redundancies and fscs levy hit

Brewin Dolphin saw profits tumble 17.1% in the six months to the end of March as redundancy costs, the additional FSCS levy and amortisation of client relationships started to bite.

redundancies and fscs levy hit


Adjusted pre-tax profit was £18.9m for the period, down from £22.8m a year earlier.

Jamie Matheson, executive chairman of the firm, said in the year since it had announced the outcome of the major strategic review of operations and activities to reduce overheads, upgrade systems and enhance services to clients, he was "pleased to report much progress had been made".

He said implementation of the strategic review remained on plan and on budget and will position the firm for long term growth.

Since 30 September total managed funds have increased 7.1% from £24bn to £25.7bn, as at 31 March. This also represented a £700m growth of funds over the past year.

Within that total, discretionary funds rose 10.9% to £17.3bn at the period end, from £15.6bn six months earlier and £15.5bn 12 months earlier.

Although revenue was still impacted by the FSCS levy, Brewin Dolphin said it had benefited significantly from the reduction in the size of it.

In addition, the move to a more fee-based model has had a short term impact on revenue, but should improve the quality of the business across both advisory and discretionary services for the future, Brewin Dolphin said.

Matheson concluded that he does not see the "regulatory load diminishing" and so the board of the company is ensuring steps have been taken to go some way to mitigate this financial burden as part of its strategic review.



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