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Funds hit £25bn at Brewin Dolphin

LONDON (ShareCast) - Profits were roughly in line with expectations at the interim stage for stockbroker and investment manager Brewin Dolphin (Other OTC: BDNHF.PK - news) , while funds under management (FUM) hit the £25bn mark. The value of discretionary FUM at 27 March stood at £15.5m, up 10% on the £14.0bn under management at the end of September 2010, while advisory FUM grew by 3.3% to £9.5bn from £9.2bn. In total, FUM grew by 7.8% to £25.0bn from £23.2bn six months earlier. Stockbroker Peel Hunt had forecast a rise to £25.2bn. "It is pleasing to note the ever increasing in-flow of funds under our management. While it would be hazardous to make assumptions about stability on a global scale, I am confident of your group's abilities to continue to grow and prosper," said Jamie Matheson, Brewin Dolphin's executive chairman. Total (Euronext: FP.NX - news) income during the period rose by 12.5% to £136.0m from £120.9m and total income from the core Investment Management activity by just over 14% to £131.5m. Profits before tax, redundancy costs, an additional Financial Services Compensation Scheme (FSCS) levy and amortisation of client relationships rose by 9.6% to £22.9m from a year earlier. Peel Hunt's forecast was for adjusted profits of £23.0m. Reported profit before tax dipped to £12.0m from £15.2m at the interim stage last year. The FSCS levy resulted in fully diluted earnings per share (EPS) emerging some 21.7% lower than last year at 3.6p per share (2010: 4.6p). Adjusted fully diluted EPS rose 9.4% to 7.0p from 6.4p the year before. The interim dividend has been maintained at 3.55p. "While the future for regulation remains an issue of significant concern for our industry and private investors, we view the government's restructuring of the regulatory framework as an opportunity not a threat and we are seriously engaged in their consultations," said Matheson. --- jh