Aberdeen Leeds Belfast Leicester Birmingham Lincoln Bradford Llandudno Brighton London ANNUAL REPORTANDACCOUNTS2009 Cardiff Lymington Cheltenham Manchester Chester Marlborough Dorchester Newcastle Dumfries Norwich Dundee Nottingham Edinburgh Oxford Elgin Plymouth Exeter Reigate Glasgow Stoke-on-Trent Guernsey Swansea Hereford Taunton Inverness Teesside Jersey Truro Keswick York ANNUAL REPORT Brewin Dolphin Holdings PLC AND ACCOUNTS 12 Smithfield Street London EC1A 9BD 2009 T 0845 213 1000 F 0845 213 1001 W brewin.co.uk E [email protected] Branch Address List Aberdeen Dundee Leicester Oxford Blenheim House 31-32 City Quay Two Colton Square 4 King Edward Street Fountainhall Road Camperdown Street Leicester Oxford, OX1 4HS Aberdeen, AB15 4DT Dundee, DD1 3JA LE1 1QF Telephone: 01865 255750 Telephone: 01224 267900 Telephone: 01382 317200 Telephone: 0116 242 0700 Plymouth Belfast Edinburgh Lincoln Ashleigh Court Waterfront Plaza PO Box No. 8 Olympic House Ashleigh Way 8 Laganbank Road 7 Drumsheugh Gardens Doddington Road Langage Business Park Belfast Edinburgh, EH3 7QH Lincoln Plymouth, PL7 5JX BT1 3LY Telephone: 0131 225 2566 LN6 3SE Telephone: 01752 334650 Telephone: 028 9044 6000 Telephone: 01522 503000 Elgin Reigate Birmingham 26 Hay Street Llandudno Park House 9 Colmore Row Elgin, IV30 1NQ 59 Madoc Street 77 Bell Street Birmingham Telephone: 01343 548344 Llandudno Reigate B3 2BJ North Wales Surrey, RH2 7AN Telephone: 0121 236 7000 Exeter LL30 2TW Telephone: 01737 223722 Vantage Point s%LGIN Telephone: 01492 874391 Woodwater Park s)NVERNESS Bradford Stoke-on-Trent Auburn House Pynes Hill, Exeter London Highpoint !BERDEENs 8 Upper Piccadilly EX2 5FD 12 Smithfield Street Festival Park Bradford Telephone: 01392 440450 London Stoke-on-Trent, ST1 5BG BD1 3NU EC1A 9BD Telephone: 01782 764000 Glasgow $UNDEEs Telephone: 01274 728866 Telephone: 0207 248 4400 48 St. Vincent Street Swansea Glasgow Brighton Lymington Axis 6 G2 5TS Invicta House West Barn Axis Court 'LASGOWs s%DINBURGH Telephone: 0141 221 7733 Trafalgar Place Efford Park Mallard Way Brighton, BN1 4FY Guernsey Milford Road Swansea Vale Telephone: 0845 213 1190 St Peter Port House Lymington, SO41 0JD Swansea SA7 0AJ Saumarez Street, Telephone: 01590 674288 Telephone: 01792 763960 $UMFRIESs s.EWCASTLE Cardiff St Peter Port Manchester Sutherland House Guernsey, GY1 2PT Taunton Castlebridge PO Box 512 2 Mendip House "ELFASTs s+ESWICK Telephone: 01481 736682 s4EESSIDE Cowbridge Road East National House High Street Cardiff, CF11 9BB Hereford 36 St Ann Street Taunton Telephone: 029 2034 0100 36 Bridge Street Manchester, M2 7LE Somerset, TA1 3SX s9ORK Telephone: 0161 839 4222 Telephone: 01823 340320 s,EEDS Hereford, HR4 9DG "RADFORDs Cheltenham Telephone: 01492 364300 s-ANCHESTER The Lypiatts Marlborough Teesside Lansdown Road Inverness Cross Keys House Progress House s,INCOLN s#HESTER Cheltenham Lyle House The Parade Fudan Way ,LANDUDNOs 3TOKE ON 4RENTs GL50 2JA Fairways Business Park Marlborough Teesdale s.OTTINGHAM Telephone: 01242 577677 Inverness Wiltshire, SN8 1NE Stockton-on-Tees ,EICESTERs .ORWICHs IV2 6AA Telephone: 01672 519600 TS17 6EN s"IRMINGHAM Chester Telephone: 01463 225888 Telephone: 01642 608855 Liverpool House Newcastle Jersey s(EREFORD 47 Lower Bridge Street Time Central Truro Chester Kingsgate House 30-34 Gallowgate Unit 14 Indian Queens Trading s/XFORD #HELTENHAMs CH1 1RS 55 The Esplanade Newcastle upon Tyne Estate, Warren Road 3WANSEAs s ,ONDON Telephone: 01244 353900 St Helier NE1 4SR Indian Queens, St Columb #ARDIFFs s-ARLBOROUGH Jersey, JE2 3QB Telephone: 0191 279 7300 Cornwall, TR9 6TL s2EIGATE Dorchester Telephone: 01534 703118 Telephone: 0845 2131500 4AUNTONs Hamilton House Norwich "RIGHTONs Keswick ,YMINGTONs 6 Nantillo Street Jacquard House York 42 St John Street %XETERs s$ORCHESTER Poundbury, Dorchester Old Bank of England Court Apollo House Keswick, Cumbria Dorset, DT1 3WN Queen Street Eboracum Way 0LYMOUTHs CA12 5AF Telephone: 01305 215770 Norwich, NR2 4SX Heworth Green s4RURO Telephone: 01768 781960 Telephone: 01603 767776 York, YO31 7RE 'UERNSEYs Dumfries Leeds Telephone: 01904 520167 43 Buccleuch Street Nottingham s*ERSEY 34 Lisbon Street Dumfries Leeds, LS1 4LX Waterfront House Stocktrade — Execution Only DG1 2AB Telephone: 0113 245 9341 Waterfront Plaza On-Line Broker Telephone: 01387 252361 Nottingham, NG2 2DQ 81 George Street Telephone: 0115 852 5580 Edinburgh EH2 3ES Telephone: 0131 240 0400 Web: www.stocktrade.co.uk The paper used in this report for the cover and review section consists of 50% recycled paper, the paper used for the accounts section is 100% recycled paper. Both mill and printer are FSC certified, our printer is also “Carbon Neutral” accredited. Contents Directors, Secretary and Officers 02 Highlights 03 Executive Chairman’s Statement 04 Business Review 06 Operating and Financial Review 08 Directors and Their Biographies 14 Directors’ Report 16 Corporate Governance 20 Directors’ Remuneration Report 26 Directors’ Responsibilities 32 Independent Auditors’ Report 33 Consolidated Income Statement 34 Consolidated Statement of Recognised Income and Expense 34 Consolidated Balance Sheet 35 Company Balance Sheet 36 Company Statement of Recognised Income and Expense 37 Consolidated Cash Flow Statement 38 Company Cash Flow Statement 39 Notes to the Financial Statements 40 Five Year Record 74 Funds 75 Shareholders at 10 November 2009 76 Branch Address List 77 “BREWIN DOLPHIN HAS BEEN ABLE TO SAIL A RELATIVELY STEADY COURSE THROUGH SOME PRETTY ROUGH SEAS” Directors, Secretary and Officers Directors (including Committee Membership) Executive Directors Jamie Graham Matheson, FSI Executive Chairman Robin Alec Bayford, FCA Finance Director Barry Mark Howard Head of Regulation Christopher David Legge* David William McCorkell Head of Investment Management Sarah Jane Spencer Soar Ian Benjamin Speke Simon Jonathan Henry Still, FInstD* Chief Operating Officer Michael John Ross Williams *(Retired 25 September 2009) Non-Executive Directors Committees William Nicholas Hood, CBE Senior Independent Director and Deputy Chairman (a) (n) (r) Angela Ann Knight, CBE Sir Stephen Mark Jeffrey Lamport, KCVO, DL (a) Simon Edward Callum Miller (a) (n) (r) Francis Edward (Jock) Worsley, OBE, FCA (a) (n) (r) (a) Member of the Audit Committee; (n) Member of the Nomination Committee; (r) Member of the Remuneration Committee. Secretary Angela Wright, FCCA Company Registration Number 2685806 (England and Wales) Registered Office 12 Smithfield Street, London EC1A 9BD T: 0845 213 1000 (UK only) / + 44 20 7248 4400 (International) www.brewin.co.uk www.stocktrade.co.uk Officers and Advisors Registrars Principal Bankers Corporate Finance Advisors Equiniti Limited Bank of Scotland West Hill Corporate Finance Ltd PO Box 4630, Aspect House, Pentland House (2nd Floor) 60 Lombard Street Spencer Road, Lancing, 8 Lochside Avenue London West Sussex, BN99 6DA Edinburgh, EH12 9DJ EC3V 9EA Solicitors Auditors Lawrence Graham LLP Deloitte LLP 4 More London Riverside Hill House London, SE1 2AU 1 Little New Street London, EC4A 3TR Joint Stockbrokers: Joint Stockbrokers: Canaccord Adams Limited Arden Partners Cardinal Place Nicholas House 7th Floor, 80 Victoria Street 3 Laurence Pountney Hill London, SW1E 5JL London, EC4R 0EU 02 Brewin Dolphin Holdings PLC Highlights £212.3m Total income £212.3 million (2008: £206.5 million). Discretionary funds £11.8 billion at 27 September 2009 (2008: £10.2 billion), an increase of 15.7% which compares to a fall of 0.1% in the FTSE 100 £11.8bn Share Index. Profit excluding amortisation of intangible asset - client relationships and £32.1m redundancy costs and before tax £32.1 million (2008: £36.8 million). £21.9m Profit before tax £21.9 million (2008: £32.0 million). Earnings per share: – Basic earnings per share 7.4p (2008: 10.7p). 7.4p – Diluted earnings per share 7.2p (2008: 10.3p). Earnings per share excluding amortisation of intangible asset - client relationships and redundancy costs: 10.8p – Basic earnings per share 10.8p (2008: 12.4p). – Diluted earnings per share 10.6p (2008: 11.9p). The total dividend for the period is 7.1p per ordinary share (2008: 7.1p). 7.1p Proposed final dividend 3.55p per share (2008: 3.55p) Annual Report and Accounts 2009 03 Executive Chairman’s Statement In a year which has seen financial markets across the globe go Investment Banking through perhaps the most difficult times in living memory, I am Despite operating in a very tough trading environment, our pleased to report that Brewin Dolphin has been able to sail a Investment Banking division importantly remained profitable, relatively steady course through some pretty rough seas. I believe reflecting the flexibility of its business model. this gives shareholders grounds for continued confidence in the fundamental strengths and resilience of the business. A year ago the outlook for our Investment Banking division was somewhat uncertain but we remained confident that the short term Total income for the year to 27 September 2009 was £212.3 impact would be containable. Having reported an operating loss of million, 2.8% up on last year, against a fall in the FTSE 100 average £0.8 million at the interim stage (excluding redundancy costs), the level across each financial year of 21.6%. Pre-tax profits excluding division has been able to end the year in the black. Trading activity redundancy costs and amortisation of the intangible asset – client and the level of enquiries that are being received suggest that the relationships were £32.1 million, 12.7% down on last