

(6,058) (553) Additional FSCS Levy 41% (4,226) (5,954) Amortisation of client relationships

  • 17%

22,759 18,901 Profit before tax* 156 (17) Net finance income and other gains and losses

  • 16%

22,603 18,918 Operating Profit*

  • 8%

(17,887) (16,463) Profit share

  • 13%

40,490 35,381 Profit before profit share* 3% (47,429) (48,947) Other operating costs 8% (43,546) (47,050) Salaries 0% 131,465 131,378 Total Income £’000 £’000 % Change March 2011 March 2012

slide-5
SLIDE 5

4

49.3 Capital Requirement 42.3 Firm’s cash 19.8 Surplus 69.1 Capital Resources £’m March 2012

Capital Adequacy

slide-6
SLIDE 6

5

Difficult Background

  • Market down on average

– FTSE 5.6% – APCIMS 1.9%

  • Volumes down – over all by 17%

– 1st quarter - 25% – 2nd quarter - 11%

slide-7
SLIDE 7

6

Fixed salary costs up

  • Front office – up £942K (3.4%)
  • 2% salary increases + 1.4% new staff
  • Business support and overheads up £2,562K (16%)
  • 4% salary increases + 12% new staff
  • Regulation and Risk - new departments and new staff
slide-8
SLIDE 8

7

Movement in Profitability 2011 to 2012

slide-9
SLIDE 9
slide-10
SLIDE 10

9

0% £8.4bn £8.4bn Advisory funds under management Funds 12.5% 5,128 5,768 FTSE 100 10.9% £15.6bn £17.3bn Discretionary funds under management £24bn 2,735 Sept 2011 % change March 2012 Indices 7.1% £25.7bn Total managed funds 9.7% 3,002 FTSE APCIMS Private Investor Series Balanced Portfolio

Funds Under Management

slide-11
SLIDE 11

10

£ billion £ billion £ billion 7.1% 10.9% 0% % change in funds since 30 Sept 2011 1.8 1.2 0.6 Market movement

  • 0.2

(0.2) Transfers (0.9) (0.4) (0.5) Outflows 24.0 15.6 8.4 Value of funds at 30 September 2011 17.3 0.7 Discretionary funds Total Managed funds Advisory funds 25.7 8.4 Value of funds at 31 March 2012 0.8 0.1 Inflows

Funds Under Management Flow

slide-12
SLIDE 12

11

Re-pricing – Attrition to date

Notes: Attrition data updated as of 11/05/2012. Attrition at risk includes accounts at risk and confirmed departures.

slide-13
SLIDE 13

12

Return on Funds Under Management

0.92% 0.94% Average return on advisory funds 1.20% 1.12% Average return on discretionary funds 2011 2012

slide-14
SLIDE 14

13

Funds Under Management trend

slide-15
SLIDE 15

14

Split of Total Income

slide-16
SLIDE 16

15

Split of Income by service

slide-17
SLIDE 17
slide-18
SLIDE 18

17

Systems changes

  • Total change – not tweaks
  • Migration begins at the end of 2012
  • Integration of IM and FP proposition
  • On time and on budget
  • Cost savings in 2014
slide-19
SLIDE 19

18

New client proposition

  • Client experience – materially enhanced
  • National proposition – but still bespoke

– Consistent and quality service – National rate card – Re pricing – over 1/3 complete – Trail largely phased out by end 2012 – Less time spent on administration

slide-20
SLIDE 20

19

Developments

  • New Ipswich office
  • Consolidation of small offices
  • Good book of potential recruits
  • Pensions +£500m - now over £4bn
  • ISAs - £3.8bn (£3.4bn March 2011)
slide-21
SLIDE 21
slide-22
SLIDE 22

21

Marketing Developments

  • Benefits of single brand and ongoing activity
  • National advertising campaign
  • Awareness of Brewin Dolphin now over 30%
  • from 20% in 2008
  • those considering us “better than most” has doubled
  • Events all around the country to mark 250th Anniversary
  • Commodores Cup, the Irish Open, the Chelsea Flower Show

and many others…

slide-23
SLIDE 23
slide-24
SLIDE 24
slide-25
SLIDE 25

24

Outlook

  • Growing demand for our services
  • Competitive proposition post RDR
  • Systems and services efficiency improved
  • Scale and approach see us well positioned
  • Plans for margin enhancement of 20%+ on track
slide-26
SLIDE 26
slide-27
SLIDE 27

26

Analysis of Funds

£31.0bn Total funds £31.0bn Total funds £1.7bn Certificated £29.3bn Custody £5.3bn Execution-only £8.4bn Advisory £17.3bn Discretionary

slide-28
SLIDE 28

27

Regional Network

slide-29
SLIDE 29

28

Asset Allocation

slide-30
SLIDE 30

29

Assets under management

£3.8bn ISAs £1.9bn Charitable funds £4.1bn Pension funds March 2012 £3.4bn ISAs £1.7bn Charitable funds £3.6bn Pension funds September 2011

slide-31
SLIDE 31

30

Staff

  • Total Staff – 1931
  • FSA approved staff* – 602
  • Staff shareholders own 35%

* CF30’s - 585

slide-32
SLIDE 32

31

Approach to Investment

With the help of our:

  • Asset Allocation Committee
  • Strong research departments
  • Collective funds analysis service
  • Model portfolios management options
  • Strong compliance
  • Solution for smaller portfolios and MFS for Intermediaries

What makes us special is that the person who talks to the client makes the investment decisions.

slide-33
SLIDE 33

32

Remuneration

  • Basic salary
  • Profit share
  • Third paid in shares over £50,000 (to be held for 3 yrs)
  • All personnel believe they can make a difference