Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a655000

Brewin Dolphin loses 5% of income as RDR bites

by David Campbell on Jan 31, 2013 at 07:26

Brewin Dolphin loses 5% of income as RDR bites

Brewin Dolphin lost 5% of its income over the three months to 30 January as trail commission was removed and admitted that the introduction of its new fee structure was ‘slower than anticipated’.

Total income for the period, which coincided with the launch of the retail distribution review, was 13.7% up on the year before however, at £67.8 million versus £59.7 million in 2011/12.

At 9am, the company was trading down 2.42% at 209p, versus a broadly flat market.In a note published in November 2012 broker Peel Hunt said that Brewin Dolphin stood to lose more than its peers from the removal of trail payments.

The company said it was experiencing a ‘period of consolidation’ after several years of strong growth, and alongside internal investment, said it was exploring tighter cost controls.

Overall funds were ‘stable’ at £26 billion, although the business saw outflows from its advisory division, ‘a result of ongoing service reviews as part of the move to new pricing’.

‘The trend towards an increasing proportion of recurring fee income is continuing, albeit at a marginally slower pace than during 2012,’ the company said in a statement.

‘Repricing and moving to new national rate cards remains on track for completion by the end of this financial year although progress was slower than anticipated in the first quarter.

‘The recovery in the commission levels from the sharp falls experienced in the first quarter of the last financial year has stabilised and first quarter total commission income was in line with the average for the final two quarters of the previous financial year.’

New discretionary funds over the quarter remained consistent, but were balanced against the loss of a team of managers.

‘The group is in a period of consolidation after the expansion-led growth of recent years. In particular, the priority remains continued improvement in the quality of service to clients, increasing shareholder returns through improved operational efficiency.

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment


With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Look up the shares

  • Brewin Dolphin Holdings PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet