The broker and wealth manager said it wanted to raise the money to acquire “client teams in strategic regions”, particularly the South East, and also to fund a group-wide efficiency drive to boost future growth and profit margins.
The share placing was launched this morning and the amount the group hoped to raise has now been met.
The firm said it expected to increase its profit margin to more than 25 per cent by 2016, and said the increased margin and an expected increase in discretionary funds under management would improve profitability and cashflow and it promised its 2014 dividend would reflect that improvement.
The move comes after a management overhaul in March this year saw several board members step down and a strategic review of the firm’s growth plans put in place, which has led to this capital raising.
In its results for the half year to March 2013, Brewin Dolphin saw pre-tax profit nearly halve from the same time last year, from £12.3m to £6.9m due to a number of one-off costs, such as redundancy costs and an additional FSCS levy.
The firm’s total funds under management rose by 8.5 per cent to £28.1bn from £25.9bn at the end of September 2012, driven by a 12.1 per cent growth in discretionary assets to £20.4bn.
