preliminary results Year to 27 th September 2009 contents Overview - - PowerPoint PPT Presentation

preliminary results

Year to 27th 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

• verview

· 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

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%

investment management*

* Excluding redundancy costs and amortisation of client relationships

7

Recurring Income (54%) (2008: 55%) Non-recurring Income (46%) (2008: 45%)

split of income

investment management

8

investment management

fum

At 27th Sept 09 At 28th 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

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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%

investment banking

eXcluding redundancy costs

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

SOME COMPANIES USE COMPUTERS TO MAKE BUYING AND SELLING STOCK DECISIONS. CLEVER. BUT YOU TRY GETTING A COMPUTER TO MEET YOU IN THE CAFE ON PLATFORM 3 AT BRISTOL TEMPLE MEADS ON A WET FRIDAY AFTERNOON.

At Brewin Dolphin, we don’t let computers make the decisions that can affect your life and your livelihood, only real people, individuals thinking about their individual client’s circumstances and

• portfolio. That’s why we take time to talk with, meet

with, and often just chat about nothing with our clients, so we can better respond to their individual wants, needs, and dare we say it, idiosyncrasies. The reference in our headline is true, we do have a client who always wants to meet in that particular cafe at that particular railway station. Unusual 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.

enhancing the brand

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

• wned, 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

• ther companies do them, and

you’ll see that it all stems from the simple philosophy that guides everything we do: that the fjrst 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.

LISTENING TO WHAT OUR CLIENTS WANT HELPS US TAILOR-MAKE EACH PORTFOLIO TO SUIT THE INDIVIDUAL. IN OTHER WORDS, WE LET YOU SPEAK BEFORE YOU’RE BESPOKEN TO.

• years. They’ve turned out

for local cricket teams, fed fish, even looked after pet dogs. Unusual, but with such a willingness to go beyond the call of duty it’s no surprise that clients tend to stay with us a long time. But neither is it unusual for relationships to last beyond a lifetime. Some of our investment managers have helped several generations of the same family. So, as well as all the other things we do, you could say we look after people’s kids too. Perfect testimony to the simple philosophy that guides everything we do: that the first thing we earn is your trust.

SOME OF OUR RELATIONSHIPS GO BACK FOUR GENERATIONS. THAT’S NOT JUST GREAT. THAT’S GREAT-GREAT.

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18

2008/09 Intermediaries sales team £235m New Charity team £200m Tax Wrappers and SIPPs £525m

new business development

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

· 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

• utlook

22

appendiX

analysis of funds

Discretionary Advisory Execution-only

· Discretionary £11.8bn · Advisory £8.7bn · Execution-only £4.1bn Total funds £24.6bn · Custody £22.5bn · Certifjcated £2.1bn Total funds £24.6bn

23

• ther 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

24

staff

· Total Staff at year end ............................... 1731 · FSA Approved Staff ........................................ 643 · Staff shareholders own ................................... 24.5%

25

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

26

preliminary results

Year to 27th September 2009