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Brewin Dolphin looks to accelerate growth with £40m share placing

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Brewin Dolphin has unveiled plans to raise up to £40m through a share placing in a bid to ramp up its growth strategy.

In an announcement to the London Stock Exchange last week, the group says it plans to place up to 19,001,738 new ordinary shares to raise about £40m to boost its investment capacity.

Brewin Dolphin says two-thirds of the capital will be used for accelerating the growth strategy, by building its client base in strategic regions and increasing the efficiency of its investment management teams.

The remainder of the cash will be used lift equity capital and associated solvency levels to at least 150 per cent.

The plans come as the wealth manager’s latest interim financial report shows its pre-tax profit for the half-year ending 31 March came in at £6.9m, down 44 per cent from the £12.3m posted for the same period in 2012.

Total managed funds have risen from £25.7bn to £28.1bn, while the discretionary funds business saw assets under management increase from £17.3bn to £20.4bn.

Brewin Dolphin chief executive David Nicol says: “We are two years into the transformation and growth strategy announced in 2011. We have made good progress against our stated objectives, including delivering strong growth in funds under management.”

Informed Choice managing director Martin Bamford says: “Raising money in this way could prove challenging in the current regulatory climate, as restricted advice models are relatively untested.”

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