Delays have occurred to moving the managed advisory business onto new standard national pricing structures as a result of ensuring client communication was “fair and appropriate,” bosses reveal.
As reported at September 2013, about 40 per cent of Brewin Dolphin’s managed advisory business was still due to move onto new standard national pricing structures, with the intention that this would be completed by the end of 2014.
According to bosses, the completion of this move will bring the yield received for this service to a more sustainable level of about 75 basis points from the 56bps earned in 2013.
While further progress on this price switch has been achieved in the period, taking the yield up to 61bps for the six months ended 30 March 2014, bosses revealed some delays have occurred as a result of ensuring that client communication was fair and appropriate.
However they insisted the work was still planned to be completed by the end of 2014.
The results, reported today (28 May), showed growth in discretionary funds to £22.7bn at 30 March 2014, up from £20.4bn a year ago.
The board declared an interim dividend of 3.65p per share.
David Nicol, chief executive of Brewin Dolphin, said “The group has made good financial and operational progress over the first half of 2014.
“The process of streamlining the business is on track and this is reflected in the significant progress made towards the adjusted profit before tax margin target of 25 per cent.
“It is encouraging to see the rationalisation of the business model begin to bear fruit as organic growth is achieved.”
