Acquisitions and organic growth led to a large increase in income from Financial Planning, the company reported today in interim figures.
Half year Financial Planning income rose year by 30.2% from £12.6m to £16.4m and the firm is continuing to recruit experienced Financial Planning professionals.
The company said in its interim profits today that the rise in Financial Planning income was mainly due to growth in the London West End Office ‘1762 from Brewin Dolphin’ alongside Financial Planning acquisitions made in the second half of 2019. Of the £3.8m increase, £1.9m was from recent acquisitions.
A year ago Brewin acquired Surrey-based Financial Planning firm Aylwin. Brewin said the deal was designed to boost the group's Financial Planning activities in Southern England.
The company said overall it had produced a ‘resilient’ set of results with like for like income up 2.5% but statutory pre-tax profits slipping 5.1% to £28.2m and significant uncertainty about the second half.
The company is also planning to cut £6m to £8m in costs this year to improve efficiency.
Total funds were down year on year from £45bn to £41.4bn. Excluding funds from acquisitions of £2.7bn, total funds decreased by 14%.
Total income for the period increased by 8.3% to £175.8m. Excluding income from acquisitions of £9.3m, income increased by 2.6%.
Chief executive David Nicol said: "In the first half of 2020, we delivered a resilient set of results, notwithstanding the negative impact of Covid-19 on global markets towards the end of the second quarter.
“We saw a greater level of direct inflows in the first half, with strong demand for integrated wealth management service. We have a strong balance sheet and good cash generation although we need to be mindful of the high level of uncertainty for the remainder of the financial year. We continue to monitor the impacts on the business and maintain strong cost discipline.”
He said 99% of staff were now working remotely but the firm managed to increase engagement with clients and there was “increased demand for financial advice, which we were able to offer remotely.”
The company continued to develop its WealthPilot service and believes it will work well with clients engaging remotely.