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Brewins claims RDR boost as profits jump 37%
by David Campbell on Dec 05, 2012 at 08:34
Brewin Dolphin has reported a jump in assets under management from £24 billion to £25.9 billion as it said the retail distribution review (RDR) would deliver 'significant competitive advantages'.
In preliminary results for the 12 months to end of September the company reported profit before tax of £29.9 million, 36.5% up on the £21.9 million reported in the previous year. Recurring income has increased from 61% of revenues to 68% over the period.
Discretionary funds under management rose 16.7% from £15.6 billion to £18.2 billion, while advisory assets fell 8.3% over the period.
Shares in the company jumped an immediate 1.86% at the market open, to 185.9p. Royal Bank of Canada last month upped its price target against the company from 170p to 210p.
‘To make progress in this environment continues to reassure us that the services we provide remain relevant and valuable to our clients,’ said executive chair Jamie Matheson (pictured).
‘We have made good progress in implementing our strategic review and the FSA's RDR, which we believe gives significant competitive advantages to larger businesses such as ours.
‘We have led the industry by being more transparent about charges. We believe strongly that transparency and competitive single pricing are important for the confidence of all private investors.’
The company has proposed a final dividend of 3.6p bringing the total for the year to 7.15p, up from 7.1p previously.
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