Brewin Dolphin intends to raise up to GBP40 million via a placing of up to 19,001,738 new ordinary shares in the company, representing 7.5% of Brewin Dolphin’s existing issued share capital, with both existing and new institutional investors.
The new capital will provide Brewin Dolphin with additional investment capacity, enabling it to accelerate the implementation of its strategy, capitalise on its competitive position and drive future growth in earnings and shareholder returns.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Brewin Dolphin has already received strong indications of support for the placing and management’s strategy from existing large shareholders.
On 21 March 2013, Brewin Dolphin announced a series of board changes to establish a new management structure. Over the past ten weeks, the management team have undertaken an appraisal of the strategy, positioning and prospects for the group, as well as assessing the progress and implementation of the strategic review launched in 2011.
According to Brewin Dolphin, its strategic review initiatives are progressing well and it is anticipated that the 20%+ operating margin target will be delivered in financial year 2015. Further investment can accelerate the strategy and should deliver incremental margin expansion with a new target of achieving a below 25% operating margin run rate in 2016 and beyond.
Margin expansion coupled with growth in discretionary funds under management will significantly improve cashflow and profitability prospects thus enabling a meaningful growth in dividends to shareholders with a dividend policy reflecting this for 2014 and thereafter.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataApproximately two thirds of the placing proceeds, in conjunction with a proportion of future retained profits, are expected to be used to fund additional capital investment over the coming two and a half years.
