Annual Report and Accounts 2013 - brewinmedia.co.uk

Brewin Dolphin Holdings PLC, 12 Smithfield Street, London EC1A 9BD

T 020 7246 1000 F 020 3201 3001 W brewin.co.uk E [email protected]

Annual R

eport and Accounts 2013

Annual Report and Accounts 2013

Brewin Dolphin provides a range of investment management, financial advice and execution only services in the UK and Eire.

“Our priorities are clear. They are to reinforce our high standard of service to clients and ensure an improved return to shareholders. Discretionary Investment Management is currently the core of our business model and our mission is to provide a compelling and consistent offering, relevant to all our clients. Over the past decade we have evolved from a stockbroker into a private client investment manager. Our evolution must continue as we strive to become the leading provider of personal Discretionary Wealth Management in the UK.” David Nicol, Chief Executive

Investment proposition• Strongclientrelationshipswithalong-termtrackrecordofpersonalisedservice

• Growthmarketwithgoodlong-termprospects

• Newmanagementteamwithcleargoalsandastrategytoachievethem

• Ourstrategywillgeneratevalueforallstakeholders

We are already creating value in 2013• Totalincomegrewby9%to£283.7m

• Adjustedprofitbeforetaxgrewby22%to£52.3m

• Adjustedprofitmarginincreasedfrom16.5%to18.5%

• Discretionaryfundsundermanagement(FUM)grewby17%to£21.3bn

• Adjustedearningspershare(EPS)grewby19.2%to14.9p(2012:12.5p)

• Fullyeardividendincreasedby20%to8.6p

• TotalShareholderReturnwas63%

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Section 1FinancialHighlights 02BusinessHighlights 03Chairman’s Statement 04Overview of the Business and Strategy 06StrategicReport 08

A. Business Description 09B. Market Environment 10C. ObjectivesandStrategy 11D. ProgressReport 12E. ResultsfortheYear 18F. PrincipalRisksandUncertainties 27G. FutureDevelopments 31H. CorporateResponsibility 31

Section 2Directors and their Biographies 32Directors’ Report 34Corporate Responsibility 36CorporateGovernance 39Risk Committee Report 44Audit Committee Report 46Directors’ Remuneration Report 49Directors’ Responsibilities 66

Section 3Independent Auditor’s Report 67Consolidated Income Statement 70Consolidated Statement of Comprehensive Income 71Consolidated Balance Sheet 72Consolidated Statement of Changes in Equity 73Company Balance Sheet 74CompanyStatementofChangesinEquity 75ConsolidatedCashFlowStatement 76CompanyCashFlowStatement 77NotestotheFinancialStatements 78

Section 4FiveYearRecord 120Shareholdersat11November2013 121Appendix–CalculationofKPIs 122Directors, Secretary and Officers 123Branch Address List 124

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02 Brewin Dolphin Holdings PLC Annual Report and Accounts 2013

Financial Highlights

At 29 September 2013 At 30 September 20121TheSeptember2012incomefigurehasbeenadjustedtoexcludesharedrevenuewhichpriortotheRetailDistributionReview(“RDR”)wasrecordedasincomeforBrewinDolphinwithacorrespondingoperatingexpenseapportioningtheincometoexternalparties.

2Thesefigureshavebeenadjustedtoexcluderedundancycosts,additionalFSCSlevy,onerouscontractsprovision,amortisationofclientrelationshipsanddisposalofavailable–for–saleinvestments.

The Board is implementing a new dividend policy from 2014 based on a target dividend payout ratio of between 60-80%ofadjustedearningspershare.

Profit before tax £28.6m2013

2012 £29.9m

Earnings per share

Basic earnings per share

2013

2012 9.1p

Final dividend

5.05p 40% increaseFull year dividend

8.6p 20% increase

Diluted earnings per share

2013

2012 8.6p

Adjusted2 earnings per share

Basic earnings per share

2013

2012

19.7% increase13.2p

Diluted earnings per share

2013

2012

19.2% increase12.5p

Adjusted2 profit before tax £52.3m2013

2012

22.0% increase£42.9m

Total adjusted income £283.7m2013

20121


Total income £283.7m2013

2012


4.4% decrease

8.0p8.5p

14.9p15.8p

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At 29 September 2013 At 30 September 2012

Business Highlights

Strategy We are now two and a half years into the transformation and growth strategy announced in 2011. This strategy has twomainpriorities:continuedstronggrowthandincreasedefficiency. These priorities are underpinned by a series of initiatives to transform the business, ensuring it is best placed to enhance client service, meet regulatory demands and generate shareholder returns.

To improve shareholder returns and value, we have added twofurtherstrategicpriorities:

1) ensuringwemaintainsufficientcapitaltodeliverourstrategy; and

2) aligningdividendgrowthwithunderlyingearnings.

This year we announced a new operating margin target of 25%,whichweaimtoachievebytheendofthe financial year 2016.

Capital Wesuccessfullyraised£38.6mthroughanequityplacing in May 2013 to improve our capital strength and investment capacity. This will allow us to accelerate the strategy, capitalise on our competitive position and drive future growth in earnings and shareholder returns.

Management Team The Board of the Company has been restructured with the appointmentofthreenewExecutiveDirectors,DavidNicol–ChiefExecutive,AndrewWestenberger–FinanceDirectorandStephenFord–HeadofInvestmentManagementwhohavejoinedfellowExecutiveDirector,MichaelWilliams.Thenew management team has been in place since March. They areintentonexpandingthebusinesstotakeadvantageofthe opportunities they perceive in the much changed market environment today. The management team has thoroughly reviewedandrefocusedthe2011StrategicPlan.

Adjusted profit margin2 18.5%2013

2012 16.5%

Total managed funds £28.2bn2013

2012 £25.9bn

Discretionary funds £21.3bn2013

2012 £18.2bn


Chairman’s Statement

Dear Shareholder,

2013 has been a year of significant change for Brewin Dolphin. This has encompassed a comprehensive review ofeveryaspectofthewayinwhichtheGroupoperatesand has resulted in a series of actions which have materially strengthened its position as one of the UK’s leading independentwealthmanagerswithinexcessof100,000clientsand£28billionundermanagement.

Board changesJamie Matheson, my predecessor, retired at the end of March and I would once more like to pay tribute to his long andsuccessfultenure.HenryAlgeo,BenSpeke,BarryHowardandSarahSoarstooddownatthesametime.David McCorkell retired in October 2012 and Robin Bayford in December 2012. In October 2013 Angela Wright retired as Company Secretary and continues to work for Brewin DolphinasGroupChiefAccountant.Ishouldliketorecordthe Board’s appreciation of their substantial contribution to theGroupovermanyyears.

FollowingthesechangestheBoardhasbeenreshapedandthis process continues. In accordance with the UK Corporate GovernanceCode,therolesofChairmanandCEOhavebeensplit.IwasappointedNon-ExecutiveChairman,DavidNicolbecameChiefExecutive,StephenFordwasappointedHeadofInvestmentManagementandtogetherwithAndrewWestenberger,thenewFinanceDirector,andMichaelWilliams,theyarethefourkeyexecutivesinthe firm. These appointments have been accompanied by other management changes designed to create greater accountability and clearer lines of responsibility.1 BiographyofIanDewarwillbeincludedinthenoticeofAGM.

TheUKCorporateGovernanceCodealsorequiresthattheboards of listed businesses should have at least an equal numberofindependentNon-ExecutiveDirectorsexcludingthe Chairman.

TherearefourNon-ExecutiveDirectorsontheBoard,excludingme.JockWorsleyretiresfromtheBoardattheAGMinFebruary2014after10yearsofservice.Hehas been Chairman of the Audit Committee and was appointed Senior Independent Director at the end of March 2013. Hiswisecounselwillbegreatlymissed.IanDewar,who wasappointedtotheBoardonthe15November2013, will succeed Jock as Chairman of the Audit Committee. Angela Knight will become Senior Independent Director. WewillseektorecruitonemoreNon-ExecutiveDirectorduring the current year. Brewin Dolphin will then be fully compliantwiththeUKCorporateGovernanceCode.

Biographies of each director are contained on pages 32 and 33.1

Running the businessTheBoardsofBrewinDolphinHoldingsPLCandBrewinDolphin Limited, the principal operating company, are now identical, although their respective roles are slightly different. The smaller board format serves the business effectively and allows for more focused discussion.

The business is run on a day to day basis by the Chief ExecutivesupportedbyanExecutiveCommittee.Thereare four Board committees, Audit, Risk, Remuneration and Nomination.EachoftheseischairedbyanIndependentNon-ExecutiveDirector.

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FocusOur focus remains unchanged. It is to promote continued strong growth and increased efficiency, thereby ensuring improved returns to shareholders. These are the pillars upon which decisions will be made.

The UK wealth management sector has been the focus of much attention over the past year. The impact of the RetailDistributionReview(‘RDR’)whichcameintoeffectinJanuary2013hascausedthesectortore-examinethewaybusiness has been carried out historically and the result will undoubtedlybeinthelong-terminterestsofbothclientsandmanagers.Thechangeinregulator,fromtheFinancialServices Authority into two successor organisations, will likewise result in changes in how the sector operates. These are designed to make the industry more transparent and accountable to its clients and Brewin Dolphin aims to take a leading role in continuing the development of industry best practice.

EnhancingtheprofitabilityoftheGroupremainsakeyobjectiveoftheBoard.Anexerciseexaminingcostsandefficiencies was undertaken in the second half of the year and savings were identified and made.

RemunerationThe Remuneration Committee has recently undertaken a review of the current remuneration packages of the Company’sExecutiveDirectors.Followingthisreview,theCommittee proposes to rebalance the packages of the ChiefExecutive,theFinanceDirectorandtheHeadofInvestment Management towards more emphasis on longer termdeliveryoftheCompany’sstrategicfinancialobjectives.

The plan has been structured to take into account best practice guidelines from institutional shareholders and shareholder representative bodies.

DividendTheBoardisproposingafinaldividendof5.05ppershare, tobepaidon28March2014toshareholdersontheregisteron28February2014.Thiswillbringthetotaldividendfor theperiodto8.6ppershare(2012:7.15p).

ShareholdersBrewin Dolphin has some 1,000 shareholders, representing a widerangeofinstitutionsandindividuals.Approximately18%of the equity is held by present employees of the business.

Shareholders’ support enabled the company to raise £38.6minMaybywayofaplacingatasmalldiscounttothe market price. Your Board welcomes interaction with shareholders and is committed to maintaining an open and regular dialogue.

Thisyear’sAGMwillbeheldat11.30amon17February2014attheLincolnCentre,18Lincoln’sInnFields,LondonWC2A 3ED. I very much hope you will be able to attend.

Simon Miller 3 December 2013

Our focus remains unchanged. It is to promote continued strong growth and increased efficiency, thereby ensuring improved returns to shareholders. These are the pillars upon which decisions will be made.


Our businessBrewin Dolphin provides a range of investment management, financialadviceandexecutiononlyservicesprimarilytoindividuals and families throughout the UK and Eire. Our aim is to help clients make the most from their money.

• Weearnthetrustofclientsandtherebycreateloyalandlong term client relationships.

• Weofferapersonalapproachtoclientservice,combinedwiththeexpertiseofourprofessionallyqualifiedstaff.

• Wechargeclientsforservicesbasedonthevalueofassets we manage and/or the investment business we transact, on their behalf.

• Wehavealonghistoryandhavegrownrapidlythroughacquisitions.

• Wehave35officesintheUKandEire.

• Wehavemorethan100,000clientsand1,877employees.

• Wemanagemorethan£28billionofinvestmentsonbehalf of clients.

Our marketWeoperateinagrowthmarketwithgoodlong-termprospects from increasing demand for our service.

• Ourindustryfacesbigchallenges:

–Increasingregulatoryfocus

–Changingclientbehaviours

–Harnessingnewtechnology

–Industryconsolidation

• Competitionisintensifying.

Our industry offers many opportunitiesThe market environment has changed considerably in recent years, presenting challenges and opportunities. Increased transparency combined with growth has encouraged both new entrants and new business models to challenge the status quo in the industry.

Our Strategy – Overview

Overview of the Business and Strategy

To be the leading

provider of personal discretionary wealth

management in the UK

Vision

PrimaryGoal

Corporate Objectives

Strategic Priorities

Generateshareholdervalueby growing revenue and delivering a high quality service to our clients efficiently

Build a business to be proud of based on values of client service, teamwork and integrity

Beanexcellent employer

Manage responsibly forlong-term

Growourdividendinline with earnings

Improve our efficiency

Maintain sufficient capitaltomaximiseopportunities and

cover risks

Growthenumberofclients we serve and therefore the revenue

we generate

Initiatives Improve market competitiveness and drive organic growth Achieveoperationalexcellencetoimprovequalityandlowercosts

Enhance the service model for our clients

Invest in technology to improve quality of service

Invest in our people

Develop plans to attract new clients

Focusourbusinessaroundourprimaryservices

Sustainable and transparent pricing

Increased cost discipline

Simplify and streamline our operating model

Harnessourtechnologytolowercosts

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Strategy and business model

–Correlationofearningstofinancialmarkets

–Culturalinertia,poorprojectmanagementpreventing change

–Overrelianceonkeyemployeesandclientrelationships

–Possibleweakduediligence/executionofpastacquisitions

Operational

–Unsuitableadviceorinvestmentservice

–Breachofregulatoryrules/reportingrequirements

–Failureofprocesses,technologyorexternalservices

–Compensationclaims/industrylevies

ProgressWe have already made good progress.

1ControlledFunction30(CF30)isanFCAapprovedcustomerfunctionofdealingin,advisingonormanaginginvestmentsonbehalfofclients.

Strategic Priority KPI Progress this year Target

Revenue Growth DiscretionaryFUMinflows 6% 5%

Discretionary service yield 91 96 bps 95bps

Managed Advisory service yield 46 56bps 75bps

Revenue growth 9% n/a

Improved Efficiency AdjustedPBTmargin 16.5 18.5% 25%+

DiscretionaryincomeperCF301 £283k £370k £490k

%ofmanagedFUMinDiscretionaryservice 70 76% 80%

DiscretionaryFUMperCF30 £33m £41m £50m

SupportstafftoCF30ratio 2.5to1 2.0 to 1

Average client portfolio £420k £500k

Capital Sufficiency Solvency ratio 226% Min150%

Dividend Growth Dividend pay out 57 58% 60-80%

AdjustedEPSgrowth 19.2% n/a

Dividend growth 20% n/a

Key Risks• Somekeyrisksanduncertaintiescouldhoweverthreatenfurtherprogress.

• Weareseekingtomanagerisksbyrefocusingstrategicprioritiestoreducecertainkeyrisks.

• Thebusinessisnowwellcapitalisedtobothdeliverstrategyandcoverrisks.


A. Business Description 09B. Market Environment 10C.ObjectivesandStrategy 11D.ProgressReport 12E.ResultsfortheYear 18F. PrincipalRisksandUncertainties 27G.FutureDevelopments 31H.CorporateResponsibility 31

Strategic Report

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A. Business Description

Brewin Dolphin is one of the largest providers of personalised investment management services in the UK and Eire. We offer a range of services from managing portfolios on anadvisoryordiscretionarybasis(ourprimaryservices)todealing,withoutadvice(executiononly)andwithadvice(advisorydealing).Ourclientsaremainlyindividuals,but also include Charities, Trusts and Institutions.

In recent years, as part of our primary offering, we have developed our financial planning service which we offer to clients, increasingly on an integrated basis with our investment management service, in order to offer a comprehensive solution to the demands of today’s investors.

TheGrouptodayisprincipallyaninvestmentmanagementbusiness,thoughourrootsdateback250yearsandare in stockbroking. We have grown rapidly since becoming listedontheLondonStockExchangein1994byacquiringsmaller regional private client stockbroking firms and hiring teams of investment managers. Over the past decade, the business has changed from predominantly offering executiononlyandadvisorydealingservicestoonewhich is focused on discretionary investment management. This is evidenced by the significant growth in discretionary assetswhichnowmakeup76%ofourmanagedassets,comparedtoc.40%in2004.

Our business model is based on providing a personalised service,combinedwiththeinvestmentexpertiseofeachindividual investment manager supported by our award winning research. Over recent years we have developed risk rated model portfolios for our smaller accounts.

The advice we offer is comprehensive. A complete wealth management service for private client portfolios, incorporating IndividualSavingsAccounts,Self-InvestedPersonalPensionsandEstatePlanningthroughtohighlyspecialisedinvestmentmandatesonbehalfofCharities,PensionFundsandInstitutions.

Localpresenceandproximitytoourclientshavealwaysbeena key component of Brewin Dolphin and helps us maintain a high level of personalised service. We are committed to this approach.Weprovideourservicevia35officesthroughouttheUKandEirewiththesupportof1,877employees.

We are committed to building the firm into the best in our industry for wealth management


Strategic Report(continued)

B. Market Environment

Personalfinancialservicesremainsagrowthmarketwith goodlong-termprospects.Thereisincreasingdemandassocietybecomesmoreself-reliantinspecificareassuchasretirementprovisionandlong-termcareaswellassavings ingeneral.Inaddition,thepolicyresponsestothe2008downturn have benefited those invested in risk assets such as equities and property and this has helped to create a higher number of investors.

The UK has an estimated two million individuals with liquid assetsover£100,0001 and the Wealth Management industry intheUKmanaged£548billion2 at the end of 2012. The table below shows the funds under management for the sector along with the market share. In view of the size differentials the sector could see further consolidation.

Our industry offers many opportunitiesThe market environment has changed considerably in recent years, presenting challenges and opportunities. Increased transparency combined with growth has encouraged both new entrants and new business models to challenge the status quo in the industry.

Increased regulatory focusThere have been welcome and important changes to regulation–themostnotableofwhichisthenewregulator,theFinancialConductAuthority(‘FCA’),andthedevelopmentof its wealth management division which provides both increased scrutiny and guidance to our sector. In addition, many new rules including the Retail Distribution Review (‘RDR’)arenowinplace,givingusastableperiodinwhichtoconsolidate and benefit from their introduction.

RDR’s full implementation in 2013 has intensified the competitive environment. The move away from financial advice for the mass market and increased pricing transparency has prompted a change in client behaviour.

Changing client behavioursClients are increasingly sophisticated and using more complextechnologywhichisleadingtothedevelopmentofnewpropositionsandfuellingarealtrendtowardsself-directed solutions. Investors are becoming more sceptical ofin-housefundsandproductsandalsoexpectmoreeducation and guidance from their advisers. Scale has become a more important consideration as investors require reassurance regarding the security of their assets as well as the robustness of the organisation dealing with their money.

Competition is intensifyingOne of the consequences of RDR has been the creation ofthesocalled‘advicegap’,whichhasledtoalargepotential market for investors seeking some guidance but whoareunabletojustifypayingforfulladviceorhavenosuchrequirement.Newpropositionsarebeingcreatedtoaddress this new market which could present a threat to established providers as they fully leverage the capabilities of today’s technology. In addition, there is increased competition for high net worth clients and these are two of the key challenges facing the sector.

StJames'sPlace 34.8 20.1%

BrewinDolphin 25.9 15.0%

Investec Wealth ManagementLtd 20.0 11.6%

Rathbones 18.0 10.4%

CharlesStanley 15.4 8.9%

Cazenove Capital Management 12.2 7.1%

SmithandWilliamson 12.1 7.0%

QuilterCheviot 12.0 6.9%

CloseBrothersAM 8.3 4.8%

JMFinn 6.5 3.8%

AshcourtRowan 4.1 2.4%

BrooksMacDonald 3.5 2.0%

Total 172.8 100.0%

Funds Under Management (FUM) of Peer Group

£172.8 billion

1 MDRC,UKHighNetWorth2013Report

2 TheCityUK,FundManagement2013Report

3PerAnnualReportandAccountswiththeexceptionofQuiltersCheviotwhichisbasedonotherpublicallyavailable information.

4 Sector comprises the competitors that Brewin Dolphin considers its peer group.

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Management has formulated a strategy in order to achieve theseobjectives,takingintoaccountourbusinessmodeland the market environment. This strategy is dynamic and isdesignedtobestexploittheopportunities,addressthechallengesinourmarketanddeliveronfourprioritiesto:-

• growthenumberofclientsweserviceandthereforetherevenue we generate;

• improveourefficiency;

• maintainsufficientcapitaltomaximiseopportunitiesandcover risks; and

• growourdividendinlinewithearnings.

Improving revenue and efficiency have been the principal strategic priorities for the last two years.

A series of initiatives are underway to deliver these strategic priorities, including the move to a transparent national charging structure for our services, the design and implementation of new technology to help lower support costs, and the restructuring of our organisational model to reduce the cost of central overheads.

C. Objectives and Strategy

OurprimarygoalandcorporateobjectivessummarisethelongtermtargetsfortheGroup.Thesehavebeenrefreshedtobuildonitsheritageandtheprinciplesonwhichithasprosperedfor250years.

The new management team completed an initial appraisal of the strategy, reported on at the time of our interim results. Thisre-affirmedthetwostrategicpriorities,namelygrowthandefficiency,butalsoaddedtwonewstrategicpriorities:

• maintainsufficientcapitaltomaximiseopportunitiesandcover risks; and

• ensurethatshareholdersfullyparticipateintheperformance of the business by growing the dividend in line with earnings.

Additionalequitycapitalof£38.6mwasraisedviaaplacingto underpin and accelerate the strategy and help deliver on the two additional priorities of capital sufficiency and dividend growth.

PrimaryGoal

Corporate Objectives

Strategic Priorities

Generateshareholdervalueby growing revenue and delivering a high quality

service to our clients efficiently

Build a business to be proud of based on values of client service, teamwork

and integrity

Beanexcellent employer

Manage responsibly

for long term

Growourdividendinlinewith earnings

Improve our efficiency

Maintain sufficient capitaltomaximiseopportunities and

cover risks

Growthenumberofclients we serve and

therefore the revenue we generate


Thenewfocusreflectsourviewthattomeetourobjectivessuccessfully in this environment our business model needs to evolve,inparticular:

• weneedtosimplifywhatwedoandconcentrateonourprimary services. This will not only help us maintain our competitive position by improving the quality of what we can do best for clients, it will also help improve operational efficiency and create additional capacity to invest in the business; and

• weneedtoinvestinourprimaryservices,successfullyintegrate technology and continue to improve the client experience.

The business will grow and prosper if it simplifies and focuses the business model. A strategy of growth purely reliant on team acquisitions is, in our view, unsustainable in the current market environment. We believe that by building a simplified scalable business, focused on delivering our primary services we can achieve a leadership position in the industry.

Ourstrategydoesallowforexpansionthroughwholebusinessacquisition and hiring of individuals but only when we can successfully integrate them into our culture and business model. In the past our acquisitions strategy has involved insufficient integration which has led to inefficiencies and lack of standardisation in key business processes. This has resulted in higher operational costs, which have impaired the ability of the business to reinvest in new technology to continue improving client service. It has also had a negative impact on shareholder returns and the management of risk.

The strategy has sought to address these issues over the last two years and we have been successful at standardising elements of the business such as pricing, client valuations and client communication. There is significant scope to further improve the business processes without changing the

personalised nature of the service we offer. This challenge will be addressed by many of our current strategic initiatives in ordertode-riskandimprovetheefficiencyofthebusiness.

A series of actions, some of which are underway and others completed are helping to deliver our strategic priorities. These are being pursued by management to grow the number of clients we service and therefore the revenue we generate andtoimproveourefficiencysothatweachieveour25%margin target.

D. Progress report

Manyprojectshavebeenundertakenoverthepastyeartosupport our strategic priorities.

GrowthWe have completed moving our Discretionary and a large portionoftheManagedAdvisoryandExecutionOnlyservicesontostandardnationalpricing.Wenowhavecirca£20bn onnationalpricingbutthereisstillapproximately40%of our Managed Advisory business to complete during 2014. This has allowed us to continue to remove Unit Trust trail from the business and standardise the yield we receive for theservicesweofferatamoresustainablelevel:

Service 2013 Yield bps

2012 Yield bps

Discretionary 96 91

Advisory Managed 56 46

Advisory Dealing 29 42

ExecutionOnly 30 26

Over the last year many clients have moved away from our dealing based services into our primary managed services and this is evident in our client fund flows.


Therefocusedstrategyisunderpinnedbyseveralinitiatives:

Initiatives Improve market competitiveness and drive organic growth Achieveoperationalexcellencetoimprovequalityandlowercosts

Enhance the service model for our clients

Invest in technology to improve quality of service

Invest in our people

Develop plans to attract new clients

Focusourbusinessaroundourprimaryservices

Sustainable and transparent pricing

Increased cost discipline

Simplify and streamline our operating model

Harnessourtechnologytolowercosts

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Totalmanagedandadvisedfundswere£28.2bn,upby8.9%from a year ago. The strategy of focusing on our Discretionary service and our move to fair and consistent national pricing across all client services has resulted in a continued move away from Advisory to Discretionary services.

Discretionaryfundsgrewby£3.1bnintheyear,a17%increase(2012:16.7%increase)asaresultofcontinuinggoodnetinflowsof£1.1bn(2012:£1.0bn)andhigher marketlevels£2.0bn(2012:£1.6bn).

Advisoryfundsfellby£0.8bnintheyear,a10.4%decline(2012:8.3%decrease),asaresultofnetoutflowsof £1.5bn(2012:£1.1bn)partiallyoffsetbyhighermarketlevels£0.7bn(2012:£0.4bn).Thefiguresalsoshowthelackofdemand from new clients for our Advisory Managed and Advisory Dealing services which continue to see outflows. The reduction in demand for these services combined withtheabsenceofanyyieldpremium(tocovertherisk ofprovidinginvestmentadvice)andtheflowtoExecutionOnly has shaped Management’s view that we should withdraw our Advisory Dealing service.

ClientfundsheldonanExecutionOnlybasisgrewby £1.3bn,a24%increaseofwhich£0.9bnrepresentednewinflowsand£0.7bnwastransferredfromAdvisorytoExecutionOnlyasaresultofourservicereviewandmovetostandardpricing.Duringtheyear,theFTSE100indexincreasedby13.4%andtheFTSEAPCIMSBalancedIndexincreasedby10.0%.

Discretionaryfundsnowmakeup76%(2012:70%)oftotalmanaged and advised funds, continuing the long term trend andrepresentinggoodprogresstowardsourtargetof80%by 2016.

During 2014 we will introduce an enhanced investment process.Weaimtoimprovetheclientexperiencearounda consistent structure which will be supported by new technology to underpin the change. This will mean we can consolidate our operating model within a national framework andensureweofferamoreconsistentclientexperience.

£bn (roundedtoonedecimalplace)

30 September

2012 Inflows Outflows

Transfers within

Managed/ Advised

Other Transfers NetFlows

Market Movement

29 September

2013

Discretionary Managed

18.2 2.1 (1.0) 0.3 (0.3) 1.1 2.0 21.3

Advisory Managed 4.9 0.1 (0.5) (0.0) (0.1) (0.6) 0.5 4.8Advisory Dealing 2.8 0.1 (0.4) (0.2) (0.3) (0.9) 0.2 2.1

Total Advisory 7.7 0.2 (1.0) (0.3) (0.4) (1.5) 0.6 6.9

Total Managed/Advised 25.9 2.3 (2.0) (0.0) (0.7) (0.4) 2.7 28.2

ExecutionOnly 5.4 0.9 (0.7) n/a 0.7 0.9 0.4 6.7

Total Funds 31.3 3.2 (2.7) (0.0) 0.0 0.5 3.1 34.9

Indices 29 September 2013

30 September 2012 Change

FTSEAPCIMSPrivateInvestorSeriesBalancedPortfolio 3,315 3,014 10.0%

FTSE100 6,513 5,742 13.4%

Funds under management (“FUM”)


To benefit from our enhanced investment process and more focused service offering, we intend to develop five growth channelstoachieveourtargetof5%pagrowthfromnetinflows in Discretionary business.

a) Direct –AnewwebsitedueinSpring2014willfocuson our primary services combined with a number of marketing initiatives.

b)Agent –FinancialAdvisersarebigsupportersofourbusiness and we believe our enhanced investment process will facilitate new, national partnerships.

c) Customer Advocacy–Ourexistingclientsareourbestadvocatesandweintendtobuilduponourhigh“NetPromoterScore”.

d)Professional Services–Ourpropositiontoaccountantsand solicitors will be updated during 2014.

e) Direct to Client Proposition –Thereisasignificantdemand for a simplified, lower cost service. We have an award winning model portfolio service and we are working on delivering this service directly to consumers.

We believe that the best way to grow is organically and our energies are devoted to building the brand value and meeting the needs of the market.

Improving EfficiencyWe have made progress in simplifying the business model in parallel to the development of our new IT systems. We successfully implemented the first stage of our new core operatingsystemintoStocktrade,ourExecutionOnlyservice, in September 2013 and we are already seeing the benefits. We will now roll the system out across the rest oftheGroupduring2014andimplementnewsoftwaretosupportourInvestmentManagementandFinancialPlanningservices. Technology and process improvement is critical to our success and we will continue to invest in these areas over the foreseeable future.

Inconjunctionwiththedevelopmentofournewoperatingsystem we are also simplifying our service offerings. We have reviewed the risk, profitability and demand for our ancillary services many of which are either in the process of being closed or are no longer available to new business. This will lead to a greater concentration of resource around our primary discretionary wealth service.

The rationalisation of our services, combined with our enhanced investment process and supported by new technology, should facilitate a more efficient balance of AdviserstoFundsunderManagement.

We have reviewed the number of offices which resulted in sixofficesbeingmergedorclosed(Inverness,Teesside,Bradford,Hereford,StokeandSwansea).AtthesametimewehaveexperiencedthedepartureofasmallnumberofteamsincludingthemajorityofourLeicesteroffice.Despitethese reorganisations and departures, some of which were to competitor firms, early indications of clients remaining are positive. This has been achieved without having to hire any new staff.

We also reviewed the Appointed Representatives of the Groupinthecontextofourrefocusedstrategyandconcludedthattherisksofself-employedagentsprovidingadvice under our brand, in return for half the commission they generated was an out of date approach and not in the best interests of our clients. Over the year several Appointed Representatives have transferred their business elsewhere and one has become an employee.

Maintaining Capital SufficiencyAshighlightedinourobjectivesandstrategysection,wehaveadded a new strategic priority to ensure that sufficient capital solvencyismaintainedinorderto:

1 Financethenecessaryinvestmentinthebusiness,todeliverthe strategic priorities and stated operating margin target; and

2 Providesufficientcapacitytosupportthekeyrisksanduncertainties.

TheGroupsuccessfullyraised£38.6mequitycapitalviaaplacing, in order to increase capital levels. Together with profits retained during the year, this helped our capital solvencylevelsincreasefrom123%inSeptember2012to226%inSeptember2013.

Weintendtooperateataminimumsolvencylevelof150% in future.

Growing the Dividend to ShareholdersThe Board is implementing a dividend policy from 2014 basedonatargetdividendpayoutratioofbetween60%to80%ofannualreportedadjusteddilutedearningspershareto deliver the new strategic priority of ensuring that dividends growinlinewithunderlyingadjustedearnings.Theobjectiveof this priority is to ensure that shareholders fully benefit in a timely way from any improvement to earnings.

Historically,theBoardhasadoptedapolicyofpayingbroadlyequal interim and final dividends on the ordinary shares. In the future, the Board intends to establish an interim dividend and grow it in real terms. The variable final dividend will be baseduponthefullyeartargetdividendpayoutratioof60%to80%ofadjustedearningspershare.


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Discretionary income per CF301

£283k £370k £490k Target

2012 2013

Target

% of managed FUM in discretionary service

70% 76% 80% Target

2012 2013

Discretionary FUM per CF301

£33m £41m £50m Target

2012 2013

Target

Average client portfolio

1 ControlledFunction30(CF30)isanFCAapprovedcustomerfunctionofdealingin,advisingonormanaging investments on behalf of clients.

£420k £500k Target

2012 2013

Managed advisory service yield

46bps 56bps 75bps Target

2012 2013

Discretionary service yield

91bps 96bps

2012 2013

Minimum 150%

20132012

Solvency ratio

123%

226%

2013 20162012

Adjusted PBT margin

5

10

15

20

25

16.5%

18.5%

Target 25%

Discretionary FUM inflows

2012 2013 2014

6.5% 6% Target +5%

Final Dividend

2012 2013

3.6p5.05p

Full Year Dividend

2012 2013

7.15p8.6p

95bps Target

Key performance illustrations


Strategic Priority Metrics Definition/Source Progress Targets Potential challenges/(response)

Revenue Growth DiscretionaryFUMinflows The value of annual net inflows as a percentage of openingFUMforourDiscretionaryservice

6% 5% Failuretoinnovateservice–Strategy focused on increasing competitiveness with investment in service

FailuretocompletetransitiontonationalratecardforAdvisorymanagedservice–Centrally led project has been key strategic initiative

Adverse financial market conditions, loss of clients, key staff,failuretostaycompetitive–Key focus of strategy, staff incentive schemes

Discretionary service yieldThe average annual total fee and commission income measured as a percentage return on average annual FUMforourDiscretionaryservice

91 96bps 95bps

Managed Advisory service yield As above, for our Managed Advisory service 46 56bps 75bps

Revenue growth ThepercentageincreaseinGrouptotalannual(adjusted)income 9% n/a

Improved Efficiency

AdjustedPBTmargin ReportedGrouptotalannualadjustedprofitbeforetaxasapercentageofGrouptotal(adjusted)income 16.5 18.5% 25%+

Failuretoachieveoperationalefficienciestoenablereducedsupportheadcount–Key focus of strategy

Failuretodelivernewtechnologytoimprovecapacitytomanagemoreclientsperhead–Key focus of strategy

Inability to attract new clients or accounts of sufficient value–Key focus of strategy

DiscretionaryincomeperCF30

Total annual fee and commission income from our Discretionary service divided by the period end number of client facing professional investment managersandfinancialplanningstaff(“CF30s”)

£283k £370k £490k

%ofmanagedFUMinDiscretionary service

TheproportionofourperiodendvalueofclientFUMin our Discretionary service, as a percentage of total periodendmanagedandadvisedFUM

70 76% 80%

DiscretionaryFUMperCF30TheperiodendtotalvalueofclientFUMinourDiscretionary service divided by the period end numberofclientfacingstaff(asabove)

£33m £41m £50m

SupportstafftoCF30ratio The ratio of period end total of non client facing professional staff to total period end client facing staff 2.5to1 2.0 to 1


TheaveragevalueofFUMperclientforourmanaged/advised services. Calculated based on period end totalreportedmanaged/advisedFUMdividedbyperiod end number of client relationships

£420k £500k

Capital Sufficiency Solvency ratioTheratio,asapercentage,oftheGroup’speriodendtotal regulatory capital to the period end minimum total regulatory capital requirement

226% Min150%

Dividend Growth

Dividend pay outTheratiooftotalannualdividendpershare(interimandfinal),asapercentage,tototalreportedannualadjusteddilutedearningspershare

57 58% 60-80%Loss of profitability

Availability of distributable reserves as impacted by non-adjustedlossese.g.furtherexceptionals, write-offs

AdjustedEPSgrowth Theannualpercentagechangeinreportedadjusteddiluted earnings per share 19.2% n/a

Dividend growth The percentage change in total annual dividend per share(interimandfinal) 20% n/a


Key performance indicatorsTo implement our strategy successfully, we must measure progress. The table below summarises the key performance indicators for each strategic priority, with a measure of our performance to date. We also indicate potential challenges to success and the actions we are taking to mitigate them.

A detailed explanation of the calculations used for this year’s KPIs are contained in the Appendix (page 122).

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Strategic Priority Metrics Definition/Source Progress Targets Potential challenges/(response)

Revenue Growth DiscretionaryFUMinflows The value of annual net inflows as a percentage of openingFUMforourDiscretionaryservice

6% 5% Failuretoinnovateservice–Strategy focused on increasing competitiveness with investment in service

FailuretocompletetransitiontonationalratecardforAdvisorymanagedservice–Centrally led project has been key strategic initiative

Adverse financial market conditions, loss of clients, key staff,failuretostaycompetitive–Key focus of strategy, staff incentive schemes

Discretionary service yieldThe average annual total fee and commission income measured as a percentage return on average annual FUMforourDiscretionaryservice

91 96bps 95bps

Managed Advisory service yield As above, for our Managed Advisory service 46 56bps 75bps

Revenue growth ThepercentageincreaseinGrouptotalannual(adjusted)income 9% n/a

Improved Efficiency

AdjustedPBTmargin ReportedGrouptotalannualadjustedprofitbeforetaxasapercentageofGrouptotal(adjusted)income 16.5 18.5% 25%+

Failuretoachieveoperationalefficienciestoenablereducedsupportheadcount–Key focus of strategy

Failuretodelivernewtechnologytoimprovecapacitytomanagemoreclientsperhead–Key focus of strategy

Inability to attract new clients or accounts of sufficient value–Key focus of strategy

DiscretionaryincomeperCF30

Total annual fee and commission income from our Discretionary service divided by the period end number of client facing professional investment managersandfinancialplanningstaff(“CF30s”)

£283k £370k £490k

%ofmanagedFUMinDiscretionary service

TheproportionofourperiodendvalueofclientFUMin our Discretionary service, as a percentage of total periodendmanagedandadvisedFUM

70 76% 80%

DiscretionaryFUMperCF30TheperiodendtotalvalueofclientFUMinourDiscretionary service divided by the period end numberofclientfacingstaff(asabove)

£33m £41m £50m

SupportstafftoCF30ratio The ratio of period end total of non client facing professional staff to total period end client facing staff 2.5to1 2.0 to 1


TheaveragevalueofFUMperclientforourmanaged/advised services. Calculated based on period end totalreportedmanaged/advisedFUMdividedbyperiod end number of client relationships

£420k £500k

Capital Sufficiency Solvency ratioTheratio,asapercentage,oftheGroup’speriodendtotal regulatory capital to the period end minimum total regulatory capital requirement

226% Min150%

Dividend Growth

Dividend pay outTheratiooftotalannualdividendpershare(interimandfinal),asapercentage,tototalreportedannualadjusteddilutedearningspershare

57 58% 60-80%Loss of profitability

Availability of distributable reserves as impacted by non-adjustedlossese.g.furtherexceptionals, write-offs

AdjustedEPSgrowth Theannualpercentagechangeinreportedadjusteddiluted earnings per share 19.2% n/a

Dividend growth The percentage change in total annual dividend per share(interimandfinal) 20% n/a



E. Results for the Year

Financial HighlightsThe strong underlying results for the year ended 29 September 2013 reflect the combination of improving market conditions andprogresswehavemadeondeliveringourstrategicobjectives.Adjustedprofitbeforetaxgrewby22%to£52.3mfrom£42.9mlastyearandadjusteddilutedEPSgrewby19%to14.9ppersharefrom12.5plastyear.

Theunderlyingadjustedprofitgrowthwasdrivenbyincreasedincome,9%higherthanprioryear,togetherwithimprovingefficiencyasreflectedbyfixedoperatingcostgrowthbeinglimitedto3%andtheincreaseinadjustedprofitbeforetaxmarginto18.5%from16.5%intheprioryear.

Profitbeforetaxfortheyearwas£28.6m(2012:£29.9m),a4%declineontheprioryear.Thiswasaresultofsignificantrestructuringcostsincurredintheyearandmaterialprovisionsforonerouscontractswhichareexplainedbelow.

2013 £m

2012 £m

Change

Total income 283.7 260.4 9%

Salaries (105.3) (98.6) 7%

Other operating costs (83.4) (85.1) -2%

Total fixed operating costs (188.7) (183.7) 3%

Adjustedprofitbeforevariablestaffcosts1 95.0 76.7 24%

Variable staff costs (43.7) (34.6) 26%

Adjustedoperatingprofit1 51.3 42.1

Netfinanceincomeandothergainsandlosses 1.0 0.8

Adjusted profit before tax1 52.3 42.9 22%

Exceptionalcosts/gains (11.2) (1.1)

Amortisation of client relationships (12.5) (11.9)

Profit before tax 28.6 29.9 -4%

Taxation (7.3) (8.4)

Profitaftertax 21.3 21.5

Earnings per share

Basic earnings per share 8.5p 9.1p

Diluted earnings per share 8.0p 8.6p

Earnings per share1

Basic earnings per share 15.8p 13.2p

Diluted earnings per share 14.9p 12.5p

1 Excluding redundancy costs, additional FSCS levy, onerous contracts provision, amortisation of client relationships and disposal of available-for-sale investment.

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Reconciliation of adjusted income and operating expenses to financial statements

2013 £m

2012 £m

Income–perfinancialstatements 283.7 269.5

Reclassificationofitemspreviouslyreportedasoperatingexpenses – (9.1)

Adjusted income used for purposes of financial highlights and strategic report 283.7 260.4

Otheroperatingcosts–perfinancialstatements 83.4 94.2

Reclassification of items previously reported as income – (9.1)

Adjusted other operating expenses used for purposes of financial highlights and strategic report 83.4 85.1

PriortotheintroductionofRDR(1January2013),BrewinDolphincollectedincomefromclientportfoliosonbehalfofintermediarieswhichitrecordedasincomewithanoffsettingexpense.PostRDR,intermediariesarerequiredtocollectandrecord their income directly from clients and consequently this income is no longer recorded in Brewin Dolphin’s results.

Thishasnoimpactonreportedprofit,howeverwehavechosentoadjustthecomparativefiguresfor2012tobeonapostRDRbasis as we believe this offers a more fair and appropriate analysis of underlying income and cost trends.

IncomeTotalincomegrewby9%to£283.7m(2012:£260.4m)intheyearandisanalysedasfollows:

2013 £m

2012 £m

Change

Commissions 93.5 84.1

Fees 152.0 121.4

Core income1 245.5 205.5 19%

FinancialPlanning 11.7 9.3

Trail 14.8 29.2

Interest 11.7 16.4

Other income 38.2 54.9 -30%

Total income 283.7 260.4 9%

1 Core income is defined as income derived from fees and commissions charged on management and/or advice and execution activities relating to client portfolios.


CoreincomefromourDiscretionary,AdvisoryandExecutionOnlyservices,grewstronglyby19%to£245.5m(2012:£205.5m).This was driven by a combination of increased average client fund balances due to higher market levels and continued inflows, and improved returns as a result of the move to new pricing structures.

Income and yield by service type

2013 £m

2012 £m

Change

Income

Discretionary 192.7 156.3 23%

Advisory Managed 27.5 23.3 18%

Advisory Dealing 7.2 12.8 -44%

Total Managed/Advised 227.4 192.4 18%

ExecutionOnly 18.1 13.1 38%

Total 245.5 205.5 19%

Yield Bps Bps

Discretionary 96 91

Advisory Managed 56 46

Advisory Dealing 29 42

ExecutionOnly 30 26


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ThestronggrowthinFUMandimprovedyieldresultedina23%increaseinincometo£192.7m(2012:£156.3m)fromourDiscretionaryservice.DespitelowerlevelsofAdvisoryManagedFUM,overallincomefromManaged/Advisedservicesincreasedby18%duetotheimprovedyieldfromre-pricing.Thedeclineinincomefromadvisorydealingresultedfromthesteepdeclineinfundsunderthiscategoryasaresultoftheservicereviewandre-pricinginitiative.

Overallfeesandcommissionsgrew,withfeesgrowingparticularlystrongly,up25%to£152.0m(2012:£121.4m)asaresultofthegrowthinDiscretionaryservicesandtheon-goingintroductionoffeestoallAdvisoryManagedaccountsinlinewithnewpricing structures.

Aggregateotherincomedeclinedby30%to£38.2mfrom£54.9min2012,primarilyduetotheplannedsignificantreduction intrailincomewhichdecreasedto£14.8m(2012:£29.2m)asaresultofourinitiativetoswitchtotrailfree‘cleanunits’.Sincethebeginningofthisyearallnewfundshavebeenpurchasedona‘clean’basisposttheimplementationofRDR.

Incomefromfinancialplanningactivitiesgrewby26%duringtheyearto£11.7m(2012:£9.3m)asaresultofourstrategytooffer an integrated wealth management service.

Netinterestearnedfromthemanagementofclientcashdepositsreducedby29%intheyearto£11.7m(2012:£16.4m)asaresultof reduced interest rates on deposits available from our banks, whilst maintaining interest rates payable on client cash balances.

Costs

Reconciliation of adjusted operating expenses to financial statements

2013 £m

2012 £m

Change

Fixedstaffcost 105.3 98.7 7%

Underlyingnon-staffcosts 84.2 89.7 -6%

Insurance recovery (0.8) (4.7)

Non-staffcosts 83.4 85.0 -2%

Totaladjustedfixedoperatingcosts 188.7 183.7 3%

Variable staff costs 43.7 34.6 26%

Redundancy costs 4.8 0.6

Additional FSCS levy 1.1 0.5

Onerous contracts 6.2 –

Totalexceptionalcosts 12.1 1.1

Amortisation of client relationships 12.5 11.9

Total adjusted operating expenses 257.0 231.3

Reclassification1 – 9.1

As reported in Income Statement 257.0 240.4

1 Reconciliation of adjusted income and operating expenses to financial statements (page 19)



Significant progress has been made in bringing costs under control during the year.

Fixed staff costsFixedstaffcostgrowthwaslimitedto7%yearonyear,belowtherateofincomegrowth,areversalofpreviousyears’trendsand contributing to the improved operating margin. This was achieved through a combination of hiring discipline together with reducedrunratecentralfunctioncostsfollowingtherestructuringexerciseundertakenduringtheyear.Theexceptionalcostsassociated with this are described below.

Variable staff costsVariablestaffcostsincreasedby26%to£43.7m(2012:£34.6m).Theincreasewasdrivenprimarilybytheriseinadjustedprofitbeforevariablestaffcosts(+24%)towhichthemajorityofvariablestaffcostislinked,andmanagement’sdecisiontoincreasethe overall level of variable staff compensation to assist in staff retention.

Theoverallratiooftotal(fixedandvariable)staffcoststoadjustedincomeincreasedaccordinglyduringtheyearto53%from51%in2012.

Non-staff costsAsignificantreductioninunderlyingnon-staffcostsof6%yearonyearwasachieved,fallingto£84.2mfrom£89.7min2012.

Thiswasduetotightercontrolsarounddiscretionaryexpenditure,inparticularinareassuchasmarketing,advertisingandlegal/consulting fees, and the reduction contributed significantly to the improvement in operating margin during the year.

Insurance recoveryDuringtheyeartheGroupreachedfinalsettlementwithitsinsurerswithrespecttocertainmaterialpastclaimsrelatingtoinsuredlossesincurredinprioryears.Thisresultedinanadditional£0.8m(2012:£4.7m)recoverybeingrecognisedintheyear.

Exceptional costs

Redundancy costsRedundancycostsof£4.8m(2012:£0.6m)incurredintheyearprimarilyresultedfromtwoorganisationalrestructurings:

1) InMarchvariousheadofficefunctionswererestructuredinordertobetterservicebusinessneedsandreducecosts. Thisresultedinapproximately£3.0minredundancypaymentsandreducedcentralfunctionsheadcountbyapproximately100.Thisresultedinanongoingstaffcostssavingof£6.0mperannum.

2) Duringthesecondhalf,arationalisationofthebranchnetworkwasundertaken,resultingintheclosureofouroffices inInverness,Teesside,HerefordandSwansea.Themanagementofclientstogetherwithsomeofthestaffmovedto locallargerofficeswhereweconsiderwearebetterabletoserveourclients’needsinthelongerterm.Afurther£1.4m of redundancy payments were incurred as a consequence, with run rate savings to branch staff costs to be felt from 2014 onwards.

Onerous contracts provisionsProvisionsinrespectofonerouscontractstotalling£6.2m,£5.7mrelatingtosurpluspropertyspacewhichmaynotbeabletobecontinuallysub-let,weremadeintheyear.

Ofthis,approximately£0.5mrelatestotheremainingleasecommitmentsofuptofouryearsonrecentlyclosedoffices,£4.3mrelatestoleasecommitmentsofupto20yearsonexcessspaceresultingfromtheconsolidationofoperationsintooneofficeinEdinburgh,and£0.9mfromexcessspaceresultingfromtheconsolidationintooneofficeinLondon.The£0.4mnon-propertyrelated provision relates to software applications no longer being used as a result of the central functions restructuring. The maximumtotalfutureundiscountedexposureresultingfromtheaggregateoftheonerouspropertyleasesisapproximately£23.0m.

Exceptional gainDuringtheyeartheGroupsolditsremainingstakeinNPLUS1SingerLtdrealisinganexceptionalgainondisposalof£0.9m.

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Cash flow and capital expenditureOur strategy aims to deliver not only growing earnings, but also rising free cash flow, being the cash generated from operations less what we invest in the business. This will ensure that dividend growth can be aligned with earnings growth without material short term reductions to tangible equity.

Thetablebelowshowshowunderlyingprofitabilitytranslatedintocashgeneration:

2013 £m

2012 £m

Adjusted profit before tax 52.3 42.9

Less–Exceptionalcosts/gains (11.2) (1.1)Amortisation of client relationships (12.5) (11.9)

Statutory PBT 28.6 30.0Add–noncashexpensesincluded 27.1 26.9 Less–discontinuedoperations – (3.5)Less–pensioncontributionsnotincludedabove (3.0) (3.0)

Operating cash flows before working capital 52.7 50.4Less–taxpaid (6.3) (5.9)

Underlying cash from operations 46.4 44.5Net investment–Purchaseofclientrelationships (3.4) (6.9)–Purchaseoffixedassets (4.5) (7.4)–Purchaseofsoftware (15.1) (16.4)–Netgainsanddividendsonavailable-for-saleinvestment 1.2 0.3

(21.8) (30.4)

Underlying free cash flow 24.6 14.1

Net financing –Dividendspaid (18.1) (16.9)–Sharespurchased (0.2) (1.9)–Sharesissuedforcash 41.9 0.7

23.6 (18.1)

Underlying increase/(decrease) in cash 48.2 (4.0)

Decrease/(increase)inworkingcapital 17.6 (12.1)

Movement in firm's cash 65.8 (16.0)

Movement in client balances (3.5) 2.6

Movement in total cash 62.3 (13.4)

Reconciliation to reported cash from operationsUnderlying cash from operations per above 46.4 44.5Movement in client balances per above (3.5) 2.6Movement in working capital per above 17.6 (12.1)

Cash from operations per note 34 60.5 35.0


TheGroup’scashbalancesincreasedmateriallyby£65.8mto£113.5mat29September2013,from£47.8mat 30 September 2012.

Inadditiontounderlyingcashgeneratedfromoperationsof£46.4m(2012:£44.5m),thelargeincreasewastheresult primarilyoftheequitycapitalraisinginMay2013,generatingnetproceedsof£38.6m,inadditiontopositiveworking capitalmovementof£17.6mintheyear.

Underlyingfreecashflowincreasedto£24.6mfrom£14.1min2012,duetolowertotalcapitalinvestmentintheyear (£21.8m,versus2012:£30.4m).

Upfrontcashspentonacquiringteamsofinvestmentmanagersandtheirclientrelationshipsdeclinedto£3.4mfrom £6.9min2012duetothesignificantabsenceoffurtherteamhiresintheyearbeyondwhatwasalreadyinprogressat 30 September 2012.

Investmentinfixedassetsdeclinedto£4.5mintheyear(2012:£7.4m),primarilyduetolowerspendoncomputerhardware in support of the implementation of the new core software operating system.

Developmentofthenewcoresettlementsystemwhichhasbeenunderwayfor18months,reflectedintotal£16.8m further capital investment in computer hardware and software development costs to bring the new software into use. Inadditionto£17mspentin2012,totalcumulativeinvestmentintheprojectisapproximately£34m.Itisanticipatedanadditional£20mwillbespentoverthecourseofthenext18monthstobringtheimplementationtoasuccessfulcompletion.

Dividendspaidintheperiodcameto£18.1m(2012:£16.9m).

TherehasbeenacashoutflowfromthepurchaseofsharesfortheShareIncentivePlan(SIP)of£0.2mand£nilforthe DeferredProfitShareScheme(DPSP)duringtheyear,(2012:£1.9mSIPandDPSP).TheGroupinstructedthetrustees oftheDPSPtopurchase£4mofsharesaftertheendofthefinancialyear.

Investment in new technology to improve the quality of our client service, as well as lowering the cost of delivering that service, is a key initiative to achieve the strategic priority of improving operational efficiency. We will continue to develop ways of investing and successfully integrating new software solutions into our business model. This will result in future capitalinvestment,thoughatalowerlevelthanthecurrentrunrate,oncethecoresystemisfullyinplace.Freecash flow as a proportion of underlying earnings should therefore increase over time as earnings grow.


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Resources available to the GroupOurprimaryassets,inadditiontoouremployees,arethevalueof:

1) Clientrelationshipsacquiredviaintroductionfromnewteamsofinvestmentmanagershired;

2) Fixedtangibleassets,i.e.investmentinfixturesandfittingsinourofficesandincommunicationsandtechnologyhardwaretosupport our operations; and

3) Purchase,developmentandconfigurationofnewsoftwareapplicationstosupportouroperations.

We invest across all three categories to develop the assets of the business, securing growth and preserving and improving our operational efficiency.

As our strategy has changed in recent years from focusing solely on growth by acquiring additional client relationships to seeking also to improve operational efficiency, we have been investing more in the development of new software and less on acquiring teams of investment managers.

Pension FundTheactuariallossonthepensionfundthisyearwas£2.2m(2012:£5.1m).UnderIAS19,largeannualfluctuationscanoccur.TheGrouphasagreedtomakeadditionalpensioncontributionsof£3mperannumwiththeaimofpayingthedeficitoff,overthenextsevenyears.

Thenetpensiondeficitreducedby£0.6mduringtheyearto£9.2m(2012:£9.8m).Thisprimarilyresultedfrombetterthanexpectedinvestmentreturnsonassetsexceedingtheincreaseintheactuarialvalueofliabilities.

Capital Structure, Treasury Policy, Liquidity and Capital RequirementAt29September2013theGrouphadnetassetsof£221.6m(2012:£162.7m).Netassetsexcludingintangibleassetsandsharestobeissuedof£109.1m(2012:£61.1m)broadlyrepresenttheGroup’scapitalforregulatorypurposes.Thesenetassetswerelargelyrepresentedbynetcashandcashequivalentsof£137m(2012:£72m),including£20.3m(2012:£23.8m)ofclientsettlementmoney.TheGrouphasanagreedunsecuredoverdraftfacilityof£15m(2012:£15m).AttheperiodendtheGrouphadasurplusofnetassetsforregulatorycapitaladequacypurposesof£60.5m(2012:£11.4m),theincreaseismainlyattributable to the capital raised during the placing in May.

TheGroupaimstoholdatleast90%ofbothclients’andGroups’moneyonlyatmajorUKclearers.ClientmoneyissegregatedunderrulessetoutintheFCAClientAssetSourceBook.

Client stock is segregated and held in our nominee companies. Stock is settled via the Crest System which is owned by Euroclear,ahighlyratedbank,and,inthecaseofforeignstock,theBankofNewYorkMellon.

Market risk, foreign currency risk, liquidity risk, interest rate risk, and credit risk are small and set out in detail in note 26 to the financial statements.


Post Balance Sheet EventsThere have been no material post balance sheet events.

Accounting PoliciesThere were no changes in accounting policies during the year.

Significant RelationshipsNoclientprovidesmorethan2%oftheGroup’srevenue.TheGrouphastwomainsuppliersofcomputersoftware.

Going ConcernTheGrouphassubstantialoperationalgearingarisingfromitsfixedcostbase;thisismitigatedbyvariablestaffcostswhichifincomefallswouldreducevariablecosts.Cashbalancesrangedbetween£28mand£124movertheyear.

TheGroup’sbusinessactivities,performanceandposition,togetherwiththefactorslikelytoaffectitsfuturedevelopment,aresetoutintheStrategicReportwhichalsodescribesthefinancialpositionoftheGroupincludingitsliquiditypositionandborrowing facilities.

TheGroup’sobjectives,policiesandprocessesformanagingitscapital,itsfinancialriskmanagementobjectives,detailsofitsfinancialinstrumentsanditsexposuretocreditriskandliquidityriskaredescribedinnote26tothefinancialstatements.

TheDirectorsbelievethattheGroupiswellplacedtomanageitsbusinessriskssuccessfully.TheGroup’sforecastsandprojections,takingaccountofpossibleadversechangesintradingperformance,showthattheGrouphasadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.Accordingly,theDirectorscontinuetoadoptthegoingconcernbasis for the preparation of the financial statements.


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F. Principal Risks and Uncertainties

RisksTheGroup’sprincipalrisksanduncertaintiestogetherwiththekeymitigantsandcontrolsaresetoutonpages28and29.

DetailsoftheriskframeworkandgovernancearesetoutintheRiskCommitteereport(pages44–45).

TheoriginsandnatureoftheGroup’sprincipalriskschangeovertimeandaretheresultof,amongotherfactors,themarketenvironmentandtheGroup’sstrategy.

AsdiscussedabovewhenexplainingtheGroup’scurrentstrategy,managementtakescarefulconsiderationoftheriskimplications of different strategic initiatives. The strategic refocus instigated by the new management team has in part been drivenbytheappreciationthattheGroup’sriskprofilewasincreasingovertimeasaresultofexternalfactorssuchasincreasedregulatoryscrutinyandcompetitivepressuresaswellasfromtheGroup’sformerstrategyofinorganicgrowth.

The current strategy is aimed at managing and where possible reducing the operational, business and strategic risks over time.Forexample,initiativesalreadyunderway,suchasthestandardisationofthebusinessmodelandwithdrawalfromcertainactivities and services, should result in reduced risks.

Equally, the increased focus on organic growth will limit the addition of further risk relating to acquisitions. Risks resulting from the past strategy, however, may remain.

Inthelongterm,successfulimplementationofthestrategyandrealisationofstrategicprioritieswillreducetheGroup’sstrategicrisk by making it more competitive and better able to continue to prosper in a challenging market environment.

In the short term, however, strategic risks may well increase due to the challenges of delivering the business transformation itself.Inparticular,theinabilitytoimplementchangeduetoculturalinertia,vestedinterestsorpoorprojectmanagementisanemergent risk as the refocused strategy is implemented.


Risk Type Risk Description Key Mitigants & Control

Business & Strategic Risks

Strategy & Business Model

Acquisitions & Disposals

Weak due diligence on target companies or poorexecutionoftransactions and associated commercial terms

• Alignmentwithvendorsthroughearnoutarrangements

• Robustboardgovernanceandchallengefromindependentnonexecutives

• 3rdpartylegal,accountingandcommercialdue diligence commissioned

Profitability&Resilience

Failuretomanagevolumes,margins, earnings volatility, diversification, resilience to market dislocation and cost control or impact of industry levies and long term contractual commitments

• Initiativestoenhancemarginandreducefixedoperatingcostbase

• Initiativestoensureconsistentpricingofservices

• Variablestaffincentivepaylinkedtoprofitability

•Managematerialonerousleaseexposuresthrough subletting/assignment

Products,Clients & Reputation

ProductDifferentiation& Disintermediation

Failuretoinnovate,respondto new entrants to the market, offer distinct services at a competitive pricing level, and meet or respond to client needs

• Longtermloyalclientrelationshipsandfocuson personalised service

• Strategicinitiativestokeepinnovatingclientservice

• Initiativestoinnovateandofferwealth/investment management services to as broad as possible client types e.g. development of Direct to Client, managed services, intermediary propositions

• Diversifiedclientbase

Concentration

Over-relianceonkeyclientsor limited product range, or the failure to attract new business

Capacity & Constraints to Growth

Change Management

Inability to implement change due to cultural inertia, vested interests,orpoorprojectmanagement

• Effortstocommunicatetoemployeesthestrategicbenefits:improvedclientservice,higherjobsatisfactionandcareerprogression, better efficiency and growth opportunities and consequent reward potential

• Strongprojectgovernancewiththirdpartyspecialisthelp,directexecutiveoversightand board scrutiny

• Promotionofchangeadvocacynetworks intheGroup

Infrastructure

Failuretoinvestintechnologyand legacy systems, facilities or other support infrastructure

• Investinginnewsystemstechnologyandreplacing legacy systems

Management, Staff & Internal Culture

Development & Succession

Over-relianceonkeyemployees, a lack of career progression, inadequate training, and poor role handover

• Teamapproachtomanagingclientrelationships is a key aspect of the strategic initiatives to improve efficiency

• Activesuccessionplanningforkeymanagement roles underway

• Incentivepoliciestocreatesignificantequitytie-ins


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Financial Risks

PensionObligation Risk

Pensiondeficit

Increased funding requirements to meet financial obligations under a defined benefit scheme

• Schemeclosedtonewmembers

• RecoveryplanagreedwithTrustees

Operational Risks

Processes,Technology &ExternalServices

Trading ErrorsDealing errors, fat fingers, lateormis-bookedtradesand missed fund deal dates

• DedicatedemployeesundertakeallGroupdealing

• Closemanagementsupervisionofdealers

• Errorwarningsintegratedintodealingsystems

•Monitoringofhighvaluetradespreandposttrade

•Multiplevalidationsonequitytradingplatform

• Comprehensiveinsurancecoverforerrorsandlosses

•Monitoringoflossesandunderlyingcauses

ServiceProviders

Over-relianceorcriticaldependency due to lack of alternatives, or internal skills /capacity

• Internalcompetenciesbeingdevelopede.g.projectmanagement,changeandtransformationskills

• Keyvendorssubjecttoactivemanagementandgovernance framework, SLAs etc

•Monitoringofkeyriskindicators

Business Continuity

FailureofBusinessContinuityPlan(BCP)arrangementsdue to either an inadequacy or failure to test regularly

• DedicatedbusinesscontinuityfunctionwithintheGroup

• Largebranchnetworkwithappropriatecontinuity plans in place to ensure service can be maintained

• UseofexternalfacilitiestoenhancetheresilienceoftheGrouptoabusinesscontinuityevent

• BCPsubjecttoperiodictesting

• Rapidresponsetosignificantsystemsfailuresorinterruptions

Investment Suitability & Mandate Breaches

Investment Advice & Suitability

Insufficient or inadequate information on clients’ needs or capacity for loss, unsuitable advice, portfolio holdings inconsistent with clients’ attitude to risk, or failure to adhere to investment mandate.

• TreatingCustomersFairlyembeddedwithintheethosoftheGroup

• Implementationofnewinvestmentprocesssupported by new technologies

• RobustTraining&Competencyprogramme

• DedicatedBusinessStandardsTeamtoreviewbusiness quality

•MonitoringundertakenbyRisk&RegulationDepartment

•Managementinformation

• Effectivecomplainthandlingprocessandinsurance cover to mitigate losses




Operational Risks (continued)

Regulatory Compliance &FinancialCrime

RegulatoryFailure

Breaches of regulatory obligations, including client money/asset rules, and AML/KYC, conflicts of interest, breach of data protection obligations and failure to respond to regulatory change.

• ProactiveandeffectiveRegulation&Riskand Internal Audit functions

• Supervisoryprocessinplaceforstaffholding a controlled function

• Annualdeclarationstobemadebyallstaffreviewed by Regulation & Risk

• ClientAssetOversightCommitteeestablished to strengthen governance over client money and custody arrangements

• ClientAssetreviewsundertakenbyRegulation & Risk and Internal Audit

• Risk-basedAMLmethodologyusedforassessing all clients

• Systemsandcontrolstoensureemployeesaccess rights to data are appropriate

• PersonalAccountDealingandGiftspoliciesin effect and overseen centrally

• Regulation&RiskDepartmentadviseonimpact of regulatory change to prompt timely business responses

Fraud

Misappropriation of client or firm's assets, deliberate mis-reportingormisroutingof payments.

• Centralisedindependentinvoiceprocessingand payment

• AuthorisationprocessinplaceforkeydepartmentsthatdealwithclientsorGroupassets

• SegregationofdutiesacrosstheGroup

• Paymentauthorisationcontrols

•Monitoringofpaymentsandtransfers

• Comprehensiveinsurancecover

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G. Future DevelopmentsThe risks of not adapting our business model to a changing environment are significant and would erode shareholder value. Therefore we have developed an ambitious strategy to evolve the business and become the leading provider of Discretionary Wealth Management and the firm of choice for our clients, employees and shareholders.

We will continue to invest in our people, processes and technology to improve the client offering and if we achieve these goals, we will deliver significant value for shareholders, clients and employees.

H. Corporate ResponsibilityTheCorporateResponsibilityreportonpages36to38includesinformationonenvironmentalmatters,employees(includinggenderratios)andcommunityissues.

ApprovedbytheBoardofDirectorson3December2013andsigneditsbehalfby:

David Nicol Andrew WestenbergerChiefExecutive FinanceDirector

Simon Edward Callum Miller (n)(r) Chairman

SimonMillerwasappointedChairmaninMarch2013.HejoinedtheBoardin2005andbecame DeputyChairmanandSeniorIndependentDirectorin2012.HereadlawatCambridgeandwas calledtothebar.HesubsequentlyworkedforLazardBrothersandCountyNatwest.Since1994 hehasbeenChairmanofDunedinLLP.HeisalsoChairmanofArtemisAlphaTrust,Blackrock NorthAmericanIncomeTrustandJPMorganGlobalConvertibleIncomeFund.

David Richardson Nicol, CA, Chartered FCSI (n) Chief Executive

DavidNicolisacharteredaccountant.HewasaDirectorofMorganStanleyInternationalPLCfrom2004to2010.HeworkedforMorganStanleyfor26yearsinanumberofOperationsandFinancerolesandwasappointedEMEACAOin2004.DavidwasaNon-ExecutiveDirectorofEuroclearplcfrom1998to2010.Hetrainedandqualifiedin1980asaCharteredAccountantwithErnst&YoungandspenttwoyearsworkingforKPMGinHongKongbeforejoiningMorganStanleyinLondonin1984.DavidNicolisontheBoardoftheChartered Institute of Securities and Investments, the Council of the Institute of Chartered Accountants of ScotlandandisamemberoftheAppointmentCommitteeoftheHermesPropertyUnitTrust.DavidjoinedtheBoardasaNon-ExecutiveDirectorinMarch2012andwassubsequentlyappointedasChiefExecutiveinMarch 2013.

Andrew Westenberger, FCA Finance Director

AndrewWestenbergerjoinedtheBoardinJanuary2013.HewasGroupFinanceDirectorofEvolutionGroupPLCfrom2009untilAugust2011andaDirectorofitsprincipalsubsidiaryWilliamsdeBroeLimited.AndrewqualifiedasacharteredaccountantwithCoopers&Lybrand,andfrom2000to2008heldvariousseniorfinancerolesinLondonandNewYorkwithBarclaysCapital.

Stephen Ford, FCSI, CAIA Head of Investment Management

StephenFordjoinedBrewinDolphininMarch2000andhasheldanumberofseniormanagement roles.HewasappointedasaDirectoroftheoperatingcompany,BrewinDolphinLimitedin2009andofBrewinDolphinHoldingsPLCinMarch2013.Stephenpreviouslyledthefinancialservicesdivisionataregional Building Society and holds the Chartered Wealth Manager and Chartered Alternative Investment Analyst designation.

The Board of the Company has been restructured with the appointment of three new ExecutiveDirectors,DavidNicol–ChiefExecutive,AndrewWestenberger–FinanceDirector andStephenFord–HeadofInvestmentManagementwhohavejoinedfellow ExecutiveDirector,MichaelWilliams.

Directors and their biographies


Michael John Ross Williams, FCSI Executive Director

MichaelWilliamsjoinedBrewinDolphin&Co.in1968andbecameapartnerin1978.Hehas consistentlybeeninvolvedinportfoliomanagement.HejoinedtheBrewinDolphinHoldingsBoard onincorporationin1987.

Francis Edward (Jock) Worsley, OBE, FCA (a)*(n)(r)rk) Senior Independent Director

JockWorsleyisacharteredaccountant.HewasappointedtotheBoardinSeptember2003.HewasafounderoftheFinancialTrainingCompanyanditsExecutiveChairmanfrom1972until1993.HehasbeenPresidentoftheInstituteofCharteredAccountantsofEnglandandWales,DeputyChairmanofLautro,amember of the Building Societies Commission and Independent Complaints Commissioner for SIB and theFSA.HewasChairmanoftheCancerResearchCampaignfrom1998untilitsmergerin2002withtheImperialCancerResearchFund.

Angela Ann Knight, CBE (a)(n)(r)*(rk)* Non-Executive Director

AngelaKnightwasaCouncillorandChiefWhiponSheffieldCityCouncilfrom1987to1992.SheenteredParliamentin1992asMPforErewashandwasEconomicSecretarytotheHMTreasurybetween1995and1997.ShewasChiefExecutiveofTheAssociationofPrivateClientInvestmentManagersandStockbrokersfromSeptember1997toDecember2006&ChiefExecutiveoftheBritishBankersAssociationfromApril2007toJuly2012.SheiscurrentlyChiefExecutiveofEnergyUKandanon-executivedirectorontheBoardofTullettPrebonPLCandaNon-ExecutivememberofTransportforLondon.AngelawasappointedasaNon-ExecutiveDirectorinJuly2007.

Sir Stephen Mark Jeffrey Lamport, KCVO (a)(n)*(r)rk) Non-Executive Director

SirStephenwasappointedasaNon-ExecutiveDirectorinMarch2007.HeservedintheDiplomaticServicefrom1974to1993.InMarch1993,hejoinedThePrinceofWales’sHouseholdasDeputyPrivateSecretaryandwasappointedPrivateSecretaryandTreasurertoThePrinceofWalesinOctober1996.FromOctober2002toDecember2007,hewasGroupDirectorforPublicPolicyandGovernmentAffairsforTheRoyalBankofScotland.InAugust2008hewasappointedReceiver-GeneralofWestminsterAbbey.HewasappointedKCVOin2002.HeisDeputyLieutenantforSurreyandsitsonanumberofBoards for charitable organisations.

(a) Member of the Audit Committee (n) Member of the Nomination Committee (r) Member of the Renumeration Committee (rk) Member of the Risk Committee * Denotes Committee Chairman

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Directors’ Report


Directors’ Report

The Directors present their report and the audited accounts for the52weekperiodended29September2013.Thecomparativefiguresareforthe52weekperiodended30 September 2012.

Review of the Business and its Future Development Accompanying this Directors’ Report are the Strategic Report, CorporateGovernanceReport,CorporateResponsibilityReport, Risk Committee Report, Audit Committee Report and Directors’ Remuneration Report. These reports form part of the front half of the Annual Report.

A review of the business and its future development is set out in the Strategic Report. A description of the principal risks and uncertainties is given on page 27 of the Strategic Report.

Cautionary StatementThereviewofthebusinessanditsFutureDevelopmentin the Annual Report has been prepared solely to provide additionalinformationtoshareholderstoassesstheGroup’sstrategies and the potential for these strategies to succeed. It should not be relied on by any other party for any other purpose. The review contains forward looking statements which are made by the Directors in good faith based on information available to them up to the time of the approval of these reports and should be treated with caution due to inherent uncertainties associated with such statements. The Directors, in preparing this Strategic Report, have complied with s417 of the Companies Act 2006.

Results and DividendsTheresultsoftheGrouparesetoutindetailonpage70. The Company paid a final dividend and an interim dividend during the period, as detailed in note 14 to the financial statements.Afinaldividendof5.05penceperordinaryshareisproposedandifapproved,willbepayableon28March2014 to shareholders on the register at close of business on 28February2014.

Capital StructureDetails of the Company’s authorised and issued share capital, together with details of the movements therein are setoutinnote28tothefinancialstatements.Thisincludesthe rights and obligations attaching to shares and restrictions on the transfer of shares. The Company has one class of ordinaryshareswhichcarrynorighttofixedincome.

There are no specific restrictions on the size of a holding nor on the transfer of shares, which are both governed by the general provisions of the Articles of Association and prevailing legislation. The Directors are not aware of any agreements between holders of the Company’s shares that may result in restrictions on the transfer of securities or on voting rights. Details of employee share schemes are set out innote30.SharesheldbyComputershare(Trustees)Limitedabstainfromvoting.UndertherulesoftheGroup’sShareIncentivePlan(“BDSIP”),sharesareheldintrustforparticipantsbyEquinitiSharePlanTrusteesLimited(the“Trustee”).VotingrightsareexercisedbytheTrusteesonreceipt of the participant’s instructions; if no such instruction isreceivedbytheTrusteesthennovoteisregistered.No

person has any special rights of control over the Company’s share capital and all issued shares are either fully or nil paid.

The Company has over the last three year period, issued a totalof7.4%ofitsissuedsharecapitalofordinarysharesinrelation to the acquisition of businesses and client relationships.

Financial Instruments and Risk ManagementDisclosures regarding financial instruments are provided within the Strategic Report and note 26 to the financial statements.Note26alsocontainsdetailsofrisksandriskmanagement.

BranchesOperations are carried out in the UK, Channel Islands and Republic of Ireland. Details of branches are set out on page 124.

DirectorsThe directors are listed on page 123. Biographies of the directors are given on pages 32 and 33.1

With regard to the appointment and replacement of directors, the Company is governed by its Articles of Association,theUKCorporateGovernanceCode2012(the“Code”),theCompaniesAct2006andrelatedlegislation.The Articles themselves may be amended by special resolution of the shareholders. The powers of directors are describedintheCorporateGovernanceReportonpage39.

Directors’ Interests in Shares and Substantial ShareholdingsThe interests of the directors in the shares of the Company aresetoutonpage59intheDirectors’RemunerationReport. The interests of substantial shareholders and directors are set out on page 121.

Directors’ IndemnitiesThe Company has made qualifying third party indemnity provisions for the benefit of its directors during the period and these remain in force at the date of this report.

Substantial ShareholdingsAs at 29 September 2013, the Company had received notificationsinaccordancewiththeFinancialConductAuthority’sDisclosureandTransparencyRule5.1.2ofthefollowinginterestsof3%ormoreinthevotingrightsofthe Company.

ShareholderDate of

notificationNumber of

voting rights

% of voting rights

NorgesBank 04/06/2013 10,244,649 3.76Kames Capital 30/04/2013 23,977,303 8.79FILInvestmentInternational

06/12/2012 12,477,394 4.57

AberforthPartners 04/04/2012 11,494,100 4.21Legal&General 28/11/2008 8,563,901 3.14

AnotificationunderDTR5.1.2wasreceivedfromRoyalLondonAssetManagementon13November2013thattheirinterestintotalvotingrightsis13,810,865(5.06%).There

1 IanDewar’sbiographyisgiveninthenoticeofAGM.1 IanDewar’sbiographyisgiveninthenoticeofAGM.

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were no other changes between the date of this report and 30 November 2013.

Annual General MeetingTheAnnualGeneralMeeting(“AGM”)willbeheldat11.30amon17February2014atTheLincolnCentre,18Lincoln’sInnFields,London,WC2A3ED.TheNoticeofMeetingwillbeposted to shareholders in January 2014.

Purchase of Own Shares AttheAnnualGeneralMeetingon22February2013shareholders approved a resolution for the Company to makepurchasesofitsownsharestoamaximumnumberof25,284,375ordinaryshares.ThisresolutionremainsvaliduntiltheconclusionofthenextAnnualGeneralMeetingin2014. As at 3 December 2013 the Directors had not used this authority.

EmployeesThe average number of persons, including directors, employedbytheGroupandtheirremuneration,issetoutinnote 7 to the financial statements.

Political Donations Nopoliticaldonationsweremadeduringtheperiod(2012:£nil).

AuditorEach of the persons who is a director at the date of approval ofthisannualreportconfirmsthat:

• so far as the director is aware, there is no relevant audit information of which the Company’s Auditor is unaware; and

• the director has taken all steps that he/she ought to have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the Company’s Auditor is aware of that information.

This confirmation is given and should be interpreted in accordancewiththeprovisionsofs418oftheCompaniesAct 2006.

DeloitteLLPhasexpresseditswillingnesstocontinueinoffice as auditor and a resolution to reappoint them will be proposedattheforthcomingAnnualGeneralMeeting.

By order of the Board Brewin Dolphin Holdings PLC – no. 2685806

Louise Meads Secretary 3 December 2013

Corporate Responsibility


As a leading UK company, we take very seriously our responsibilities as a corporate citizen. We are proud of the contribution we have made to the UK and to the local communities in which we have operated over the past 250 years.Ourprimarygoaltodayistocreateshareholdervalue, but in a responsible way which serves all stakeholders and the wider society.

We aim to manage the business responsibly and for the long-termbenefitofallstakeholders:clients,shareholders,employees, regulators, suppliers and local communities.

Corporate Citizenship Governance The Board share a strong commitment to responsible management. Our Chairman, Simon Miller is responsible for Corporate Responsibility.

Our CultureWith a rich heritage, Brewin Dolphin has developed into a modern public company, whilst retaining the values of founding members. Our key values are integrity, teamwork and client focus and these have been developed over our long history. Our cultural values underpin everything that we do and these values have been a key factor in our success as a leading discretionary wealth manager. They have allowed us to recruit and retain some of the most talented people in the industry, serve our clients in the best way and providereturnsforourshareholders.AstheGroupcontinuesonitsjourney,andaswedevelopourstrategicplans,nodoubt many changes will take place but our values will remain constant.

Governance We view sound governance as a critical component of Brewin Dolphin’s success and it remains of the highest priority. A robust operating environment and compliance and risk control culture is at the heart of how we work. We have aneffectiveandengagedBoard,withstrongnon-executivepresenceandwell-functioninggovernancecommittees.Through our compensation policies and employee profit share scheme, we seek to ensure that our values are reinforced in employee behaviour and that effective risk management is encouraged.

More information on our corporate governance can be found on page 39.

Business standards and clients Our focus on our clients drives everything that we do. Many of our clients and their families have entrusted us to look aftertheirwealthforgenerationaftergeneration–atestament to the high quality of personal service we continue to provide. Brewin Dolphin pursues business standards of thehighestexcellence,leadingtorewardingandenduringpartnerships with our clients. We take an integrated approach to protecting and growing wealth that combines ourskillsandexperienceinbothinvestmentmanagementand financial planning. We work hard to retain the trust placed in us and to continue to deliver a high quality service. Our aim is to be the trusted advisor of choice and we work in partnership with our clients to achieve this. We spend time

getting to know our clients so that we can do the very best for them. We are constantly striving to be better, to work harder for our clients and provide a better offering.

PeopleWe recognise that our people are our greatest assets and that to deliver on the standards we set for ourselves we need to attract, nurture and retain the best people. One of ourobjectivesistobetheemployerofchoicewithinthewealth management sector. We seek out the best available advisers in the UK, with strong client focus, professionalism and integrity.

Diversity and InclusionBrewin Dolphin is an inclusive employer and we view this as a critical component of our success. It allows us to be more creative, bring more value to our clients and to create a more enriching environment for our employees.

The Board has a strong commitment to maintaining a working environment based on equality and diversity. All employment decisions are made irrespective of colour, race, age,nationality,ethnicornationalorigin,sex,mentalorphysicaldisabilities,maritalstatusorsexualpreference.Foremployees who may have a disability, the firm ensures where possible that procedures and equipment are in place to aid them.Forthepurposesoftraining,careerdevelopmentandpromotion, all employees are treated equally. Applications for employment by disabled persons are always fully considered, with regard to the aptitude of the applicant concerned. In the event of employees becoming disabled, every effort is made to ensure that their employment within the firm continues and that appropriate training is arranged, with suitable equipment supplied in order that they can continue in their role. It is the policy of the firm that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

At the end of September 2013, the overall female ratio for theGroupwas45%,withafemaleseniormanagerratioof14%.TheBoardhascommittedtoadiversitytargetof25%for the Board and is considering ways in which this can best be achieved.

People DevelopmentBrewinDolphinisameritocracy–werecognisehardwork,behaviour aligned to our values and a commitment to the firm,itsobjectivesanditsclients.Wesupporttheadvanceddevelopment of our emerging leaders and invest heavily in employees. Our development opportunities take place both in the classroom and in the workplace. Brewin Dolphin’s training and development programmes centre around creating leaders able to provide the best possible service for our clients and this is done through managing and developingourtalent.TheBrewinDolphinGraduateTraineeSchemeandtheworkexperienceschemecontinuetoprovide a structured and wide ranging programme for new entrants to wealth management. Through this programme we contribute to local economies through offering opportunitiesforworkexperience.

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Employee Engagement Deliveringonourobjectivesrequiresemployeestobeengaged and play an active role in achieving the firm’s objectives.TothisendtheBoardseekstoensurethatallemployees are aware of and are consulted upon desired behaviours and financial and economic factors affecting the performance of the company.

We empower employees through regular communications which outline the direction of the firm, its strategy and financial performance. We view this as a critical component of our employee engagement programme as it enables engagement in the firm’s vision and strategy. We consult employees on matters that affect their interests and encouragetheinvolvementofemployeesintheGroup’sperformance through the discretionary bonus scheme.

Health and SafetyWe view our business as a community to which our employees belong. We work hard to ensure that the working environment is safe and conducive to healthy and happy employees who are able to balance work and family commitments.TheGrouphasaHealthandSafetyatWorkpolicywhichisreviewedannuallybytheBoard.TheGroupBoardExecutiveDirectorresponsibleforhealthandsafetyisDavidNicol.

TheGroupiscommittedtothehealthandsafetyofitsemployees,clients,sub-contractorsandotherswhomaybeaffectedbyourworkactivities.TheGroupevaluatestherisksto health and safety in the business and manages this throughaneffectiveHealthandSafetyManagementSystem.

TheGroupprovidesnecessaryinformation,instruction,training and supervision to ensure that employees are able to dischargetheirdutieseffectively.TheHealthandSafetyManagementSystemusedbytheGroupensurescompliance with all applicable legal and regulatory requirements and internal standards and seeks by continuous improvement, to develop health and safety performance.

Communities Brewin Dolphin is committed to the communities in which it operates and encourages its employees to participate in local initiatives. We take an active role in contributing to local communities and our efforts range from local sponsorships andvolunteering,toofferingworkexperienceschemes.Employees also take great pride in the impact they make to their local communities and regularly demonstrate a passion for making a difference.

Brewin Dolphin FoundationInrecognitionofBrewinDolphin’s250thanniversary,theBrewinDolphinFoundationwasborn.ThefundamentalaimoftheFoundationistoincreasethepositivecontributionwemake to the world outside Brewin Dolphin. Staff are able to applytotheFoundationforgrantsforsmallcharitiesthatsupport the local community. In the first year we have seen good levels of applications to the grant making scheme and look forward to increasing our grant making levels in the coming year.

FundraisingBoth on an individual and team level, in the last financial year, BrewinDolphinstaffraisedover£100,000fortheirchosencauses which the Company further supplemented in fundraising matching. These included climbing mountains, organising charity football tournaments, cake sales, long distance bike rides, marathons, bake offs, and quadrathlons, for charities such as Leukaemia and Lymphoma Research, MacmillanCancerSupport,ChildrenFirst,CancerResearchUKandFriendsofANCHOR(AberdeenRoyalInfirmary).

Many individual offices have also nominated charity partners, and their annual fundraising efforts have included supporting localhospices,ExeterRoyalAcademyforDeafEducation,DevonAirAmbulance,NinewellsCancerCampaign,ThePrince’sTrust,WarningZone,WalkonWalesandTheLaura Centre.

Payroll GivingWe offer the opportunity for employees to participate in payroll giving. In the first year of the Brewin Dolphin Foundation,wereceivedthePayrollGivingBronzeaward,awardedbytheInstituteofFundraising,inrecognitionoftheGroup’scommitmenttopayrollgiving.

Volunteering and EducationIn the past year we have supported local school children in conjunctionwithEnablingEnterprisesandCareersAcademies and we are proud to help provide bursaries for underprivileged children at the Reeds School in Surrey. Many of our employees volunteer to organisations of their choice across the country.

Corporate Responsibility (continued)


Local sponsorships and community supportWe are actively involved in our local communities and are proud to support many local causes. We have been a long-termsupporterofDurhamCountyCricketteamandtheArundelandCheltenhamCricketFestivals.Forthesecondyear running we sponsored the Big Bike Ride, a 400 mile cyclefromDurhamtoLordsinaidofthePCABenevolentFundandtheTomMaynardTrust.Wealsosupportnumerous other local events such as the Scottish Schools Rugby Tournament, Marlborough Jazz and Literature Festivals,IlkelyLiteratureFestival,TauntonFlowerFestival,NewForestShow,MoyHighlandFieldSportsFair,theChalkeValleyHistoryFestivalandtheBordersBookFestival.

BrewinDolphinBirminghamhostedafive-a-sidefootballtournament for 12 local businesses in aid of Leukaemia and LymphomaResearch(LLR).

BrewinRoulersatthefinishlineinParis

Environmental Sustainability Brewin Dolphin has a firm commitment to reducing its environmental impact and managing the business in a sustainable way. The Board has reviewed areas where there may be environmental risk from direct actions by the firm and we encourage employees and suppliers to take actions toreducetheirenvironmentalimpact.TheGroup’senvironmental policy is published on our website www.brewin.co.uk.Fulldisclosuresconcerninggreenhousegasemissions for its 2014 financial year end, as required by The CompaniesAct2006(StrategicReportandDirectors’Report)Regulations2013,willbeincludedinnextyear’sAnnual Report.

TheGroup’smajorsuppliersmainlyprovidemarketdataandcomputerhardwareandsoftware.Ourexternalconsultantswith whom we work seek to minimise our computer footprint through virtualisation or consolidation of services wherever possible. Replacement of equipment is in accordance with this policy. Obsolete computer equipment is passed to Euro Recycling who provide a fully compliant WEEE service which adheres to the EU Waste Electrical and Electronic Equipment Directive(WEEEDirective).TheWEEEDirectiveaimstominimise the impact of waste electrical and electronic goods ontheenvironment,byincreasingre-useandrecyclingandreducing the amount of WEEE going to landfill.

Travel Brewin Dolphin utilises virtual communications wherever possible to reduce our carbon footprint and measures to reduce travel are encouraged. The impact of the travel undertaken by our employees in the course of their duties is shown in the following table. CO2emissionsforthe52weekperiod to 29 September 2013 are outlined below.1

EmissionsTonnes

CO2e

Air 247Rail 213Road 765

1,226

1 The data has been collected for all our branches, and calculated in accordance with the guidelinessetoutinDEFRAGuidanceonHowtoReportGHGEmissions.

Paper and materialsThemajorityofourpaperusedisfromsustainablesourcesandisproducedinaccordancewiththeForestStewardshipCouncil and, where possible, the materials used are made upof50%recycledand50%virginwoodfibreforourreports, client reports, letterhead and marketing materials. The Company makes every effort to improve its environmental footprint through the encouraged use of double sided printing, electronic communication, both to and from its clients, and internally by the widespread use of the intranet and email communication. Recycling of paper, toners and printer cartridges is encouraged across the Group.Throughitsconfidentialpaperrecyclingprogramme,theGrouphasrecycledover383,000kgsduringtheperiod,whichistheequivalentofsaving6,517treesand959cubicmetres of landfill.

Corporate Governance

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Compliance with the Code The Directors are committed to a high standard of corporate governance and to compliance with the best practice provisionsoftheUKCorporateGovernanceCode(“theCode”),whichwasissuedbytheFinancialReportingCouncilin 2010 and revised in September 2012. The following statement, the Directors’ Remuneration Report, the Audit Committee Report, the Risk Committee Report and the StrategicReportexplainhowtheprovisionssetoutintheCodehavebeenappliedbytheGroupanddetailthe Group’scompliancewiththeprovisionsoftheCodefortheyear. The Directors consider that the Company has been in compliance with the provisions set out in the Code throughoutthe52weeksended29September2013,exceptforthefollowingcircumstances:

• Therequirementunderthecode(B.1.2)foratleasthalftheBoard,excludingtheChairman,tocompriseNon-ExecutiveDirectorswasnotmetduringtheyear.The Company is compliant with this provision since the appointmentofIanDewaron15November2013.Fordetails of the position before this appointment, see belowsection‘TheBoard’.

• Indesigningschemesofperformance-relatedremuneration, the remuneration of Directors fully complies with the provisions in Section D to the Code, saveforMichaelWilliams,ExecutiveDirectorwhichdoesnot fully comply with Section D.1.1 and Schedule A of the Code. Michael Williams’ profit share participation is determined by reference to his own team’s investment management performance in line with other investment managerswithintheGroup.Onethirdofbonusabove£50,000iscompulsorilydeferredintoshares.

The BoardAt 29 September 2013 the Board had eight members, comprisingtheChairman,fourExecutiveDirectorsandthreeNon-ExecutiveDirectors.DavidMcCorkellresignedasaDirector with effect from 22 October 2012. Jamie Matheson, HenryAlgeo,SarahSoar,BenSpekeandBarryHowardresigned as Directors with effect from 21 March 2013 and StephenFordwasappointedonthesamedate.IanDewarwasappointedasaNon-ExecutiveDirectoron15November2013. Jock Worsley, currently the Senior Independent Director, has stated his intention to retire from the Board at the2014AGM.AngelaKnightwillbenominatedasSeniorIndependentDirectorfollowingJock’sretirementinFebruary2014. Biographies of all the current directors are presented on pages 32 and 33. Biographies of the recently appointed Non-ExecutiveDirector,IanDewar,willbeincludedinthenoticeoftheAGM.EachoftheNon-ExecutiveDirectorsisconsidered by the Board to be independent, notwithstanding thefactthatJockWorsleyhasservedinexcessofnineyearsontheBoard.Thenon-executivedirectorsprovideastrong,independent element on the Board and are well placed to constructively challenge and scrutinise the performance of management. They bring robust opinions, knowledge and skill to Board discussions. The Board has considered Jock Worsely’s independence in light of the length of his appointment and is in no doubt that his thinking and

decision making process and the rigorous level of challenge provided by him evidence that he remains independent in characterandjudgement.

Details of attendance of the individual members of the Board at its meetings during the year is shown in the table below.

Maximumpossible

attendance Total

S Miller 14 14DNicol 14 14J Worsley 14 13SFord1 8 7A Knight 14 14S Lamport 14 11A Westenberger2 11 11M Williams 14 14J Matheson3 6 6HAlgeo3 6 6I Speke3 6 6S Soar3 6 6BHoward3 6 6R Bayford4 3 3D McCorkell5 0 0

1 appointed 20/03/20132 appointed 01/01/20133 resigned 20/03/20134 resigned 31/12/20125 resigned 22/10/2012

TheChairmanandNon-ExecutiveDirectorsmeetperiodicallywithoutexecutivedirectorspresentandatleastonceayear,theSeniorIndependentDirectormeetswithNon-ExecutiveDirectors without the Chairman present.

The Board delegates primary responsibility for managing the daytodayrunningoftheGrouptotheChiefExecutive,supportedbyanExecutiveCommittee,seepage40forfurther details, but maintains a formal schedule of matters which require direct Board oversight and/or approval. This schedule is approved by the Board annually. The matters for whichapprovalisretainedbytheBoardinclude:

• SettingofGroupstrategyandlongtermobjectives;

• Annualoperatingandcapitalexpenditurebudgetsandany material changes to them;

• Changes to capital or corporate structure;

• Interim and Annual report and accounts and financial statements;

• Dividend policy and declaration of dividends;

• Majorcapitalprojects,materialcontracts,majorinvestments or disposals;

• Changes to Board composition;

• Remuneration policy and any introduction of or changes to share incentive plans;

• MajorchangeinGroupPensionScheme;

• Material litigation; and

• Directors’ and Officers’ Liability insurance.

Corporate Governance (continued)


Additionally, the Board retains direct responsibility for reviewingGroupperformanceandensuringthatasoundsystem of internal control and risk management is maintained.

In addition to the scheduled Board meetings, the Board also hasaseparatemeetingdevotedtoreviewingtheGroup’sstrategicobjectives,whichprovidesafurtheropportunityforalldirectorsandparticularlythenon-executivedirectors,toensure that the strategy is rigorously reviewed and challenged and that the processes in place for assessing its implementation are effective.

Development Appropriate training and induction is made available to newly appointed directors, taking into account any previous experiencetheymayalreadyhaveasdirectorsofapubliclimited company or otherwise. Training sessions are undertaken for the entire Board and individually as appropriate.

The Roles of the Chief Executive and ChairmanThere is a clear division of duties between the Chief ExecutiveandtheChairman,withrolesthathavebeenclearly defined in writing and are reviewed annually and agreed by the Board. This ensures that a clear balance of power and authority is present.

Board Evaluation In line with the Code, a formal evaluation of the Board and its Committees is carried out on an annual basis. In 2013, the process involved individual directors meeting with the Chairman to discuss an agreed list of topics designed to coverallkeyareasofBoardeffectiveness.Anon-attributablesummary of the comments and recommendations were discussed and reviewed by the Board. The discussions related to the performance and structure of the current Board, i.e. since 21 March 2013. There were no material areas of concern highlighted though some areas for improvement were identified and the Board agreed appropriate actions to address these areas. Overall, the evaluation process confirmed that the Board was operating effectively within a culture that allowed open and challenging debate and that all directors individually made valuable contributions and demonstrated commitment to the role. An externalevaluationoftheBoardwaslastconductedin2011anditistheBoard’sintentionthatanexternalfacilitatorwillbeusednextyear.

Appointment of DirectorsThe Company’s Articles of Association, the Companies Act 2006 and other applicable regulations and policies govern the appointment of the directors. The directors’ service agreementsorlettersofappointment(asapplicable)areavailable for viewing via the Company Secretary. Directors may be elected by shareholders in a general meeting or appointed by the Board of directors in accordance with the provisions of the Articles of Association. In accordance with theCodealldirectorswillbesubjecttoannualre-electionattheAnnualGeneralMeeting.

After due consideration, the Chairman confirms that all directors continue to perform effectively and demonstrate commitment to the role and recommends that all directors bere-electedbyshareholders,withtheexceptionofJockWorsleywhoretiresatthe2014AGM.Thebiographicaldetails of the Directors’ can be found on pages 32 and 33. Ian Dewar has been appointed by the Board after the year endandaresolutionforhisre-appointmentwillbeincludedinthenoticeofAGM,alongwithbiographicaldetails.

Directors’ Conflicts of InterestThe Board has a policy and effective procedures for managing and, where appropriate, approving conflicts or potential conflicts of interest. It is a recurring agenda item at all Board meetings and gives each Director the opportunity to raise any conflict of interest they may have, or to update the Board on any change to a previous conflict of interest already lodged. A Register of Conflicts is held by the Company Secretary and a log of all conflicts raised is maintained and updated accordingly. All Directors are aware that it is their responsibility to raise and update any conflicts of interest they may have.

Committees of the BoardThe Board had five standing committees at the end of the year:theNominationCommittee,RemunerationCommittee,AuditCommittee,RiskCommitteeandtheExecutiveCommittee. These Committees have written terms of reference, which are reviewed regularly and any amendments approved by the Board. Minutes of all Board Committee meetings are reviewed by the Board. Membership of the Committees is as set out on pages 41 to 42. The terms of reference of the Committees can be viewed on the Company’s website, together with Committee membership.

All the Committees are able to call on independent professional advisers if they consider it necessary.

Executive CommitteeTheCommitteecomprisesthefourExecutiveDirectorsplustheHeadofHumanResources,theHeadofRiskandRegulation and the Chief Administration Officer. The role of theExecutiveCommitteeistomanagethedaytodayrunningoftheGroup,includingthedevelopmentandimplementation of strategy, the monitoring of operating and financial performance, the prioritisation and allocation of resources and the assessment and control of risk.

Nomination CommitteeComposition and ResponsibilitiesTheCommitteecomprisesSirStephenLamport(Chairman),JockWorsley,AngelaKnight,SimonMillerandDavidNicol.The Committee is responsible for reviewing the composition of the Board and Board Committees to ensure they are properly constituted and balanced in terms of skills, experienceanddiversity.

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Inadditiontothis,it:

• manages the search process for new directors;

• recommends to the Board the appointment of new directors; and

• considers succession plans for the Board and other senior roles.

Main activities of the Committee during the yearDuringtheyear,theNominationCommitteemetsixtimes,toconsidertheappointmentofanewChiefExecutiveandtwoNon-ExecutiveDirectorsinadditiontoitsregularreviewofBoard composition and succession plans. The process for Board appointments is for the Committee to prepare a role specification following an evaluation of the requirements of a specificrole,suchasthatoftheChiefExecutive,orofthegeneralbalanceofskillsandexperienceontheBoardinthecaseofnon-executiveappointments.TheCommitteethenappointsindependentexternalsearchconsultantstoidentifysuitablecandidates,conductsinterviewsofshort-listedcandidates,andrecommendsanappointmentsubjecttoBoard approval. Recommended candidates are then interviewed by all other Board members before an appointment is made. The Board believes that appointments shouldbebasedonmerit,comparedagainstobjectivecriteria, with the ultimate aim of ensuring the Board has the rightskills,knowledgeandexperiencethatenableittodischarge its responsibilities properly. Consideration of the benefits of diversity on the Board in all its aspects, including gender, is an important part of this process. The Board has reviewed its policy on gender diversity during the year and hascommittedtoanaimthatatleast25%ofitsmemberswillbewomenbySeptember2015.Womencurrentlyrepresent12.5%oftheBoardand14%oftheExecutiveCommittee.FurtherinformationondiversitywithintheGroupcan be found on page 36.

TheCommitteeinterviewedaselectionofhead-huntersandappointedEgonZehndertoassistintherecruitmentofachiefexecutive.DavidNicolaNon-ExecutivememberoftheBoard, indicated that he would like his name to be considered. With immediate effect he took no further part in theselectionprocess.HewasinterviewedbytheCommittee,independentlyreferencedbyEgonZehnder,approvedbytheregulatorandappointedasChiefExecutiveon 21 March 2013. Two other candidates, one internal and oneexternal,wereinterviewedforthepost.

As part of the changes to the composition of the Board made in March 2013 and the planned retirement of Jock Worsleyatthe2014AGM,theCommitteeidentifiedtheneedtoappointtwonewnon-executivedirectorstotheBoard.EgonZehnderwasappointedastheexternaladviserfor these searches and provided with role specifications prepared by the Committee. Ian Dewar was appointed as non-executivedirectoron15 November2013.Ianwillbecome the Chairman of the Audit Committee following JockWorsley’sretirementattheAGMinFebruary.Theprocessforidentifyingandappointingoneothernon-executivedirectorisinprogress.

EgonZehnderdoesnothaveanyotherconnectionwiththe Company.

Simon Miller, previously Deputy Chairman, was appointed as Chairman on 21 March 2013, in accordance with the Board’s succession planning.

A table detailing the attendance of the individual members of thecommitteeduringtheyearisshownbelow:

Maximum number of meetings

Number of meetings attended

SLamport(Chairman) 6 6A Knight 6 6S Miller 6 5DNicol 6 6J Worsley 6 6J Matheson1 2 1

1 resigned 20/03/2013

Remuneration CommitteeThe Remuneration Committee is chaired by Angela Knight (since21March2013)andtheothermembersareJockWorsleyandSirStephenLamport.Furtherinformationonthe work of the Remuneration Committee can be found in its report on page 49.

A table detailing the attendance of the individual members of theCommitteeduringtheyearisshownbelow:



A Knight1(Chairman) 12 12S Lamport 12 11S Miller2 12 12J Worsley3 9 9

1 appointed Chairman 20/03/20132 resigned as Chairman 20/03/20133 resigned 01/01/2013 and appointed 20/03/2013

Audit CommitteeThe members of the Audit Committee are Jock Worsley (Chairman),AngelaKnightandSirStephenLamport(from21 March2013).JackWorsleyhasnotifiedhisintentionnottostandforre-electionatthe2014AGMandIanDewarwillbecomeChairmanoftheAuditCommitteeaftertheAGM.Details of meeting attendance of the individual members of theCommitteeduringtheyearareshownbelow:



JWorsley(Chairman)1 10 10A Knight 10 9S Lamport2 5 5S Miller3 5 4DNicol4 5 5

1 appointed Chairman 20/03/20132 appointed 20/03/20133 resigned 20/03/20134 appointed Chairman 01/01/2013 and resigned from Committee 20/03/2013

Corporate Governance (continued)


A separate Audit Committee Report is set out on page 46 and provides details of the role, composition, responsibilities of the Committee and its relationship with internal and externalauditors.

Board Risk Committee The members of the Risk Committee are Angela Knight (Chairman),JockWorsley,SirStephenLamport(from21 March2013)andtheGroupHeadofRiskandRegulation.FurtherinformationisgivenintheRiskCommitteeReportonpage 44.

Details of meeting attendance of the individual members of thecommitteeduringtheyearareshownbelow:



A Knight1(Chairman) 5 5S Lamport2 3 3J Worsley 5 5S Miller3 2 2DNicol4 1 1HeadofRegulationandRisk 5 5

1 appointed Chairman 01/01/20132 appointed 20/03/20133 resigned 20/03/20134 appointed 01/01/2013 and resigned 20/03/2013

Internal Control and Risk ManagementThe Board undertakes a full review of all aspects of the Group’sbusinesstoidentifythemainriskstothebusinessand the key controls to counter those risks. The Board recognises that its risk management strategy is essential for achieving good business governance to protect stakeholders and enhance shareholder value. The Board has adopted a risk-basedapproachtoestablishasystemofinternalcontrol. It reviews its effectiveness periodically, by receiving ongoing reports on internal control from the Audit Committee and the Board Risk Committee.

AnexplanationoftheGroup’sRiskframeworkisgivenintheRiskCommitteereportonpage45.

Business Continuity Management is embedded within the business and is reviewed and tested periodically. The Board recognises the potential operational and financial losses associated with a service interruption and the importance of maintaining viable business resilience strategies.

The Directors are responsible for the system of internal controlestablishedbytheGroup,reviewingitseffectivenessand reporting to the shareholders that they have done so.

Theyreportasfollows:

i)Thereisanongoingprocessforidentifying,evaluatingandmanagingthesignificantrisksfacedbytheGroupasoutlined above. This has been in place for the period under review and up to the date of approval of the annual report and accounts. It is regularly reviewed by the Board and accords with the revised Turnbull guidance in the Code. Any system of internal control is designed to highlight and manage rather than to eliminate the risk of failure to achieve businessobjectives,andcanprovideonlyreasonable,andnot absolute, assurance against material misstatement or loss.TheBoardhasimplementedthe‘ThreeLinesofDefence’ model to ensure a robust and effective framework to manage internal controls and risks across the organisation. It facilitates the decision making process while providing effective governance around risk management and assurance.

ii)Financialresults,keyoperatingstatisticsandcontrolsarereported to the Board regularly, and variances are followed up. Regular reports are received from the Risk & Compliance and Internal Audit functions.

iii)TheDirectorshavereviewedtheGroup’ssystemofinternal controls and compliance monitoring and believe that these provide assurance that problems have been identified on a timely basis and dealt with appropriately throughout the period under review and up to the date of approval of the annual report and accounts. Both the Audit Committee and the Board Risk Committee assist the Board in discharging its review responsibilities.

iv)Thereisawhistleblowingpolicydetailingtheinternalorexternalproceduresthroughwhichemployeesareabletoraise any concerns.

Company SecretaryThe Company Secretary is responsible for advising the BoardonallCorporateGovernancemattersaswellasensuring good information flows within the Board and its Committees. All Directors have access to the services of the Company Secretary and may take, if necessary, independent,professionaladviceattheCompany’sexpense.

InsuranceThe Company maintains appropriate insurance cover in respect of litigation against the Directors.

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Relationship with ShareholdersThe Company places a great deal of importance on communication with shareholders and aims to keep shareholders informed by regular communication. The Chairman,ChiefExecutive,FinanceDirectorandHeadofInvestmentManagementmeetregularlywiththeGroup’sinstitutional investors, analysts and financial press. Annual and Interim reports are distributed to other parties who may haveaninterestintheGroup’sperformanceandtheGroup’swebsiteiskeptup-to-datecoveringallcorporateactivity.TheBoard is provided with regular feedback following meetings with shareholders. The Company recognises the importance of ensuring effective communication with all of its shareholders. The Company welcomes all shareholders to its AGM,withtheopportunitytoaskquestionsformallyatthemeeting or more informally with all members of the Board afterwards. The Company’s policy is to announce the numberofproxyvotescastonresolutionsattheAGM.Forshareholders who are clients of Brewin Dolphin Limited and who hold their shares in one of our nominee accounts, we provideanon-linevotingserviceontheGroupwebsiteforshareholderstovotebeforeourAGM.

Model CodeThe Company has its own internal dealing rules which extendtheFCAListingRulesModelCodeprovisionstoallemployees.

Louise Meads Company Secretary 3 December 2013

Risk Committee Report


Board Risk Committee Chairman’s Statement Assessing, quantifying and controlling risks is a vital ingredient of good governance for all companies. In financial services, risk and risk management is of particular importance. The Company has been reviewing and changing a number of aspects of its operation as set out elsewhere in this report and as part of this process, we have been making considerableenhancementstotheGroup’sriskmanagement during the year. The risk register has been redesignedtocategoriseriskexposuresmoreeasilyandtouse a common framework for historical loss, risk appetite and the assessment of risk profile.

Furtherimprovementswillbemadein2013/14bycreatingaclearer framework for aligning key risk indicators with the Board’s appetite for risk and harmonising risk assessment methodology for operational and regulatory risks. Taken together, this will strengthen clarity and consistency across all types of operational risk.

The Committee has remained closely interested in the developmentoftheGroup’sinvestmentprocesses.WeseethisasakeypartoftheGroup-wideinitiativetoremainintheforefrontofefficiencyandstandardsthatunderpinexcellenceof service and assurance that all our clients are treated fairly and receive suitable advice.

This report sets out a summary of the Committee’s work across the last year and will be building on these issues in the year ahead.

Committee membersTheBoardRiskCommittee(“theCommittee”)ischairedbyAngelaKnightandcomprisesthreeindependentNon-ExecutiveDirectors(AngelaKnight,SirStephenLamportandJockWorsley)plustheGroupHeadofRiskandRegulation.OtherexecutivessuchastheChiefExecutive,FinanceDirector,HeadofInvestmentManagementandrepresentativesfrominternalandexternalauditareinvitedtoattend meetings where appropriate.

Role and responsibilities of the Board Risk Committee The Committee was formed in October 2011 in recognition oftheincreasingimportanceandcomplexityofrisk.Ithasassumed the responsibilities in relation to risk that were previously under the remit of the Audit Committee. The Committee has oversight of the risk management framework oftheGroupandspecificallytheeffectivenessofriskmanagement, governance and regulation activity within the Group.TheCommitteesupportstheBoardinitsconsiderationofthebusinessactivitiesthatexposethebusinesstomaterialrisks,takingintoaccountforward-lookingaspectsofriskexposure.TheCommitteeadvisestheBoard on the considerations and process for setting the Risk Appetite and related tolerances. The Board retains responsibility for approval of the Risk Appetite. The terms of reference are reviewed annually by the Committee and are then referred to the Board for approval.

TheCommitteeisresponsibleforreviewing:

• thealignmentoftheGroup’sstrategytotheriskappetite, tolerance and policy of the Board;

• thequalityoftheGroupoperatingstructureasamitigationandkeycontroltoGroup-widerisks;

• the quality and timeliness of the Company’s overall risk assessment processes that inform the Board’s decision making;

• the Company’s capability to identify and manage new risk types and the overall adequacy of stress testing;

• reports detailing any material breaches of risk limits and the adequacy of proposed action;

• the adequacy and effectiveness of the Company’s risk management systems including procedures for the identification, assessment and reporting of risks and reviewing and approving the statements to be included in the annual report concerning risk management; and

• the remit of the risk management function and ensuring it has adequate resources and appropriate access to information to enable it to perform its function effectively and in accordance with the relevant professional standards. The Committee also ensures the function has adequate independence.

The Committee reports on its proceedings to the Board and on any appropriate matters to the Audit Committee, identifying any issues it considers where action or improvement is needed and making recommendations on the steps to be taken. The Board Risk Committee works closely with the Audit Committee in ensuring that all aspects oftheGroup’srisksareconsidered.

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AtanexecutiveleveltheRiskManagementCommitteemeets quarterly to review risk and compliance management information and progress mitigation initiatives. The Risk ManagementCommitteeischairedbytheHeadofRiskandRegulationandincludestheChiefExecutive,HeadofInvestmentManagement,theHeadofDealing,theFinanceDirector and heads of key support functions. Operational and regulatory risk issues are a standing agenda item for the Committee which acts as an escalation point for issues arisingfrominternal,externalandregulatoryaudits.TheRiskManagement Committee is supported by the Risk and Controls Committee which provides a forum for reviewing operational risks and controls. The current framework of the RiskCommitteesisshownbelow:

Risk & Controls Committee

Risk Management Committee

Executive Committee

Brewin Dolphin Holdings PLC and Brewin Dolphin Limited

Boards

Board Risk Committee

Reporting line

Additional reporting line

Overview of the work undertaken by the Committee during the yearThe number of meetings and attendance for the year are on page42oftheCorporateGovernanceReport.TheBoardRisk Committee discharged its responsibilities as set out in its terms of reference by undertaking the following work duringtheyear:

• reviewingregularreportsfromtheGroupHeadofRiskand Regulation and evaluating the effectiveness of the Group’sRiskandRegulationdepartment;

• receivingregularreportsfromtheGroup’sRiskManagement Committee;

• reviewing the high level risk register;

• considering emerging risks faced by the business;

• considering the output from the process used to identify, evaluate and mitigate risks;

• reviewingtheGroup’sICAAP,inconjunctionwiththeAudit Committee;

• reviewing the risk committee framework and terms of reference of each committee; and

• considering and reviewing the Board’s Risk Appetite.

Risks and uncertaintiesThe principal risks to the business are assessed and reviewedbytheRiskManagementCommitteeandExecutiveCommittee and subsequently submitted to the Board Risk Committee for recommendation to the Board. The principal risks are formally approved by the Board twice a year.

TheGroup’sriskmanagementpoliciesandproceduresaresetoutintheCorporateGovernanceReport.FurtherdiscussionoftheGroup’sexposurestofinancialrisksareincluded in note 26 to the financial statements.

TheGroup’sprincipalrisksarecategorisedasstrategic,business, operational and financial. It is recognised that reputation risk is an important consequential impact and this hasbeenidentifiedasabusinessrisk.TheGrouphasdeployed a range of preventative and detective controls which together with risk transfer through insurance mitigate its risks. These are kept under regular review to ensure that theGroupmanagesitsriskprofilewithinitsappetiteandcapacity for risk.

AdescriptionoftheGroup’sprincipalrisksanduncertainties,together with the key mitigants and controls are set out in the Strategic Report on page 27.

Angela Knight Chairman of the Risk Committee 3 December 2013

Audit Committee Report


Audit Committee Chairman’s Statement The Committee met 10 times during 2012/13. Much of its time was spent on regular activities as set out in this report. In addition to these matters, the Committee’s areas of focus included the new systems programme, the Company’s information security framework and compliance with the Retail Distribution Review. The Committee reviewed reports from Internal Audit on a wide range of issues, including management responses and agreed actions. These, with Cyber Threat, will continue to be the areas of focus for 2013/2014.

Committee members The current members of the Audit Committee are the independentNon-ExecutiveDirectorsJockWorsley(Chairman),AngelaKnightandSirStephenLamport.ThecompositionoftheCommitteeisreviewedbytheNominationCommittee which makes recommendations for change to the Board as appropriate.

Jock Worsley has acted as Chairman of the Audit Committeesince1October2003,withtheexceptionoftheperiod1 January2013to21March2013whenDavidNicolwas appointed as Chairman of the Committee. David resigned from the Committee upon his appointment as Chief Executiveon21 March2013andJockWorsleyresumedhisposition as Chairman of the Committee on that date, whilst a newnon-executivedirectorwiththerequisiteskillsandexperiencewassought.AngelaKnightwasamemberoftheCommittee throughout the period and Sir Stephen Lamport was appointed to the Committee on 21 March 2013. Ian DewarwasappointedasaNon-ExecutiveDirectoron15 November2013andwillbecomeChairmanoftheAuditCommitteefollowingJock’sretirementattheAGMinFebruary2014.

The Board is satisfied that at least one member of the Committeehasrecentandrelevantfinancialexperience.Jock Worsley is a qualified Chartered Accountant and the other members of the Committee are financially literate. The GroupprovidesaninductionprogrammefornewAuditCommittee members and ongoing training to enable the committee members to carry out their duties.

Role and responsibilities of the Audit CommitteeThe Audit Committee is a formally constituted Committee of the Board whose terms of reference include all matters indicated by Disclosure and Transparency Rule 7.1 and the UKCorporateGovernanceCode(“theCode”).Thetermsofreference are considered annually by the Audit Committee and subsequently referred to the Board for approval.

TheAuditCommitteeisresponsiblefor:

• monitoring the integrity of the financial statements of the GroupandanyformalannouncementrelatingtotheGroup’sfinancialperformanceandreviewingsignificantfinancialreportingjudgementscontainedtherein,priortotheir submission to the Board;

• reviewingtheGroup’sinternalfinancialcontrolsandtheGroup’sinternalcontrolsystems;

• monitoringtheworkoftheGroup’sInternalAuditfunction and reviewing its effectiveness;

• reviewingregularreportsfromtheHeadofComplianceand keeping under review the adequacy and effectivenessoftheGroup’sCompliancefunction;

• reviewingtheGroup’sproceduresforhandlingallegations from whistleblowers and for detecting fraud;

• making recommendations to the Board on the appointmentorreappointmentoftheexternalauditorand on the approval of their remuneration and terms of engagement;

• reviewingandmonitoringtheexternalauditors’independenceandobjectivityandtheeffectivenessofthe audit process; and

• maintaining and reviewing the policy on the engagement oftheexternalauditorstosupplynon-auditservices,taking into account relevant guidance regarding the provisionofnon-auditservicesbytheexternalauditfirm.

The Audit Committee is required to report its findings to the Board, identifying any matters in respect of which it considers that action or improvement is needed, and making recommendations on the steps to be taken.

MeetingsThe Audit Committee maintains a formal schedule of items that are to be considered at each committee meeting and within the annual audit cycle, to ensure that its work is in line with the requirements of the Code and all areas of its remit are addressed. The items to be reviewed are agreed by the Audit Committee Chairman on behalf of his fellow members. Each member has the right to require reports on additional matters of interest.

TheChiefExecutive,FinanceDirector,HeadofInvestmentManagement,HeadofRiskandRegulationandHeadofInternal Audit, normally attend Audit Committee meetings. At the Committee’s request, other senior management are invited to present reports as relevant to enable the Committeetodischargeitsdutiesandtheexternalauditorsattend a number of meetings.

The number of meetings and attendance for the year are on page41oftheCorporateGovernanceReport.

Overview of the work undertaken by the Committee during the year During the year, the Audit Committee discharged its responsibilities as set out in its terms of reference, through undertakingthefollowingactivities:

• reviewoftheAnnualReportandFinancialStatements,half-yearlyFinancialReportandInterimManagementStatements. In doing so, the Committee received reportsfromtheexternalauditorsontheirauditoftheAnnualReportandFinancialStatementsandreviewofthehalf-yearlyFinancialReport.Furtherexplanationofthe significant issues that the committee considered in relation to the financial statements and how these were addressed is set out below;

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• reviewoftheeffectivenessoftheexternalauditprocess,theexternalauditors’strategyandplanfortheauditandthequalifications,expertise,resourcesandindependenceoftheexternalauditors;

• considerationoftheappropriatetimingforanexternaltender of audit services;

• review and approval of the Internal Audit annual plan, review of reports from Internal Audit including management responses to the findings of the reports and their proposals. Satisfactory completion of management undertakings arising from these reports is monitored;

• evaluation of the effectiveness of Internal Audit;

• review of the Company’s procedures for handling allegations from whistleblowers and for detecting fraud;

• considerationofregularreportsfromtheGroup’sHeadof Compliance and evaluation of the effectiveness of the Group’sComplianceandRiskfunction;

• consideration of reports on other areas of focus during the year such as the new systems programme, information security framework and compliance with the Retail Distribution Review;

• considerationofareportfromtheexternalauditorsontheir review of the effectiveness of controls across the Groupandreviewofareportonmanagementactiontaken in response to the report;

• reviewoftheeffectivenessoftheGroup’sinternalcontrols and disclosures made in the annual report and financial statements on this matter;

• review and agreement of the scope of the audit work to beundertakenbytheexternalauditorsandthefeestobepaidtotheexternalauditors;

• review of the Audit Committee’s own terms of reference; and

• review and assessment of its own effectiveness.

The Audit Committee reports its findings to the Board, identifying any matter on which it considers that action or improvement is needed and makes recommendations on the steps to be taken accordingly.

Financial reporting and significant financial judgementsThe Committee reviews whether suitable accounting policies have been adopted and whether management has made appropriateestimatesandjudgements,obtainingsupportfromtheexternalauditorsinmakingtheseassessments.

The Committee reviewed the following significant financial judgementsmadebymanagementfortheyearended29 September2013,includingconsiderationoftheexternalauditor’s view and challenges made by them during their audit,andconcludedthatthejudgementswerereasonableand appropriate:

• the value, including impairment of intangible assets –goodwill,clientrelationshipsandsoftwarewithparticular consideration being given to the carrying value of software assets being developed;

• onerous contracts provisions; provisions were made during the year primarily in respect of surplus space identifiedaspartofareviewoftheGroup’spropertyportfolio and take into account the uncertainty of future rental income;

• assumptions underlying the calculation of the pension scheme deficit;

• the appropriateness of valuation methodologies used to support the valuation of investments, particularly that of theGroup’sinvestmentinEuroclear;

• estimates of shares to be issued and deferred purchase consideration in respect of acquisitions of business or client relationships based on discounted estimates of future earnings; and

• estimates of provisions in relation to outstanding legal cases and claims.

After consideration the Committee concluded that the annual report, taken as a whole, is fair, balanced and understandable and that it provides the necessary information for shareholders to assess performance, business model and strategy.

External Auditors The Audit Committee is responsible for the development, implementationandmonitoringoftheGroup’spolicyonexternalaudit.Thepolicysetsoutinteralia,thecategoriesofanynon-auditserviceswhichtheexternalauditorswillbeallowed to undertake and provides an approval process for theprovisionofanyothernon-auditservices.Thispolicyisavailable on the Investor Relations section of the Company’s website, under the Board Committees’ subsection.

The Board generally only uses the auditors for audit and related activities. If there is a business case to use the externalauditorsfortheprovisionofnon-auditservices,priorpermission is required from the Audit Committee which will review the proposal to ensure that it will not impact the auditor’sobjectivityandindependence.Themajorityoftaxadvisoryandsimilarworkiscarriedoutbyanothermajoraccountancy firm. An analysis of auditor’s remuneration is providedinnote8tothefinancialstatements.

Aspartofitsevaluationoftheindependenceoftheexternalauditors,theAuditCommitteereviewed:

• theexternalauditor’splanforthecurrentyear,notingtherole of the senior statutory audit partner, who signs the audit report and who, in accordance with professional rules, has not held office for more than five years, and any changes in the key audit staff. The 2012/13 audit was the fifth cycle for the current audit partner and a new lead audit partner has been appointed for the 2013/14 audit;

Audit Committee Report (continued)


• thearrangementsforday-to-daymanagementoftheaudit relationship;

• areportfromtheexternalauditordescribingtheirarrangements to identify, report and manage any conflicts of interest;

• theoverallextentofnon-auditservicesprovidedbytheexternalauditor,inadditiontoitscase-by-caseapprovaloftheprovisionofnon-auditservicesbytheexternalauditors; and

• the performance of the auditor who were first appointed in April 2002 and reappointed following a review in 2007.

The Audit Committee is responsible for recommending to the Board the appointment, reappointment or removal of the externalauditor.IthasbeenthepolicyoftheBoardtoundertakeamajorreviewoftheappointmenteverysixyearsandthisreviewwasscheduledfor2013.However,itwasagreed by the Committee and the Board that the appointmentofanewFinanceDirector,newChiefExecutive,transition to a new Chairman of the Audit Committee and transition to a new lead Deloitte audit partner for 2013/14 made this timing inappropriate.

TheCommitteehasconsideredtheexistingUKCorporateGovernanceCodeprovisionforcompaniestoputtheexternalauditcontractouttotenderatleasteverytenyearsandalsotheFRC’sguidanceonaligningthetimingofsuchre-tenderswithauditengagementpartnerrotation.Ithasalso noted the recently published final decision of the Competition Commission, likely to be effective 1 October 2014, including transitional arrangements. The Committee’s currentintentionisthatitwillinitiateare-tenderingprocessbefore the end of the current audit partner’s rotation (2017/18).ThiswillbekeptunderreviewandtheCommitteewill use its regular reviews of auditor effectiveness to assess themostappropriatetimeforsuchare-tenderduringthatperiod.

The Audit Committee has considered the likelihood of a withdrawaloftheexternalauditorfromthemarketandnotedthat there are no contractual obligations to restrict the choice ofreplacementexternalauditor.

TheexternalauditormeetsprivatelywiththeAuditCommitteeatleasttwiceayearwithoutseniorexecutivemanagement being present.

Anannualreviewoftheeffectivenessoftheexternalauditoris carried out by the Audit Committee, taking into consideration:

• thearrangementsforensuringtheexternalauditors’independenceandobjectivity;

• theexternalauditorfulfilmentoftheagreedauditplan;

• the robustness and perceptiveness of the auditor in their handlingofthekeyaccountingandauditjudgements;and

• thequalityoftheexternalauditor’sreportingoninternalcontrols.

Followingtheannualreviewofeffectiveness,theAuditCommittee recommended to the Board that reappointment of the auditors be proposed to shareholders at the 2014 AGM.

Internal AuditThe Internal Audit function was conducted for the period by GrantThorntonLLP.TheAuditCommitteeassiststheBoardto fulfil its responsibilities relating to the adequacy of the resourcing and plans of the Internal Audit function. To fulfil thesedutiestheAuditCommitteereviewed:

• Internal Audit’s methodology, reporting lines and access to the Audit Committee and all members of the Board;

• Internal Audit’s plans and its achievement of the planned activity;

• the results of key audits and other significant findings, the adequacy of management’s response and the timeliness of resolution; and

• the timeliness of reporting.

OverviewAs a result of its work during the year, the Audit Committee has concluded that it has acted in accordance with its terms of reference and has ensured the independence and objectivityoftheexternalauditors.TheChairmanoftheAuditCommitteewillbeavailableattheAGMtoansweranyquestions about the work of the Committee.

Jock Worsley Chairman of the Audit Committee 3 December 2013

Directors’ Remuneration Report

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Annual statement from the Chairman of the Remuneration Committee This has been a year of change for the industry and for Brewin Dolphin and so, a comparable significant amount of activity for the Remuneration Committee. There have been a number of changes to the management team and the Committee has taken thisopportunitytodevelopanewapproachtoincentiviseremunerationforexecutivedirectors.ThisincludesaproposedLongTermIncentivePlan(LTIP)andchangestotheannualbonusforexecutivedirectors;theintroductionofanLTIPisaccompaniedbyareductioninthemaximumlevelofannualbonus.Thedetailsofbothschemesaresetoutinthisreportandwe have sought by their design to ensure that targets are clear and stretching, and tied into the Brewin Dolphin strategy of drivingorganicgrowthandachievingoperationalexcellencetoimprovequalityandlowercosts.TheCommitteeconsultedwithmajorshareholdersontheseproposedchangestoexecutiveremunerationandsubsequentlyadjustedthe2014LTIPperformance criteria and introduced an additional post vesting holding period in response to shareholders’ views.

AstheGroup’sfinancialyearendedon29September2013,itisnottechnicallyrequiredtoputthedirectors’remunerationpolicytoabindingshareholdervoteuntiltheAGMinFebruary2015.HowevertheCommitteehasdecidedthatitwouldnotberighttodelayshareholderapproval,andinsteadhaselectedtoputtheremunerationpolicytothevoteattheAGMinFebruary2014.Thismeansthatthedirectors’remunerationpolicywillbebindingontheCompanyfromthe2014AGM.Meanwhile,thesecondpartoftheremunerationreport,whichistheannualreportonremuneration,willbesubjecttoanadvisoryvoteatthe2014AGM,inaccordancewiththeregulations.

In considering the new remuneration policy, the Committee was concerned that it needed to be able to attract and retain a high calibre management that will serve the Company well. We have benchmarked against relevant competitors and the significant amount of remuneration that is related to performance will help drive the strategy forward over the short and longer term,avoidingcreatingincentivesforexcessiverisktakingwhilstmaintainingaflexiblecostbase.Lastly,theRemunerationCommitteehasintroducedadirectors’shareholdingpolicytoaligntheinterestsoftheExecutiveDirectorswithshareholders.

Directors’ Remuneration Policy – subject to binding vote by shareholders at the 2014 AGMThissectionoftheRemunerationReporthasbeenpreparedinaccordancewithPart4ofTheLargeandMedium-sizedCompaniesandGroups(AccountsandReports)(Amendment)Regulations2013.ItsetsouttheDirectors’RemunerationPolicyfortheGroup.ThePolicyhasbeendevelopedtakingintoaccounttheprinciplesoftheUKCorporateGovernanceCode,executiveremunerationguidelinesproducedbyshareholderorganisations,andtheremunerationprinciplesoftheFinancialConductAuthority’s(FCA)RemunerationCodesofarastheyapplytotheGroup.

OverviewTheCommitteedeterminestheGroup’spolicyontheremunerationoftheBoardChairman,ExecutiveDirectorsandothermembersofexecutivemanagementincludingemployeesdesignatedasCodeStaffundertheFCARemunerationCode.TheCommittee’stermsofreferenceareavailableontheGroup’swebsite.

IndeterminingtheDirectors’RemunerationPolicy,theCommitteetakesintoaccountthefollowingobjectives:

• to attract, retain and motivate talented Directors and senior management of the calibre required to manage the business successfully,whilstseekingtoavoidpayingmorethanisnecessarytomeetthisobjective;

• to motivate and reward good performance; and

• tomeetrelevantregulatoryrequirements,includingtherequirementsoftheFCARemunerationCodesofarastheseapplytotheGroup.

Themainprinciplesofthepolicyareto:

• ensurethattotalremunerationissetatalevelthatismarketcompetitivebybenchmarkingagainstrelevantexternalcomparators,takingaccountofsize,complexity,andsector,andtoensurethattheoverallpackagetakesaccountofmarket practice;

• maintainappropriateproportionsoffixedandperformance-relatedpay,tohelptodriveperformanceovertheshortandlongerterm,maintainaflexiblecostbase,andavoidcreatingincentivesforexcessiverisk-taking;

• align incentive plans with the business strategy, prudent risk management, and shareholder interests; and

• achieve consistency with the general remuneration philosophy applied to Brewin Dolphin employees as a whole.

DetailsoftheremunerationcomponentsareprovidedinFigure1–theRemunerationPolicytableforExecutiveDirectors.

Directors’ Remuneration Report (continued)


How the views of shareholders are taken into accountTheCommitteewillregularlycomparetheGroup’sDirectors’RemunerationPolicywithshareholderguidelinesandtakesaccount of the results of shareholder votes on remuneration.

IfanymaterialchangestotheRemunerationPolicyarecontemplated,theCommitteeChairmanwillconsultwithmajorshareholders about these in advance.

Details of votes cast for and against the resolution to approve last year’s remuneration report are provided in the Annual Report on Remuneration section of the Directors’ Remuneration Report.

Consideration of employment conditions elsewhere in the GroupTheGroupappliesaconsistentremunerationphilosophyforemployeesatalllevels.

FixedpaycomponentsforallemployeesarebenchmarkedagainstrelevantmarketcomparatorsandtheCommitteetakesaccountoftheaggregaterateofbasesalaryincreaseforallemployeeswhendeterminingincreasesinfixedpayforDirectors.

Allemployeesareeligibleforperformance-relatedannualbonusandtheprincipleofbonusdeferralappliestoannualbonusesforemployeeswhosebonusesexceedcertainthresholdsestablishedbytheCommittee.

TheGroupdoesnotoperateformalemployeeconsultationonremuneration.However,employeesareabletoprovidedirectfeedbackontheGroup’sremunerationpoliciestotheirlinemanagersortheHumanResourcesdepartment.TheCommitteemonitorstheeffectivenessoftheGroup’sremunerationpolicyinrecruiting,retaining,engagingandmotivatingemployees,andreceivesregularreportsonhowtheGroup’sremunerationpoliciesareviewedbyemployeesandwhethertheyaremeetingbusiness needs.

TheCommitteedoesnotseektoapplyfixedratiosbetweenthetotalremunerationlevelsofdifferentrolesintheGroup,asthiswould prevent it from recruiting and retaining the necessary talent in a highly competitive employment market.

BenchmarkingTheCommitteetakesaccountofmarketbenchmarkdatawhensettingtotalremunerationpackagesforExecutiveDirectors.ComparisonsaremadewithotherFTSE-listedcompaniesofsimilarsizeandbusinessprofiletoBrewinDolphin.Practicesinthe private client investment management sector, and other related sectors, are also considered. Benchmark data is used by theCommitteeasareferencepoint,alongsideotherfactorssuchastheindividual’sroleandexperience,andcompanyandpersonal performance, rather than as a direct determinant of pay levels.

Future policy tableFigure1summarisesthekeyaspectsoftheGroup’sRemunerationPolicyforExecutiveDirectors.

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Figure 1: Remuneration Policy table for Executive Directors

Element

Purpose and link to short and long-term strategy Operation, performance measures and periods, deferral and clawback

Maximum opportunity

Total Fixed Pay Providesaleveloffixedremunerationsufficient to recruit and retain necessary talent, and to permit a zero variable pay award should that be appropriate.

Rather than having separate base salary, pension and benefits components, ExecutiveDirectorsreceiveaTotalFixedPaysum,whichtheycanreceiveallincash,ormaychooseto‘sacrifice’partofthecashandinsteadreceivepartasadefined pension contribution and/or fringe benefits such as car benefit, private medicalinsurance,orlong-termillness/disabilityinsurance(knownas‘PermanentHealthInsurance’).InadditiontotheirTotalFixedPay,ExecutiveDirectorscanbenefitfromlifeinsuranceatalevelofsixtimesannualsalary.IndividuallevelsofTotalFixedPayarereviewedannually,withanyincreasesnormallyeffectivefrom1January,unlessthereareexceptionalreasonsforanincreaseatanothertimeofthe year. Any increases are generally targeted at around the general level of salary inflationintheGroup,butmayvaryfromthisforexceptionalreasonssuchasachange in the individual’s role or responsibilities, or a need to bring an individual’s remuneration to a market competitive level.

TotalFixedPayisbenchmarked against relevant market levels of aggregate fixedpay(ie.basesalary+pensioncontribution+benefits,paidinthemarket),and is targeted to be not more than around median of relevant comparators.

Annual variable pay

(Discretionary)

Rewards annual Groupandpersonalperformance, and, through the use of deferral into shares, also aligns reward withlonger-termperformance.

ExecutiveDirectors1 are considered each year for a discretionary annual variable payaward,whichtakesaccountofbothGroupandpersonalperformance.ThemainweightingisonGroupfinancialperformance.

Groupperformanceisassessedprimarilybyreferencetoa‘balancedscorecard’ofGroupfinancialkeyperformanceindicators(KPIs)andtargets,whichareseteachyearbytheCommitteebasedontheprioritiesfortheyear.TheKPIsmayinclude,forexample,profitbeforetaxandoperatingprofitmargin.Non-financialKPIsmayalsobeincludedinthescorecard,butnon-financialperformancehasalowerweightingthanfinancialperformance.ForeachKPI,thereisathreshold,targetand‘stretch’(i.e.excellent)performancelevel;themaximumannualvariablepayispaidfor stretch performance.

IncommonwithallotheremployeesoftheGroup,asignificantproportionofvariablepayiscompulsorilydeferredundertheDeferredProfitSharePlan(DPSP)intoBrewinDolphinHoldingsPLCordinarysharesornil-pricedoptionsovershares, which vest in one tranche, normally after three years. The deferral policy for ExecutiveDirectorsisshowninthetablebelow:

Portion of variable pay What fraction is deferred?

Portionupto£50,000 None

Portionbetween£50,000and1xfixedremuneration

One-third

Portionabove1xfixedremuneration Two-thirds

ExecutiveDirectorsmayalsovoluntarilydeferannualvariablepay,butreceivenomatching shares in return.

TheCommitteemayseektoclawbackannualvariablepayinexceptionalsituations,such as misstatement of performance, failure of risk management or serious misconduct1 Michael Williams, is an Executive Director, but, as an Investment Manager, is remunerated based on the performance of his team. His base pay is set substantially lower than other Executive Directors and his annual bonus is dependent on the profits of his Investment Management team and is not subject to a cap. One third of the portion of his bonus above £50k is deferred into Brewin Dolphin Holdings PLC shares or nil-cost options over shares which vest in one tranche, normally after three years.

Themaximumindividual award of annual variable pay is currently2xtheTotalFixedPay(exceptforMichael Williams1).

However,subjecttoobtaining shareholder approval for the proposed new long-termincentiveplan, this will reduce to1.5xTotalFixedPaywitheffectfromthe2013-14financialyear.

Long-Term Incentive Plan (LTIP)

(Discretionary)

(New for 2014, subject to shareholder approval)

Rewards achievement oflong-termperformance objectives.

ExecutiveDirectorswillbeeligibletobeconsideredeachyearforaconditionalaward over Brewin Dolphin shares, which will vest in one tranche, normally no earlierthan3 yearsfromthedateofaward.Vestingwillbesubjecttoperformanceconditions and targets set prior to each grant by the Committee. These performanceconditionswillberelatedtofinancialperformance(forexample,EPSgrowthandprofitmarginpercentage)andwillbealignedtothebusinessstrategy.Foreachperformancemetricused,therewillbeathresholdlevelofperformanceatwhichnomorethan25%oftheportionoftheawardrelatingtothatKPIwillvest,andastretchlevelofperformance,atwhich100%oftheportionoftheawardrelatingtothatKPIwillvest.

ExecutiveDirectorswillberequiredtoholdnetoftaxvestedsharesforaperiodoftwo years following vesting.

TheCommitteemayseektoclawbackLTIPinexceptionalsituations,suchasmisstatement of performance, failure of risk management or serious misconduct.

Thenormalmaximumannual award under theLTIPrulesisupto100%ofTotalFixedPay(infacevalueofsharesatgrant),but may be up to 150%inexceptionalcircumstances.



Differences in remuneration policy for Executive Directors compared to other employeesTheapproachtoremunerationfortheExecutiveDirectorsisgenerallyconsistentwiththatforemployeesacrosstheCompanyasawhole.However,therearesomedifferenceswhichtheCommitteebelievesarenecessarytoreflectthedifferentresponsibilities of employees across the Company, and the need to recruit, retain and motivate employees in a variety of roles. Forexample,belowExecutiveDirectorlevel,theportionofannualvariablepaythatisdeferredisstructureddifferentlyandiscappedatonethirdratherthanthetwo-thirdsdeferralthatappliestoExecutiveDirectors.Awardsofmarketpurchasedsharesaremadetoselectedindividualsfromtimetotime,excludingExecutiveDirectors,whichvestsubjecttocontinuedservice,torecognise individuals’ value to the Company and to create further alignment with shareholders.

External non-executive director positionsExecutivedirectorsarepermittedtoserveasnon-executivedirectorsofothercompanies,onthegroundsthatthiscanhelptobroadentheskillsandexperienceoftheDirector,providedthereisnocompetitionwiththeCompany’sbusinessactivitiesandwhere these duties do not interfere with the individual’s ability to perform his duties for the Company.

Where an outside appointment is accepted in furtherance of the Company’s business, any fees received are remitted to the Company.IftheappointmentisnotconnectedtotheCompany’sbusiness,theExecutiveDirectorisentitledtoretainanyfeesreceived.

Approach to remuneration for new Executive Director appointmentsTheremunerationpackageforanewExecutiveDirectorwouldbesetinaccordancewiththetermsandmaximumlevelsoftheGroup’sapprovedremunerationpolicyinforceatthetimeofappointment.

TheCommitteemayalsoofferadditionalcashand/orshare-basedelementswhenitconsidersthesetobeinthebestinterestsoftheGroupandshareholders,forthepurposeofreplacingawardsorpotentialforeseeableearningswhichareforgonebytheindividualonbecominganExecutiveDirector.Thisincludestheuseofawardsmadeunder9.4.2oftheListingRules. In considering any such payments the Committee would take account of the amount of remuneration foregone and the nature, vesting dates and any performance requirements attached to the remuneration foregone. Shareholders will be informed of any such payments and the rationale for these.

Foraninternalappointment,anydeferredpayelementawardedinrespectofthepriorrolemaybeallowedtopayoutaccordingtoitsterms,adjustedasrelevanttotakeintoaccounttheappointment.Inaddition,ongoingremunerationobligationsexistingpriortoappointmentmaybepermittedtocontinuewherethisisconsideredtobeinthebestinterestsoftheGroupandshareholders.

Forexternalandinternalappointments,theCompanymaymeetcertainrelocationexpensesasappropriate.

Service contracts and loss of office paymentsService contracts normally continue until the director’s agreed retirement date or such other date as the parties agree. The servicecontractscontainprovisionforearlytermination.Noticeperiodsarelimitedto6monthsbyeitherparty.

IftheemployingcompanyterminatestheemploymentofanExecutiveDirectorwithoutgivingtheperiodofnoticerequiredunderthecontract,theExecutiveDirectorwouldbeentitledtoclaimrecompenseforuptosixmonths’TotalFixedPay.

Incasesof‘goodleavers’theCommitteemayconsideradiscretionaryawardofannualvariablepay,subjecttoperformance,in respect of the portion of any financial year that the individual has been working with the Company, although not for the periodofanypaymentinlieuofnoticeor‘gardenleave’.

In the event of a change of control of the Company there is no enhancement to these terms.

Insummary,thecontractualprovisionsareasfollows:

Figure 2:

Provision Detailed terms

Noticeperiod 6 monthsTermination payment in the event of termination by the Company without due notice

TotalFixedPayinrespectoftheunexpiredperiodofcontractualnotice.

In certain cases, the Committee may also consider a discretionary award of annualvariablepay,subjecttoperformance,inrespectoftheportionofanyfinancial year that the individual has been working with the Company, although notfortheperiodofanypaymentinlieuofnoticeor‘gardenleave’

Change of control Same terms as above on termination.

Anyoutstandingshare-basedentitlementsgrantedtoanExecutiveDirectorundertheCompany’sLTIPorothershareplanswill be determined based on the relevant plan rules. The default treatment is that any outstanding awards lapse on cessation ofemployment.However,incertainprescribedcircumstances,suchasdeath,disability,redundancy,retirementorothercircumstancesatthediscretionoftheCommittee(takingintoaccounttheindividual’sperformanceandthereasonsfortheirdeparture)‘goodleaver’statuscanbeapplied.Insuchcases,thenormalpractice,unlessthereareexceptionalcircumstances,isforanyLTIPawardsheldtobepro-ratedfortheperiodoftheperformanceperiodthathasexpired,andtheperformanceconditionswouldcontinuetoapply.ShareawardsundertheDeferredProfitSharePlanwillvestinfullontheoriginal vesting schedule.

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AnExecutiveDirector’sservicecontractmaybeterminatedwithoutnoticeandwithoutanyfurtherpaymentorcompensation,exceptforsumsaccrueduptothedateoftermination,ontheoccurrenceofcertaineventssuchasgrossmisconduct.

Legacy arrangementsFortheavoidanceofdoubt,theDirectors’RemunerationPolicyincludesauthorityfortheCompanytohonouranycommitments entered into with current or former Directors that have been disclosed to shareholders in previous Remuneration Reports. Details of any payments to former directors will be set out in the implementation section of this report as they arise.

Illustrations of application of remuneration policyFigure3abelowshowstheminimum(TotalFixed)remuneration,thetargetleveloftotalremuneration(TotalFixedPay+on-targetannualvariablepay+on-targetLTIPvesting),andthemaximum(TotalFixedPay+MaximumAnnualVariablePay+MaximumLTIPvesting),foreachExecutiveDirector,excludingMichaelWilliams.MichaelWilliamsparticipatesintheGroup’sprofitsharingschemeandisnotsubjecttoamaximumprofitsharecap.Aseparatechartshowingminimum(TotalFixed)remunerationandactualtotalremunerationfor2013isshowninFigure3basanillustration.

Figure 3a:Illustration of Executive Director total remuneration at different levels of performance Figure 3b: Michael Williams’ minimum remuneration and

actual 2013 remuneration

0

250

500

750

1000

1250

1500

Annual Bonus LTIPFixed

Minimum

Chief Executive Finance Director Head of Investment Mgt

On-Target Maximum Minimum On-Target Maximum Minimum On-Target Maximum

£’000

20%

20%

40%

40%

40%

29%

29% 29%

43%

20%

40%

43%43%

28% 40% 28% 40% 28%

Total �xed Annual Bonus

Minimum 2013 actual0

250

500

750

1000

1250

1500

£’000

73%

27%

Fees policy for the Board Chairman and other Non-Executive DirectorsFigure4,below,setsouttheCompany’spolicyonfeesfortheBoardChairmanandotherNon-ExecutiveDirectors.

Figure 4:Chairman and Non-Executive Directors’ fees

ElementPurpose and link to strategy Operation Maximum

Board Chairman fee

To pay a market competitiveall-inclusive fee that takes account of the role and responsibilities.

The Board Chairman is paid a single fee for all his responsibilities. The level of the fee is reviewed periodically by the Committee, with reference to marketlevelsincomparablysizedFTSEcompanies,and a recommendation is then made to the Board (withouttheChairmanbeingpresent).

Aresolutionisbeingproposedatthe2014AGMtoincreasethemaximumaggregatefeeforallNon-ExecutiveDirectorsincludingtheBoardChairmanto£450,000fromthecurrentmaximumof£350,000.ThisistoaccommodatethechangefromexecutivechairmantoNon-ExecutiveChairmanandgivesomeflexibilityforanadditionalNEDinfutureifrequired.

ThecurrentfeefortheChairmanis£125,000.ThisissubjecttoreviewperiodicallyandpotentialchangeunderthisPolicy.

Non-ExecutiveDirector fees

To pay a market competitive basic fee, and supplements for significant additional responsibilities such as Committee Chairmanships.

Thenon-executivesarepaidabasicfee.Therearealso supplements for Committee Chairmanships and the SID.

The fee levels are reviewed periodically by the ChairmanandExecutiveDirectors.

As above.

Thecurrentbasicfeeis£40,000,andsupplementsfor the Committee Chairmanships and role of SID rangebetween£4,000and£6,000butaresubjectto review and potential change periodically under this Policy.

Non-ExecutiveDirectorsareengagedunderlettersofappointment;theydonothavecontractsofserviceandarenotentitledto compensation on early termination of their appointment.

Compliance with the FCA Remuneration CodeThe Committee regularly reviews its remuneration policy’s compliance with the principles of the Remuneration Code of the UK financialservicesregulator,asapplicabletotheGroup.Theremunerationpolicyisdesignedtobeconsistentwiththeprudentmanagementofriskandthesustained,long-termperformanceoftheGroup.



Annual Report on Remuneration – subject to advisory vote by shareholders at the 2014 AGMThispartofthereporthasbeenpreparedinaccordancewithPart3oftherevisedSchedule8setoutinTheLargeandMedium-sizedCompaniesandGroups(AccountsandReports)(Amendment)Regulations2013,and9.8.6RoftheListingRules.TheAnnualRemunerationReportwillbeputtoanadvisoryshareholdervoteatthe2014AGM.Theinformationonpages54to65hasbeenaudited.

Remuneration for the FY2013Figure5belowsetsouttheremunerationreceivedbytheDirectorsinrelationtoperformanceintheyearto29September2013 and the prior year comparisons.

Figure 5:Directors’ Emoluments

£’000 Salary &

Fees Benefits(1)Pension(2)

Annual Bonus paid in cash(3)

Annual Bonus mandatory

deferral into the Deferred Profit Share

Plan (DPSP)(3)

Annual Bonus

voluntary deferral into the DPSP(3)

Profit share

awarded as

pension(3)

Total Annual Bonus

Long- Term

Incentive(4)

Compen- sation for

loss of office(5) Other(6) Total

Executive DirectorsHenryAlgeo(a) 2013 128 3 9 – – – – – n/a 150 n/a 290 2012 229 4 20 65 34 – 60 159 n/a n/a n/a 412 Robin Bayford(b) 2013 74 2 – – – – – – n/a n/a n/a 76 2012 269 4 – – 41 132 – 173 n/a n/a n/a 446 StephenFord(c) 2013 158 5 – 127 70 – – 197 n/a n/a 11 371 2012 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a BarryHoward(a) 2013 143 8 1 – – – – – n/a n/a n/a 152 2012 295 10 3 84 17 – – 101 n/a n/a – 409 Jamie Matheson(a) 2013 159 3 – – – – – – n/a 170 n/a 332 2012 311 4 5 178 64 – – 242 n/a n/a n/a 562David McCorkell(d) 2013 15 – 2 – – – – – n/a 30 n/a 47 2012 227 4 33 42 – – 32 74 n/a n/a n/a 338DavidNicol(e) 2013 183 1 – 147 83 – – 230 n/a n/a n/a 414

2012 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Sarah Soar(a) 2013 93 6 5 – – – – – n/a 105 n/a 209 2012 184 7 8 93 22 – – 115 n/a n/a n/a 314 Ben Speke(a) 2013 98 2 14 – – – – – n/a 120 n/a 234 2012 191 2 30 50 29 40 20 139 n/a n/a n/a 362 Andrew Westenberger(f)

2013 225 2 – 181 100 – – 281 n/a n/a n/a 5082012 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

Michael Williams 2013 152 3 10 284 117 – – 401 n/a n/a 9 575 2012 143 2 8 156 53 – – 209 n/a n/a – 362 Non-Executive Chairman Simon Miller(h) 2013 101 – – – – – – n/a n/a n/a n/a 101 2012 63 – – – – – – n/a n/a n/a n/a 63Non-Executive Directors NickHood(g) 2013 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 2012 23 – – – – – – n/a n/a n/a n/a 23Angela Knight 2013 47 – – – – – – n/a n/a n/a n/a 47 2012 39 – – – – – – n/a n/a n/a n/a 39Stephen Lamport 2013 43 – – – – – – n/a n/a n/a n/a 43 2012 39 – – – – – – n/a n/a n/a n/a 39DavidNicol(e) 2013 22 – – – – – – n/a n/a n/a n/a 22 2012 22 – – – – – – n/a n/a n/a n/a 22Jock Worsley 2013 60 – – – – – – n/a n/a n/a n/a 60 2012 56 – – – – – – n/a n/a n/a n/a 56Total 2013 1,701 35 41 740 370 – – 1,110 – 575 20 3,482

2012 2,091 37 107 668 260 172 112 1,212 – – – 3,447

Note1: ExecutivescanelecttousepartoftheirtotalfixedremunerationtofundbenefitsincludingPermanentHealthInsuranceandPrivateMedicalInsurance.Benefitsinkindincludesanotionalinterestfreeloaninrelationtonil-paidshares.

Note2: ExecutivescanelecttosacrificefixedremunerationintotheCompanydefinedcontributionpensionscheme.MichaelWilliamsistheonlydirectorwhoremainsanactivememberoftheDefinedBenefitSchemeandthe£10,000shownaboveistheemployers’contributionintothatscheme.

Note3: Thisrelatestothepaymentoftheannualbonusfortheyearending29September2013.Annualbonusissubjecttoamandatorydeferralpolicyassetoutonpage51.DirectorscanelecttovoluntarilydeferannualbonusintotheDPSPorsacrificepartoftheirannualbonusintotheCompanydefinedcontributionpensionscheme.

Note4: TherearenolongtermincentivesvestingtoExecutiveDirectorsduringtherelevantperiod.Note5: ThedetailsofpaymentsmadetoDirectorswhoresignedfromtheBoardduringtheyeararesetoutonpage61.Note6: RelatestodividendequivalentpaymentsmadeundertheDeferredProfitSharePlan.Notea: Resigned21March2013.Noteb: Retired31December2012.Notec: Appointed21March2013.Noted: Retired22October2012.Notee: NEDuntil21March2013whenhewasappointedasChiefExecutive.Notef: Appointed1January2013.Noteg: Retired24February2012.Noteh: Non-ExecutiveDirectoruntilappointmentasNon-ExecutiveChairmanon21March2013.

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Annual bonus for the year ending 29 September 2013 Inprioryears,ExecutiveDirectors’annualbonuseswerepaidfromaprofitsharingpool.However,fortheyearending29 September2013,annualbonusesfortheChiefExecutive,FinanceDirectorandHeadofInvestmentManagementweredeterminedbytheCommitteebasedonanassessmentofperformancerelativetoKeyPerformanceIndicators.Thisnewapproach was intended to achieve a more direct relationship between progress towards the Company’s strategic goals and the bonuses that were awarded. The bonus award for Michael Williams, as an Investment Manager, is assessed in relation to the profitability of his Investment Management team which was significantly higher in 2013 than in the prior year.

Figure6belowshowstheKeyPerformanceIndicatorsthatwereconsideredbytheCommittee,theirweightingsandtheCommittee’s assessment of performance for the year.

Figure 6:Key Performance Indicators for 2013 bonus award

Key Performance Indicator Weighting

Prior year performance

Performance expectation for

year ending 29 September

20132

Actual for year ending

29 September 2013 Comment

Profit before tax1 35% £42.9m £49.1m £52.3m Strong performance, exceedingprioryearby22%,andexceedingexpectationby6.5%.

Operating margin1 35% 16.5% 17.2% 18.5% Strong performance, exceedingprioryearby200basispointsandexpectationby 130 basis points.

Non-financial performance indicators

30% n/a n/a n/a Significant progress in clarifying and developing strategy, simplification of business model whilst maintaining prudent risk management.

1Adjustedforexceptionalitems2Expectationwassetatmarketforecast.

Basedonthisassessmentofperformance,theCommitteehasawardedthefollowingannualbonusestoExecutiveDirectors,withthesplitbetweencashanddeferredsharesasindicatedinthetablebelow:

Name RoleCash

£

Deferred Shares1

£Total

£% of

fixed pay4

DavidNicol2 ChiefExecutive 147,099 83,429 230,529 125

Andrew Westenberger3 FinanceDirector 181,250 100,000 281,250 125

StephenFord2 HeadofInvestmentManagement 127,340 70,256 197,596 125

Michael Williams Investment Manager 284,393 117,197 401,590 260

1Seedeferraltable(page51).2Appointed 21 March 2013. 3Appointed 1 January 20134 Bonusandbonusasa%offixedpayareshownpro-ratedfortheperiodofserviceasadirectorduringtheyear.AndrewWestenbergerandStephenFordreceivedsalary,benefitsandbonusinrelationtotheirnon-qualifyingservicesasemployees,priortotheirappointmentasdirectorson1January2013and21March2013respectively.



WiththeexceptionofMichaelWilliams,themaximumannualbonusforeachindividualExecutiveDirectoriscurrently200%oftotalfixedpay.

Annual bonus awards are delivered part in cash and part in deferred shares that vest after 3 years. The table below shows howthesplitiscalculated:

Portion of variable pay Fraction deferred

Upto£50,000 None

Between£50,000and1xfixedremuneration One third

Above1xfixedremuneration Two thirds

InMichaelWilliams’case,asheisanInvestmentManagerwithsignificantlylowerbasepay,thefirst£50,000isincash,andthebalanceabove£50,000istwo-thirdscash/one-thirdshares.

TheRemunerationCommitteehasthediscretiontoadjustthefinaloutcomeupwardsordownwardsintheeventthatanexceptionaleventoutsideofthedirectors’controloccurswhich,intheCommittee’sopinion,materiallyaffectedthebonusout-turn.Therewerenosucheventsduring2013.

Boththecashandshareelementofthebonusissubjecttoclawback.PleaseseetheDirectors’RemunerationPolicytableforfurther details.

DavidMcCorkell,JamieMatheson,SarahSoar,BenSpekeandHenryAlgeoleftemploymentduringtheyear.Underthetermsof their contract, they were not entitled to a bonus in relation to the year under review.

Outstanding share awardsThetablebelowsetsoutdetailsofExecutiveDirectors’outstandingshareawards(whichwillvestinfutureyearssubjecttoperformanceand/orcontinuedservice).

Figure 7:Outstanding share awards

Scheme GrantDateExercise

Price

Numberofoptions at

30 September 2012*

Grantedduring

year

Exercisedduring

year

Lapsed during

year

Numberofoptions at

29 September 2013**

End of Performance

PeriodMaturity

Date ExercisePeriod

HenryAlgeo(a)

2004ASOP 28/11/08 103.50p 10,000 – – – 10,000 28/11/13 28/11/13 28/11/13 28/11/182004ASOP 07/12/09 165.70p 4,000 – – – 4,000 07/12/14 07/12/14 07/12/14 06/12/19DPSP 02/12/10 £0.00 38,288 – – – 38,288 n/a 02/12/13 02/12/13 01/12/16DPSP 08/12/11 £0.00 55,851 – – – 55,851 n/a 08/12/14 08/12/14 07/12/17DPSP 06/12/12 £0.00 – 17,805 – – 17,805 n/a 06/12/15 06/12/15 05/12/18

Total 108,139 17,805 – – 125,944

Robin Bayford(b)

DPSP 02/12/10 £0.00 146,550 – – – 146,550 n/a 02/12/13 02/12/13 01/12/16DPSP 08/12/11 £0.00 112,826 – – – 112,826 n/a 08/12/14 08/12/14 07/12/17DPSP 06/12/12 £0.00 – 90,815 – – 90,815 n/a 06/12/15 06/12/15 05/12/18

Total 259,376 90,815 – – 350,191

StephenFord(c)

SEMP 18/12/06 184.50p 13,550 – – – 13,550 18/12/10 18/12/10 18/12/10 18/12/13SEMP 11/06/07 217.50p 4,597 – – – 4,597 11/06/11 11/06/11 11/06/11 11/06/14SEMP 14/12/07 162.50p 6,153 – – – 6,153 14/12/12 14/12/12 14/12/12 14/12/15SEMP 24/07/08 104.00p 24,038 – – – 24,038 24/07/12 24/07/12 24/07/12 24/07/152004ASOP 28/11/08 103.50p 10,000 – – – 10,000 28/11/13 28/11/13 28/11/13 28/11/182004ASOP 07/12/09 165.70p 4,000 – – – 4,000 07/12/14 07/12/14 07/12/14 06/12/19DPSP 02/12/10 £0.00 51,284 – – – 51,284 n/a 02/12/13 02/12/13 01/12/16DPSP 08/12/11 £0.00 121,746 – – – 121,746 n/a 08/12/14 08/12/14 07/12/17DPSP 06/12/12 £0.00 – 108,506 – – 108,506 n/a 06/12/15 06/12/15 05/12/18

Total 235,368 108,506 – – 343,874

BarryHoward(a)

SEMP 26/05/05 101.00p 49,504 – – 49,504 – 26/05/09 26/05/09 26/05/09 26/05/12SEMP 18/12/06 184.50p 27,100 – – – 27,100 18/12/10 18/12/10 18/12/10 18/12/132004ASOP 29/11/07 168.00p 10,925 – 10,925 – – 29/11/12 29/11/12 29/11/12 29/11/17SEMP 14/12/07 162.50p 15,384 – – – 15,384 14/12/12 14/12/12 14/12/12 14/12/15SEMP 24/07/08 104.00p 24,038 – – – 24,038 24/07/12 24/07/12 24/07/12 24/07/15SEMP 12/12/08 108.60p 9,208 – – – 9,208 12/12/12 12/12/12 12/12/12 12/12/15DPSP 02/12/10 £0.00 51,801 – – – 51,801 n/a 02/12/13 02/12/13 01/12/16DPSP 08/12/11 £0.00 50,774 – – – 50,774 n/a 08/12/14 08/12/14 07/12/17DPSP 06/12/12 £0.00 – 8,928 – – 8,928 n/a 06/12/15 06/12/15 05/12/18

Total 238,734 8,928 10,925 49,504 187,233

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Figure 7:Outstanding share awards (continued)

Scheme GrantDateExercise

Price

Numberofoptions at

30 September 2012*

Grantedduring

year

Exercisedduring

year

Lapsed during

year

Numberofoptions at

29 September 2013**

End of Performance

PeriodMaturity

Date ExercisePeriod

Jamie Matheson(a)


Total 174,153 33,667 – – 207,820

David McCorkell(d)

DPSP 02/12/10 £0.00 56,306 – – – 56,306 n/a 02/12/13 02/12/13 01/12/16DPSP 08/12/11 £0.00 55,851 – – – 55,851 n/a 08/12/14 08/12/14 07/12/17

Total 112,157 – – – 112,157

Sarah Soar(a)

SEMP 26/05/05 101.00p 9,900 – – 9,900 – 26/05/09 26/05/09 26/05/09 26/05/12SEMP 19/12/05 157.00p 6,369 – – 6,369 – 19/12/09 19/12/09 19/12/09 19/12/12SEMP 18/12/06 184.50p 5,420 – – – 5,420 18/12/10 18/12/10 18/12/10 18/12/13SEMP 14/12/07 162.50p 15,384 – – – 15,384 14/12/11 14/12/11 14/12/11 14/12/14SEMP 24/07/08 104.00p 24,038 – – – 24,038 24/07/12 24/07/12 24/07/12 24/07/15SEMP 12/12/08 108.60p 9,208 – – – 9,208 12/12/12 12/12/12 12/12/12 12/12/15DPSP 02/12/10 £0.00 38,288 – – – 38,288 n/a 02/12/13 02/12/13 01/12/16DPSP 08/12/11 £0.00 38,080 – – – 38,080 n/a 08/12/14 08/12/14 07/12/17DPSP 06/12/12 £0.00 – 11,328 – – 11,328 n/a 06/12/15 06/12/15 05/12/18

Total 146,687 11,328 – 16,269 141,746

Ben Speke(a)


Total 131,331 36,128 – – 167,459

Michael WilliamsDPSP 02/12/10 £0.00 62,217 – – – 62,217 n/a 02/12/13 02/12/13 01/12/16DPSP 08/12/11 £0.00 35,405 – – – 35,405 n/a 08/12/14 08/12/14 07/12/17DPSP 06/12/12 £0.00 – 27,794 – – 27,794 n/a 06/12/15 06/12/15 05/12/18

Total 97,622 27,794 – – 125,416

*ordateofappointmentiflater**ordateofresignationifearlierThesharepriceat29September2013was£2.65Notea: Resigned21March2013.SEMPoptionslapseduponcessationofemploymenton21September2013.DPSPawardswillvestonnormalvestingscheduleinaccordancewith

good leaver provisions.Noteb: Retired31December2012.DPSPawardswillvestonnormalvestingscheduleinaccordancewithgoodleaverprovisions.Notec: Appointed21March2013.



Deferred BonusTheExecutiveDirectorsreceivepartoftheirannualvariablepayasadeferredawardinBDHshares(“DPSP”),normallyintheformofoptionswithazeroexerciseprice.Theseoptionsaresubjecttoserviceconditionsandvestinonetranchethreeyearsfrom the date of grant.

Share Incentive Plan (“SIP”)AllemployeesoftheGroupareeligibletoparticipateintheSIPfollowingsixmonthsofservice.Employeesmayusefundsfromtheirgrosssalaryuptoamaximumof10%oftheirgrosssalaryinregularmonthlypayments(beingnotlessthan£10andnotgreaterthan£125)toacquireordinarysharesintheCompany(“PartnershipShares”).PartnershipSharesareacquiredmonthly.ForeveryPartnershipSharepurchased,theemployeereceivesonematchingshareuptothevalueof£20.Allsharesto date awarded under this scheme have been purchased in the market by the Trustees and it is the intention of the Board to continue this policy in the year to September 2014.

Share schemes under which no awards were made in 20132004 Approved Share Option Plan (“ASOP”)AwardsundertheASOPhavebeenhistoricallygrantedtodirectorsandotheremployees.Theseawardshavebeensubjecttoaconditionthattheyear-on-yeargrowthinannualfeeincomechargedonportfoliosshallnotbelessthan10%perannumcompoundora33%increaseinannualfeesoverathree-yearperiod.TheperformancecriteriaaresetbytheRemunerationCommittee and selected to recognise that income growth is a key driver of shareholder value.

Theoptionsareexercisablefromfivetotenyearsfromgrant.TheseoptionsareonlygrantedonceanemployeehasbeenwiththeGroupfortwoyears.AwardshavenotbeenmadeundertheASOPsince2011.TheBoarddoesnotintendtoissueanyoptions or shares under this scheme in 2014.

Senior Employee Matching Purchase Share Scheme (“SEMP”)Awardshavenotbeenmadeunderthisschemesince2009.TheSEMPwasadditionaltotheaboveschemeandallowedafurther5%issueofoptionsoveratenyearperiod,providedthatasimilarnumberofsharesweresubscribedforbyseniorexecutivesatthepricetheoptionsareissued.TheBoarddoesnotintendtoissueanyoptionsorsharesunderthisschemeinthe future.

DilutionBy agreement with shareholders, the aggregate number of shares which may be issued at any date of grant, when aggregated with shares issued or issuable pursuant to options or awards granted in the preceding 10 years under any employee share planoperatedbytheCompanyotherthantheSEMP,shallnotexceed10%oftheissuedsharecapital.

Thecurrentcumulativedilutionleveloverthetenyearperiodto29September2013is5.14%.Thisincludes1.49%issuedundertheSEMPand0.64%undertheall-employeeplans(discontinuedSAYEscheme).

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Directors’ shareholding and share interestsToaligntheinterestsoftheExecutiveDirectorswithshareholders,ExecutiveDirectorsarerequiredtobuildupshareholdingsthroughtheretentionofsharesvestingundertheCompany’sshareplans.TheExecutiveDirectorsarerequiredtobuildupashareholdingequivalentto100%oftotalfixedpayoveraperiodoffiveyears,excludingawardsthathavenotyetvestedorhavevestedbutnotyetbeenexercised.TheChairmanandNon-ExecutiveDirectorsareencouragedtoholdsharesintheCompanybutarenotsubjecttoaformalshareholdingguideline.TheinterestsoftheDirectorsandtheirconnectedpersonsinthe share capital of the Company are shown in the table below.

Figure 8:Share Interests

As at 29 September 2013

Director

Beneficially owned at

30 September 2012*


29 September 2013**


30 November 2013

Outstanding Deferred

Profit Share Plan awards

Outstanding Senior

Employee Matching

Share Scheme options

Outstanding Approved

Share Option awards

Locked in matching

shares under

the Share Incentive

Plan

HenryAlgeo 74,916 75,358 n/a 111,944 – 14,000 440 Robin Bayford 587,685 496,870 n/a 350,191 – – –StephenFord 190,514 195,111 195,111 281,536 48,338 14,000 –BarryHoward 125,657 137,024 n/a 111,503 75,730 – 440 Angela Knight 1,683 2,583 2,583 – – – –Sir Stephen Lamport 4,500 4,950 4,950 – – – –Jamie Mattheson 485,061 485,503 n/a 207,820 – – 440 David McCorkell 666,120 666,204 n/a 112,157 – – 393 Simon Miller 45,000 50,000 50,000 – – – –DavidNicol – 58,000 58,000 – – – –Sarah Soar 256,267 261,060 n/a 87,696 54,050 – 440 Ben Speke 360,287 360,287 n/a 167,459 – – –Andrew Westenberger – – – – – – –Michael Williams 968,397 969,316 969,420 125,416 – – 413 Jock Worsley 18,000 18,000 18,000 – – – –

*ordateofappointmentiflater**ordateofresignationifearlier

Ashareholdingguidelinehasbeenintroducedbutwasnotinplaceasat29September2013.The%ofshareholdingguidelineachieved will be disclosed in the 2014 accounts.

Inaddition,Directorsduringtheyearheldthefollowingnilpaidshares:

PriceLatest

repayment date

30 September 2012*

Nil Paid

29 September 2013**

Nil Paid

StephenFord £2.175 June 2014 4,597 –

Total 4,597 –

BarryHoward £1.845 December 2013 27,100 27,100 £1.625 December 2014 15,384 15,384£1.040 July2015 24,038 24,038£1.086 December2015 9,208 9,208

Total 75,730 75,730

Sarah Soar £1.570 December 2012 6,369 –£1.845 December 2013 5,420 5,420£1.625 December 2014 15,384 15,384£1.040 July2015 24,038 24,038£1.086 December2015 9,208 9,208

Total 60,419 54,050

*ordateofappointmentiflater**ordateofresignationifearlier



Material Contracts with DirectorsTherewerenomaterialcontractsbetweentheGroupandtheDirectorsotherthantheloansoutstandingfornilpaidsharesforStephenFord,BarryHowardandSarahSoaraspartofthediscontinuedSEMP,allnilpaidshareshavebeenpaidupduringthefinancialyear.TheDirectorsundertaketransactionsinstocksandsharesintheordinarycourseoftheGroup’sbusinessfortheirownaccount.ThetransactionsarenotmaterialtotheGroupinthecontextofitsoperations.£nilwasoutstandinginrespect of these transactions at 29 September 2013 and 30 September 2012.

Total pension entitlementsExecutiveDirectorsmayopttoreceivepensionpaidforfromtheiraggregatefixedpayamount.Theymayalsoreceivepartoftheir annual bonus in the form of pension contribution.

Defined Contribution SchemeExecutiveDirectors’mayjointheCompanyDefinedContributionScheme.AndrewWestenbergerandDavidNicolhavenotmade contributions to the Scheme and do not receive any benefit from the Company under the Scheme. Michael Williams has electedtosacrificesalaryintothisscheme.StephenFordhasnotsacrificedsalaryintotheschemeinrelationtohisqualifyingservices as a Director during the year.

Defined Benefit SchemeEntry to the Company Defined Benefit Scheme was withdrawn in 2004 for new staff members. Robin Bayford, Jamie Matheson and Sarah Soar all transferred their pension benefits out of the Defined Benefit Scheme in December 2007. However,theirdependantsremainedeligiblefordependants’pensionsfromthisscheme.

Michael Williams remains an active member of this scheme while David McCorkell and Ben Speke remained deferred members of this scheme and as above, their dependants remained eligible for dependants’ pensions from this scheme.

Detailsoftheaccruedpensionattheyear-endareasfollows:

Figure 9:Defined Benefit Pension

Accrued pension

entitlement at 30 September

2012*#

Increase in accrued

pension (implicitly including inflation)

Transfer value of accrued pension at

30 September 2012#

Transfer value of accrued pension at

29 September 2013**

Change in transfer value over year less

members’ contributions

made

Increase in accrued

pension (explicitly excluding inflation*)

Transfer value of increase in accrued

pension less member’s

contributions over year to

29 September 2013

Cost to Group over and above member’s

contributions where still

accruing service in the Scheme over

the year to 29 September

2013£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

StephenFord 4 3 0 29 30 1 0 0David McCorkell 2 8 0 124 126 2 0 2 0Ben Speke3 15 1 285 299 14 0 6 0Michael Williams1 17 2 335 371 31 2 36 10

*Aninflationadjustmentof2.6%hasbeenexcludedfromtheincreasetotheaccruedpension.**Atleavingdateifpriorto29September2013.#On appointment if later than 30 September 2012.1Forthesemembers,theincreaseinaccruedpensionhasbeensubjecttoaminimumofzerotoreflecttheirleavingbenefitunderpinasat1April2004.2Resigned 22 October 2012.3Resigned 21 March 2013.4Appointed 21 March 2013.

TransfervalueshavebeencalculatedinaccordancewiththePensionSchemes(TransferValue)Regulations2008.

Thereisnoadditionalbenefitreceivableifadirectorretiresearly,unlessintheeventofillhealth(whennoactuarialreductionisapplied).

Death-in-Service BenefitsExecutiveDirectorsareeligibleforDeath-in-ServicebenefitcoverwhichisequaltosixtimestheDirector’sfixedremuneration.

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Payments within the year to past directorsThere have been no disclosable payments made to directors after they have left office during the year.

Loss of office paymentsDavidMcCorkellresignedfromtheBoardwitheffectfrom22October2012.TheemolumentsshowninFigure5arepro-ratedfortheperiodtothedateonwhichheceasedtobeadirector.Hecontinuedtobeemployedfollowingthecessationofhisdirectorship,forafurthersixmonthsduringwhichhisbasesalary,pensionandbenefitsremainedunchanged.MrMcCorkellceasedtobeemployedbytheCompanywitheffectfrom21April2013andreceivedaseverancepaymentof£30,000.Witheffect from 22 April 2013, the Company entered into a consultancy agreement with Mr McCorkell, to enable the Company to continuetobenefitfromhisskillsandexperience,underwhichanannualfeeof£50,000willbepaid.Theconsultancyagreement will terminate on 30 June 2017.

JamieMatheson,SarahSoar,BenSpekeandHenryAlgeoresignedfromtheBoardwitheffectfrom21March2013.TheemolumentsforthesedirectorsshowninFigure5arepro-ratedfortheperioduptothedateonwhichtheyceasedtobeadirector.Theycontinuedtobeemployedfollowingthecessationoftheirdirectorships,forafurthersixmonths,duringwhichtheir base salary, pension and benefit arrangements remained unchanged. All four ceased to be employed with effect from 21 September2013.Eachreceivedaseverancepaymentequaltosixmonths’totalfixedpay,assummarisedFigure5.TheCompany also agreed to continue these departing directors’ private medical insurance cover on the same terms until 30 April 2014.

BarryHowardalsoresignedfromtheBoardon21March2013.TheemolumentsshowninFigure5arepro-rateduptothedateonwhichheceasedtobeadirector.Hewillcontinuetobeemployeduntil19February2014.Hisbasesalary,pensionandbenefitarrangementswillremainunchangedduringthatperiod.Hewillreceiveaseverancepaymentof£78,500uponcessation of his employment.

TheRemunerationCommitteeexerciseditsdiscretiontotreatallofthedepartingdirectorsreferredtointheparagraphsaboveas“GoodLeavers”inrespectofbonusawardsalreadymadeundertheDeferredProfitSharePlan(“DPSP”);thesharestheyhadearnedforpastperformanceundertheschemehavebeenorwillbepermittedtovesttothem.However,nofurtherbonus payments or awards were paid to the departing directors for the financial year ending on 29 September 2013.

Figure 10:Percentage increase in the remuneration of the Chief Executive

Jamie Matheson* David Nicol** Total 2012 2013 2013 2013 Change

ChiefExecutive(£)–salary 340,000 159,210 183,229 342,439 1%–bonus 242,408 – 230,529 230,529 -5%Averageperemployee(£)–salary 43,647 – – 44,242 1%–bonus 16,083 – – 21,685 35%

*JamieMathesonwastheformerExecutiveChairmanwhoresignedasadirectorwitheffectfrom21March2013.Inaccordancewithhiscontract,hedidnotreceiveabonusinrelationtothe year to 29 September 2013.**DavidNicolistheChiefExecutivewhowasappointedon21March2013.BonusandsalaryaboverelatetotheperiodofhisqualifyingserviceasChiefExecutve.

Figure10showsthemovementinthesalaryandannualbonusfortheChiefExecutivebetweenthecurrentandpreviousfinancial year compared to that for the average UK employee. The Committee has chosen this comparator and it feels that is providesamoreappropriatereflectionoftheearningsoftheaverageworkerthanthemovementintheGroup’stotalwagebill,whichisdistortedbymovementsinthenumberofemployees.AstheChiefExecutivewasappointedduringtheyear,the2013figureincludestheremunerationofthepreviousExecutiveChairman,asthemostappropriatepriorcomparator.Ratherthanhavingseparatebasesalary,pensionandbenefitcomponents,executivedirectorsandotherseniorstaffreceiveatotalfixedpaysumwhichtheycanreceivepartasadefinedpensioncontributionand/orbenefitssuchascarbenefit,privatemedicalinsuranceorlong-termillness/disabilityinsurance.Morejuniorstaffreceiveabasesalaryandpensioncontributionsadditionally.Assuch,ananalysisofthemovementinbenefitsfortheChiefExecutiveandtheaverageemployeewasnotconsideredtobepracticalormeaningfulandhasnotbeenincludedinFigure10.



Performance Graph ThechartbelowshowstheCompany’sTotalShareholderReturn(TSR)performanceagainsttheperformanceoftheFTSEAllShareIndex–FinancialServicesfrom30September2008to29September2013.TheFTSEAllShare–FinancialServicesindexwaschosenasacomparatorbecauseitistheindexthatencompassesmostofourkeycompetitors.TSRiscalculatedassuming dividends are reinvested on receipt.

Figure 11:Total Shareholder Return performance

Brewin Dolphin Holdings PLC TR

Septe

mber

200

8

Septe

mber

201

3

Septe

mber

201

2

Septe

mber

201

1

Septe

mber

201

0

Septe

mber

200

9

FTSE All Share/Financials TR

£50

£100

£150

£200

£250

£300

Figure12showsthetotalremunerationfigureforthedirectorundertakingtheroleofChiefExecutiveduringeachofthosefinancial years. The total remuneration figure includes the annual bonus which was awarded based on performance in those years.Wherethisbonusissubjecttodeferral,itisshownintheyearinwhichitwasawarded.Theannualbonusisshownasapercentageofthemaximumfor2012and2013–therewasnomaximumamountforbonusintheprecedingyears.Nolongtermincentiveawardsweremadetothehighpaidexecutivedirectorduringtheperiod.

Figure 12:Total remuneration for Chief Executive

Year ending September2009 2010 2011 2012 2013

TotalRemuneration(£’000) 589 643 593 557 578Annualbonus(%max) n/a n/a n/a 39% 63%

Relative importance of the spend on payFigure13showsthemovementinspendonstaffcostsversusthatindividends.

Figure 13:Distribution Statement

2012 £’000

2013 £’000 Increase

Staff costs 122,393 137,326 12%Dividends 17,230 22,6121 31%

1 basedontheproposedfinaldividendforthe52weekperiodended29September2013of5.05ppersharewhichis subjecttoapprovalbyshareholdersattheAnnualGeneralMeeting(seenote14).

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Remuneration Committee GovernanceThe Remuneration Committee is governed by formal terms of reference agreed by the Board. The terms of reference were reviewed during the year to ensure they continued to accurately reflect the remit of the Committee. The terms of reference of the Remuneration Committee can be viewed on the Company’s website. The members of the Committee are listed in the tablebelow.AlloftheseareindependentNon-ExecutiveDirectorswiththeexceptionoftheCompanyChairmanwhowasindependent on his appointment.

The members of the Committee during the last financial year and their attendance at the meetings of the Committee are shownintheCorporateGovernanceReportonpage39.

NoneoftheRemunerationCommitteemembershasanypersonalfinancialinterests(otherthanasshareholders),conflictsofinterestarisingfromcrossDirectorshipsorday-to-dayinvolvementinrunningthebusiness.TheRemunerationCommitteedeterminestheindividualremunerationpackagesofeachExecutiveDirector.TheChiefExecutiveandFinanceDirectorattendmeetingsbyinvitationandassisttheCommitteeinitsdeliberations,exceptwhenissuesrelatingtotheirownremunerationarediscussed.Nodirectorsareinvolvedindecidingtheirownremuneration.TheCommitteecancallforexternalreportsandassistance. Independent legal advice may be sought by the Committee as required. The Company Secretary acts as Secretary to the Committee.

The Committee reviews the remuneration policy for senior employees below the Board as well as the policy on pay and conditionsofemployeesthroughouttheGroup.TheseareconsideredwhendeterminingExecutiveDirectorsremuneration.

During the period the Committee met twelve times and a number of issues were considered and discussed, including but not limitedto:

• Remunerationpolicyforexecutivedirectors,includingstructureandperformancecriteriafortheannualincentiveplanandtheintroductionofanewLongTermIncentivePlan;

• Introductionofashareholdingguidelineforexecutivedirectors;

• Adoption of a clawback policy for the annual incentive plan;

• DeterminationofremunerationpackagesfordirectorsjoiningtheBoard;

• Approval of compensation arrangements for directors leaving the Board;

• ApprovalofthegrantofoptionsundertheDeferredProfitSharePlan;

• DeterminationofannualincentivepayabletoexecutivedirectorsinrespectofFY2013;

• Oversightofremunerationarrangementsforseniorexecutives;

• ReviewoftheCompany’sPillar3Remunerationdisclosures;and

• Review of the Committee’s terms of reference.

External advisersTheRemunerationCommitteeisadvisedbyNewBridgeStreet(“NBS”),appointedbytheCommittee.NBSisamemberoftheRemunerationConsultantsGroupandabidesbyitsCodeofConductwhichrequiresitsadvicetobeimpartialandobjective.ThetotalfeespaidtoNBSinrespectofitsservicestotheCommitteeduringtheyearwere£58,525.

External DirectorshipsFigure14belowsetsoutdetailsoftheexternaldirectorshipsheldbytheExecutiveDirectorsandanyfeesthattheyreceivedinrespect of their services during the year.

Figure 14:External directorships and remuneration

Director Name Position FY 2013* FY 2012

Jamie Matheson STVGroupplc Non-ExecutiveDirector £17,500 £35,000Jamie Matheson MavenIncomeandGrowthVCT5plc Non-ExecutiveDirector £6,000 £12,000DavidNicol HermesPropertyUnityTrust Member of appointments Committee £13,750 n/a

*Pro-ratedfortheperiodto21March2013forJamieMathesonandfrom21March2013forDavidNicoltoreflecttheirrespectiveresignationandappointmentasdirectorsoftheCompany.



How the policy will be applied in 2014 onwards

(i) Base salary review

TheExecutiveDirectorssalarieswerelastreviewedinSeptember2013.Therewillbenosalaryincreasesfor2014.ThecurrentsalariesareshowninFigure15:

Figure 15:Current salaries for the Executive Directors

Salary as at 29 September

2013

Salary as at 30 September

2012*

Change

DavidNicol £350,000 £350,000 –StephenFord £300,000 £300,000 –Andrew Westenberger £300,000 £300,000 –Michael Williams £154,500 £154,500 –

*ordateofappointmentiflater

(ii) Fees for the Chairman and Non-Executive DirectorsAsdetailedintheremunerationpolicy,theCompany’sapproachtosettingnon-executivedirectors’remunerationiswithreferencetomarketlevelsincomparablysizedFTSEcompanies,levelsofresponsibilityandtimecommitments.ThesefeesarereviewedperiodicallybytheBoard.Asummaryofcurrentfeesisasfollows:

Figure 16:Current fees of the Chairman and Non-Executive Directors

As at 29 September

2013

Chairman £125,000Basefee* £40,000Senior Independent Director £4,000Committee Chairman £4,000–£6,000

*withtheexceptionofJWorsleywherethebasefeeis£50,000

(iii) Performance targets for the 2013-14 annual bonus, and LTIP awards to be granted in 2014 ForFY2014,theannualbonuswillbebasedonperformanceagainstabalancedscorecardcomprisingthreeKeyPerformanceAreas:profitbeforetax(35%weighting);operatingprofitmargin(35%weighting)andpersonalperformance/non-financialtargets(30%).Profitandmarginwillbeadjustedtoexcludetheimpactofexceptionalitems.

The Committee has chosen not to disclose, in advance, the annual bonus performance targets for the forthcoming year as theseincludeitemswhichtheCommitteeconsiderscommerciallysensitive.Fullretrospectivedisclosureofthetargetsandperformanceagainstthemwillbeseeninnextyear’sAnnualRemunerationReport.

TheCommitteeisseekingapprovaltoimplementanLTIPwitheffectfrom2014;detailsofthisareincludedwiththeNoticeofAGM.IfthenewPlanisapproved,theLTIPawardsgrantedin2014willbesubjecttotwoseparateperformanceconditions,eachaccountingforone-halfoftheaward.Theperformanceconditionsareasfollows:

Figure 17:Performance targets for the LTIP awards to be granted in 2014

Performance metric

Weighting (each measured independently)

Threshold (25% vesting)

Stretch (100%

vesting) Measurement period

AdjustedEPS CompoundAnnualGrowthRate(CAGR)

50% 8% 18% CAGRmeasuredoverthethreefinancialyears2013-14,2014-15and2015-16,using2012-13as the base year.

2016fullyearadjusted operating profit margin

50% 23% 25% Measuredin2015-16financialyear.

Thereisalsoageneralunderpin:theCommitteewillassesstheoverallhealthofthebusinessandwhetherprudentriskmanagementhasbeenappliedandmayscale-backthevestinglevelifitconsidersthistobeappropriatehavingtakenaccount of this general underpin.

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Statement of shareholder voting Atlastyear’sAGM,theDirectors’RemunerationReportreceivedthefollowingvotesfromshareholders:

Figure 18:Shareholder Voting

2013 AGM %

Votes cast in favour 129,412,408 89%Votes cast against 15,444,463 11%Total votes cast 144,856,871Abstentions 20,429,927

WhilstourRemunerationPolicywasapprovedbyshareholderslastyear,wereceived11%votesagainsttheresolution.This waslargelyduetosomeshareholdershavingconcernsaboutthesizeofincreasesinfixedpay.Theseincreaseswereintendedtore-positionthebasesalariesatamorecompetitivelevelandbalancetheintroductionofacaponvariablepay.However,thetotalremuneration,afterapplicationoftheincreasesin2012,remainedsubstantiallybelowmarketmedianlevelsforacompanyofBrewinDolphin’ssize.Therehavebeennoincreasesinbasesalaryatthestartofthe2013-14financialyear.

ApprovalThisDirectors’RemunerationReport,includingboththePolicyandAnnualRemunerationReporthasbeenapprovedbytheBoard of Directors.

Signed on behalf of the Board of Directors

Angela KnightChairman of the Remuneration Committee 3 December 2013

Directors’ Responsibilities


The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors are requiredtopreparetheGroupfinancialstatementsinaccordancewithInternationalFinancialReportingStandards(IFRSs)asadoptedbytheEuropeanUnion(“EU”)andArticle4oftheIASRegulationandhavealsochosentopreparetheparentCompanyfinancialstatementsunderIFRSsasadoptedbytheEU.Undercompanylawthedirectorsmustnotapprovetheaccounts unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, International Accounting Standards 1 requires thatdirectors:

• properly select and apply accounting policies;

• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

• provideadditionaldisclosureswhencompliancewiththespecificrequirementsinIFRSsareinsufficienttoenableuserstounderstand the impact of particular transactions, other events and conditions on the entity’s financial position and financial performance; and

• make an assessment of the Company’s ability to continue as a going concern.

ThedirectorsareresponsibleforkeepingproperaccountingrecordsthataresufficienttoshowandexplaintheCompany’stransactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements maydifferfromlegislationinotherjurisdictions.

Directors’ Responsibility Statement Weconfirmthattothebestofourknowledge:

1. thefinancialstatements,preparedinaccordancewithInternationalFinancialReportingStandardsasadoptedbytheEuropean Union, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole. In addition, each of the directors considers that the Annual Report, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company’s performance, business model and strategy; and

2. the management report, which is incorporated into the Directors’ Report together with the information provided in the Strategic Report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.

By order of the Board

David Nicol Andrew WestenbergerChiefExecutive FinanceDirector3 December 2013

Independent Auditor’s Report

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To the members of Brewin Dolphin Holdings PLC Opinion on financial statements

Inouropinion:

• the financial statements give a true and fair view of the stateoftheGroup’sandoftheParentCompany’saffairsasat29 September2013andoftheGroup’sprofitforthe period then ended;

• theGroupfinancialstatementshavebeenproperlypreparedinaccordancewithInternationalFinancialReportingStandards(IFRSs)asadoptedbytheEuropean Union;

• theParentCompanyfinancialstatementshavebeenproperlypreparedinaccordancewithIFRSsasadoptedby the European Union and as applied in accordance with the provisions of the Companies Act 2006; and

• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006andasregardstheGroup’sFinancialStatements,Article 4 of the IAS Regulation.

The financial statements comprise the consolidated income statement,theconsolidatedandParentCompanystatementof financial position, the consolidated statement of comprehensiveincome,theconsolidatedandParentCompany statement of changes in equity, the consolidated statementofcashflowsandtherelatednotes1to35.Thefinancial reporting framework that has been applied in their preparationisapplicablelawandIFRSsasadoptedbytheEuropean Union and as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act 2006.

Going concernAs required by the Listing Rules we have reviewed the directors’statementonpage26thattheGroupisagoingconcern.Weconfirmthat:

• we have not identified material uncertainties related to events or conditions that may cast significant doubt on theGroup’sabilitytocontinueasagoingconcernwhichwe believe would need to be disclosed in accordance withIFRSsasadoptedbytheEuropeanUnion;and

• we have concluded that management’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

However,becausenotallfutureeventsorconditionscanbepredicted, this statement is not a guarantee as to the Group’sabilitytocontinueasagoingconcern.

Our assessment of risks of material misstatementThe assessed risks of material misstatement described below are those that had the greatest effect on our audit strategy, the allocation of resources in the audit, and directingtheeffortsoftheengagementteam:

• theassessmentoftheGroup’scalculationofintangibleassets, comprising goodwill, client relationships and softwaredevelopment.Thisisacomplexandjudgementalprocess,concerningestimatesoffuturecash flows and growth rates based on management’s assessment of future profitability;

• theassessmentoftheGroup’scalculationofprovisionsforonerousleases,isacomplexandjudgementalprocess due to the uncertainty of future rental receipts;

• the calculation of the pension scheme deficit is susceptible to small changes in the underlying assumptions and requires significant management judgementinrelationtomortality,priceinflation,discount rates, pension increases and earnings growth;

• noactivemarketexistsfortheGroup’sinvestmentinEuroclear, making the valuation of this investment a judgementalprocess;

• the assessment of provisions in relation to outstanding legal cases and claims, and the associated estimates of insurancerecoveriesrequiresignificantjudgementduetotheneedtoestimatetheexpenditurerequiredtosettle the obligations; and

• the assessment of shares to be issued and deferred purchase consideration payable in respect of acquisitions of businesses or client relationships. This requiressignificantjudgementsfrommanagementdueto the estimates of future earnings from acquisitions and discount rates used.

Our application of materialityWedeterminedplanningmaterialityfortheGrouptobe£2.86m,whichisapproximately10%ofpre-taxprofit,andbelow2%ofequity.

We agreed with the Audit Committee that we would report totheCommitteeallauditdifferencesinexcessof£57,000,as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also report to the Audit Committee on any disclosure matters that we identified when assessing the overall presentation of the financial statements.

An overview of the scope of our auditThemajorityoftheoperationsoftheGrouparebasedintheUnitedKingdomandareauditedbyDeloitteLLP.TheonlyexceptiontothisisTilmanBrewinDolphinLimited,anIrishCompany,whichrepresents4%ofpre-taxprofitandwhichis audited by another firm. We have supervised their work on thefiguresincludedintheGroup’sfinancialstatementsforthis entity through the issuance of instructions, receipt of summaries of work performed and ongoing dialogue throughout the audit process.

Independent Auditor’s Report (continued)


The way in which we scoped our response to the risks identifiedabovewasasfollows:

• we challenged the appropriateness of the various inputs used by management in their impairment calculations, andvalidatedthesetoexternalinformationwhereavailable.

• we assessed in detail management’s assumptions in respect of the amount of space identified as surplus to requirements; the potential income which could be earnedfromsub-lettingthisspace;andthepotentialtime to identify tenants.

• we evaluated the appropriateness of the principal actuarial assumptions used in the calculation of the retirement benefit obligation, using our own actuarial expertstomakeenquiriesoftheGroup’sactuaryastothe key assumptions made, and compared these to our knowledge of market practice.

• we evaluated the appropriateness and consistency of themethodologiesusedforthevaluationoftheGroup’sinvestment in Euroclear.

• we challenged management’s identification of outstanding legal cases and claims received, reviewed associated legal correspondence and obtained direct confirmationfromtheGroup’slegaladvisorsastotheadequacy of the level of provisions. We also tested the acknowledgement of any associated insurance recoverable.

• we evaluated management’s calculation of shares to be issued and deferred purchase consideration and challenged estimates of future earnings from acquisitions and discount rates used.

The Audit Committee’s consideration of these risks is set out on pages 46 to 47.

Opinions on other matters prescribed by the Companies Act 2006Inouropinion:

• the information given in the Strategic Report and the Directors’ Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

• the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006.

Other matters on which we are required to report by exception

Adequacy of explanations received and accounting recordsUnder the Companies Act 2006 we are required to report to youif,inouropinion:

• we have not received all the information and explanationswerequireforouraudit;or

• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns.

We have nothing to report in respect of these matters.

Directors’ remunerationUnder the Companies Act 2006 we are also required to report if, in our opinion, certain disclosures of directors’ remuneration have not been made or the part of the Directors’ Remuneration Report to be audited is not in agreement with the accounting records and returns. Under the Listing Rules we are required to review certain elements of the Directors’ Remuneration Report. We have nothing to report arising from these matters or our review.

Corporate Governance StatementUnder the Listing Rules we are also required to review the partoftheCorporateGovernanceStatementrelatingtotheCompany’s compliance with nine provisions of the UK CorporateGovernanceCode.Wehavenothingtoreportarising from our review.

Our duty to read other information in the Annual ReportUndertheInternationalStandardsonAuditing(UKandIreland),wearerequiredtoreporttoyouif,inouropinion,informationintheannualreportis:

• materially inconsistent with the information in the audited financial statements; or

• apparently materially incorrect based on, or materially inconsistent with, our knowledge of the group acquired in the course of performing our audit; or

• is otherwise misleading.

In particular, we are required to consider whether we have identified any inconsistencies between our knowledge acquired during the audit and the directors’ statement that they consider the annual report is fair, balanced and understandable and whether the annual report appropriately discloses those matters that we communicated to the audit committee which we consider should have been disclosed. We confirm that we have not identified any such inconsistencies or misleading statements.

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Respective Responsibilities of Directors and AuditorAsexplainedmorefullyintheDirectors’ResponsibilitiesStatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and expressanopiniononthefinancialstatementsinaccordance with applicable law and International Standards onAuditing(UKandIreland).ThosestandardsrequireustocomplywiththeAuditingPracticesBoard’sEthicalStandards for Auditors.

This report is made solely to the company’s members, as a body,inaccordancewithChapter3ofPart16oftheCompanies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s reportandfornootherpurpose.Tothefullestextentpermitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.Thisincludesanassessmentof:whethertheaccountingpoliciesareappropriatetotheGroup’scircumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read allthefinancialandnon-financialinformationintheAnnualReport to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Simon Hardy FCA (Senior Statutory Auditor) for and on behalf of Deloitte LLPChartered Accountants and Statutory Auditor London, United Kingdom 3 December 2013


Consolidated Income Statement52 week period ended 29 September 2013

52 weeks to 29 September

2013

52weeksto 30 September

2012

Note £’000 £’000

Continuing operationsRevenue 5 271,954 253,112Other operating income 3i 11,724 16,419

Total income 5&6 283,678 269,531

Staff costs 7 (148,974) (133,242)Redundancy costs 7 (4,795) (570)AdditionalFSCSlevy (1,107) (553)Onerous contracts provision 33 (6,232) –Amortisationofintangibleassets–clientrelationships 16 (12,520) (11,871)Other operating costs (83,418) (94,196)

Operatingexpenses (257,046) (240,432)

Operating profit 26,632 29,099 Financeincome 9 1,452 1,661 Other gains and losses 10 872 (74)Financecosts 9 (385) (803)

Profit before tax 6&8 28,571 29,883Tax 11 (7,297) (8,389)Profit for the period from continuing operations 21,274 21,494

Discontinued operationsLoss for the period from discontinued operations 13 – (3,092)

Profit for the period 21,274 18,402

Attributableto:Equity shareholders of the parent 21,274 18,402

21,274 18,402

Earnings per shareFromcontinuingoperationsBasic 15 8.5p 9.1p

Diluted 15 8.0p 8.6p

FromcontinuinganddiscontinuedoperationsBasic 15 8.5p 7.8p


71

Consolidated Statement of Comprehensive Income52 week period ended 29 September 2013

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ancial S

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2013


2012

Note £’000 £’000

Continuing operationsRevenue 5 271,954 253,112Other operating income 3i 11,724 16,419

Total income 5&6 283,678 269,531

Staff costs 7 (148,974) (133,242)Redundancy costs 7 (4,795) (570)AdditionalFSCSlevy (1,107) (553)Onerous contracts provision 33 (6,232) –Amortisationofintangibleassets–clientrelationships 16 (12,520) (11,871)Other operating costs (83,418) (94,196)

Operatingexpenses (257,046) (240,432)

Operating profit 26,632 29,099 Financeincome 9 1,452 1,661 Other gains and losses 10 872 (74)Financecosts 9 (385) (803)

Profit before tax 6&8 28,571 29,883Tax 11 (7,297) (8,389)Profit for the period from continuing operations 21,274 21,494

Discontinued operationsLoss for the period from discontinued operations 13 – (3,092)

Profit for the period 21,274 18,402


21,274 18,402

Earnings per shareFromcontinuingoperationsBasic 15 8.5p 9.1p


FromcontinuinganddiscontinuedoperationsBasic 15 8.5p 7.8p



2013


2012

Note £’000 £’000

Profit for the period 21,274 18,402Items that will not be reclassified subsequently to profit and loss:Actuarial loss on defined benefit pension scheme 27 (2,217) (5,063)Deferredtaxcreditonactuariallossondefinedbenefitpensionscheme 443 1,164

(1,774) (3,899)

Items that may be reclassified subsequently to profit and loss:Gainonrevaluationofavailable-for-saleinvestments 19 4,000 –Deferredtax(charge)/creditonrevaluationofavailable-for-saleinvestments (633) 167 Exchangedifferencesontranslationofforeignoperations 147 (196)

3,514 (29)Other comprehensive income/(expense) for the period 1,740 (3,928)

Total comprehensive income for the period 23,014 14,474


23,014 14,474

Consolidated Balance Sheet



As at 29 September

2013

As at 30 September

2012

Note £’000 £’000

ASSETSNon-current assetsIntangible assets 16 127,448 120,930 Property,plantandequipment 17 14,320 15,951Available-for-saleinvestments 19 10,000 6,013 Other receivables 20 1,353 2,215Deferredtaxasset 21 672 860

Total non-current assets 153,793 145,969Current assetsTrading investments 19 872 759Trade and other receivables 20 258,848 227,671 Cash and cash equivalents 22 136,987 71,827

Total current assets 396,707 300,257

Total assets 550,500 446,226

LIABILITIESCurrent liabilitiesBank overdrafts 23 3,153 243 Trade and other payables 24 289,884 248,555Currenttaxliabilities 2,880 2,249 Provisions 33 4,405 1,887Shares to be issued including premium 25 3,075 5,858

Total current liabilities 303,397 258,792

Net current assets 93,310 41,465Non-current liabilitiesRetirement benefit obligation 27 9,177 9,754Deferred purchase consideration 25 1,185 1,525Provisions 33 3,260 –Shares to be issued including premium 25 11,836 13,418

Total non-current liabilities 25,458 24,697

Total liabilities 328,855 283,489

Net assets 221,645 162,737

EQUITYCalled up share capital 28 2,712 2,469 Share premium account 28 133,341 124,271 Own shares 29 (12,734) (12,569)Revaluation reserve 7,652 4,285Merger reserve 61,380 22,950Profitandlossaccount 29,294 21,331

Equity attributable to equity holders of the parent 221,645 162,737

Approved by the Board of Directors and authorised for issue on 3 December 2013 Signed on its behalf by

D Nicol A Westenberger ChiefExecutive FinanceDirector

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Consolidated Statement of Changes in Equity52 week period ended 29 September 2013

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ancial S

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Attributable to the equity shareholders of the Parent

Called up share

capital

Share premium account

Own shares

Revaluation reserve

Merger reserve

Profit and loss account Total

£’000 £’000 £’000 £’000 £’000 £’000 £’000

Balance at 30 September 2011 2,405 116,028 (10,686) 4,118 22,950 19,970 154,785

Profitfortheperiod – – – – – 18,402 18,402Other comprehensive income for the period Deferredandcurrenttaxonother comprehensive income – – – 167 – 1,164 1,331 Actuarial loss on defined benefit pension scheme – – – – – (5,063) (5,063)Exchangedifferencesontranslationof foreign operations – – – – – (196) (196)

Total comprehensive income for the period – – – 167 – 14,307 14,474 Dividends – – – – – (16,887) (16,887)Issue of shares 64 8,243 – – – – 8,307Own shares acquired in the period – – (1,891) – – – (1,891)Ownsharesdisposedofonexerciseofoptions – – 8 – – (8) –Share-basedpayments – – – – – 3,852 3,852Taxonshare-basedpayments – – – – – 97 97


Profitfortheperiod – – – – – 21,274 21,274 Other comprehensive income for the period Deferredandcurrenttaxonother comprehensive income – – – (633) – 443 (190)Actuarial loss on defined benefit pension scheme – – – – – (2,217) (2,217)Revaluationofavailable-for-saleinvestments – – – 4,000 – – 4,000 Exchangedifferencesontranslationof foreign operations – – – – – 147 147

Total comprehensive income for the period – – – 3,367 – 19,647 23,014 Dividends – – – – – (18,077) (18,077)Issue of shares 243 9,070 – – 38,430 – 47,743 Own shares acquired in the period – – (165) – – – (165)Share-basedpayments – – – – – 6,135 6,135 Taxonshare-basedpayments – – – – – 258 258


Company Balance Sheet



As at 29 September

2013

As at 30 September

2012

Note £’000 £’000

ASSETSNon-current assetsInvestment in subsidiaries 18 191,699 186,194Other receivables 20 319 420

Total non-current assets 192,018 186,614

Current assetsTrade and other receivables 20 44,567 226 Cash and cash equivalents 22 136 829

Total current assets 44,703 1,055

Total assets 236,721 187,669

LIABILITIESCurrent liabilitiesTrade and other payables 24 10,671 12,611 Shares to be issued including premium 25 3,075 5,858

Total current liabilities 13,746 18,469

Net current assets/(liabilities) 30,957 (17,414)Non-current liabilitiesShares to be issued including premium 25 11,836 13,418

Total non-current liabilities 11,836 13,418

Total liabilities 25,582 31,887

Net assets 211,139 155,782

EQUITYCalled up share capital 28 2,712 2,469 Share premium account 28 133,341 124,271 Own shares 29 (12,734) (12,569)Merger reserve 61,665 23,235Profitandlossaccount 26,155 18,376

Equity attributable to equity holders 211,139 155,782

Approved by the Board of Directors and authorised for issue on 3 December 2013 Signed on its behalf by

D Nicol A Westenberger ChiefExecutive FinanceDirector

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Company Statement of Changes in Equity52 week period ended 29 September 2013

Fin

ancial S

tatem

ents

Attributable to the equity shareholders of the Company

Called up share

capital

Share premium account

Own shares

Merger reserve

Profit and loss account Total

£’000 £’000 £’000 £’000 £’000 £’000

Balance at 30 September 2011 2,405 116,028 (10,686) 23,235 15,087 146,069

Profitfortheperiod – – – – 16,332 16,332

Total comprehensive income for the period – – – – 16,332 16,332 Dividends – – – – (16,887) (16,887)Issue of shares 64 8,243 – – – 8,307Own shares acquired in the period – – (1,891) – – (1,891)Ownsharesdisposedofonexerciseof options – – 8 – (8) –Share-basedpayments – – – – 3,852 3,852


Profitfortheperiod – – – – 19,721 19,721

Total comprehensive income for the period – – – – 19,721 19,721 Dividends – – – – (18,077) (18,077)Issue of shares 243 9,070 – 38,430 – 47,743 Own shares acquired in the period – – (165) – – (165)Share-basedpayments – – – – 6,135 6,135


Consolidated Cash Flow Statement


52 week period ended 29 September 2013


2013


2012

Note £’000 £’000

Net cash inflow from operating activities 34 60,516 34,979

Cash flows from investing activities Purchaseofintangibleassets–clientrelationships (3,431) (6,878)Purchaseofintangibleassets–software (15,121) (16,356)Purchasesofproperty,plantandequipment (4,502) (7,412)Proceedsondisposalofavailable-for-saleinvestments 885 –Dividendreceivedfromavailable-for-saleinvestments 286 278

Netcashusedininvestingactivities (21,883) (30,368)

Cash flows from financing activities Dividends paid to equity shareholders 14 (18,077) (16,887)Purchaseofownshares 29 (165) (1,891)Proceedsonissueofshares 41,875 721 Netcashfrom/(usedin)financingactivities 23,633 (18,057)

Net increase/(decrease) in cash and cash equivalents 62,266 (13,446)

Cash and cash equivalents at the start of period 71,584 85,030

Effectofforeignexchangerates (16) –

Cash and cash equivalents at the end of period 133,834 71,584

Firm’scash 116,686 48,003Firm’soverdraft (3,153) (243)Firm’snetcash 113,533 47,760 Client settlement cash 20,301 23,824

Netcashandcashequivalents 133,834 71,584

Cash and cash equivalents shown in current assets 136,987 71,827Bank overdrafts (3,153) (243)

Netcashandcashequivalents 133,834 71,584

Forthepurposesofthecashflowstatement,netcashandcashequivalentsincludebankoverdrafts.

77

Company Cash Flow Statement52 week period ended 29 September 2013

Fin

ancial S

tatem

ents


2013


2012

Note £’000 £’000

Net cash (outflow)/inflow from operating activities 34 (24,491) 18,020

Cash flows from investing activities Investment in subsidiary company – (1,622)

Netcashusedininvestingactivities – (1,622)

Cash flows from financing activities Dividends paid to equity shareholders 14 (18,077) (16,887)Proceedsonissueofshares 41,875 721

Netcashusedinfinancingactivities 23,798 (16,166)

Net (decrease)/increase in cash and cash equivalents (693) 232

Cash and cash equivalents at the start of period 829 597

Cash and cash equivalents at the end of period 136 829


Notes to the Financial Statements

1. General information BrewinDolphinHoldingsPLCisacompanyincorporatedintheUnitedKingdomundertheCompaniesAct.Theaddressoftheregisteredofficeisgivenonpage123.ThenatureoftheGroup’soperationsanditsprincipalactivitiesaresetoutintheNarrativeReports.TheCompanyisregisteredinEnglandandWales.

These financial statements are presented in pounds sterling because that is the currency of the primary economic environmentinwhichtheGroupoperates.Foreignoperationsareincludedinaccordancewiththepoliciessetoutinnote 3.

2. Adoption of new and revised standards In the current year, the following new and revised Standards and Interpretations have been adopted and have affected the amounts reported in these financial statements.

Standards affecting the financial statements

AmendmentstoIAS1Presentation offinancialstatements(amendedJune2011)

TheGrouphasappliedtheamendmentstoIAS1titled‘PresentationofItemsofOtherComprehensiveIncome’inadvanceoftheeffectivedate(annualperiodsbeginningonorafter1July2012.)Theamendmentincreasestherequiredlevelofdisclosure within the statement of comprehensive income.

The impact of this amendment has been to analyse items within the statement of comprehensive income between items that will not be reclassified subsequently to profit or loss and items that will be reclassified subsequently to profit or loss in accordancewiththerespectiveIFRSstandardtowhichtheitemrelates.Thefinancialstatementshavealsobeenamendedtoanalyseincometaxonthesamebasis. The amendments have been applied retrospectively, and hence the presentation of items of comprehensive income have restated to reflect the change. Other than the above mentioned presentation changes, the application of the amendments to IAS 1 do not result in any impact on profit or loss, comprehensive income and total comprehensive income.

AnnualImprovementstoIFRSs:2009-2011Cycle

The amendments impact the following standards which are applicable to the Group:

• IFRS1First-timeAdoptionofInternationalFinancialReportingStandards• IAS1PresentationofFinancialStatements• IAS16Property,PlantandEquipment• IAS32FinancialInstruments:Presentation• IAS34InterimFinancialReporting

Newstandards,amendmentsandinterpretationsissuedbutnoteffectiveandyettobeendorsedbytheEUareasfollows:

IFRS9 FinancialInstrumentsIFRS10 ConsolidatedFinancialStatementsIFRS10,IFRS12and IAS27(amended)

Investment entities

IFRS11 Joint ArrangementsIFRS12 Disclosure of Interests in Other EntitiesIAS27(revised) SeparateFinancialStatementsIAS28(revised) Investments in Associates and Joint VenturesTransitionGuidance TransitionGuidance(AmendmentstoIFRS10,IFRS11andIFRS12)IFRIC21 LeviesAmendments to IAS 36 RecoverableAmountDisclosuresforNon-FinancialAssetsAmendments to IAS 39 NovationofDerivativesandContinuationofHedgeAccounting(Amendmentsto

IAS39FinancialInstruments:RecognitionandMeasurement)

Newstandards,amendmentsandinterpretationsissuedbutnoteffectiveandhavebeenendorsedbytheEUareasfollows:

IFRS7(amended) Disclosures–OffsettingFinancialAssetsandFinancialLiabilitiesIAS32(amended) OffsettingFinancialAssetsandFinancialLiabilities

TheGroupiscurrentlyreviewingtheimpactofthesenewstandards,amendmentsandinterpretationsbutdoesnotintendto adopt the standards early.

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2. Adoption of new and revised standards (continued)IFRS13willapplytoalltransactionsandbalances(whetherfinancialornon-financial)fromwhichIFRSsrequireorpermitjointvaluemeasurement,withtheexceptionof:

• share–basedpaymenttransactionswithinthescopeofIFRS2Share-basedPayment• leasingtransactionswithinthescopeofIAS17Leases.• measurementsthathavesimilaritiestofairvaluebutarenotfairvalue,suchasnetrealisableinIAS2Inventoriesor

value in use in IAS 36 Impairment of Assets.

IAS19(revised2011)willimpactthemeasurementofthevariouscomponentsrepresentingmovementsinthedefinedbenefitpensionobligationandassociateddisclosures,butnottheGroup’stotalobligation.TheamendmentstoIAS19(revised2011),ifappliedfortheyearended29September2013,wouldreduceprofitaftertaxbyapproximately £130,000andincreaseactuariallossesinothercomprehensiveincomebythesameamount.Therewouldbenoeffect on total equity.

3. Significant accounting policies a. Basis of accounting

ThefinancialstatementsofboththeGroupandtheCompanyhavebeenpreparedinaccordancewithInternationalFinancialReportingStandards(IFRSs)adoptedbytheEuropeanUnionandthereforetheGroupfinancialstatementscomply with Article 4 of the EU IAS Regulation.

Thefinancialstatementshavebeenpreparedonthehistoricalcostbasis,exceptfortherevaluationofcertainfinancialinstruments.Historicalcostisgenerallybasedonthefairvalueoftheconsiderationgiveninexchangefortheassets.The principal accounting policies adopted are set out below.

b. Basis of consolidationTheconsolidatedfinancialstatementsincorporatethefinancialstatementsofBrewinDolphinHoldingsPLCandallitssubsidiary undertakings.

The acquisition method of accounting has been adopted. Under this method, the results of subsidiary undertakings acquired during the period are included in the consolidated income statement from the date of acquisition.

Wherenecessary,adjustmentsaremadetothefinancialstatementsofsubsidiariestobringtheaccountingpoliciesusedintolinewiththoseusedbytheGroup.

Allintra-grouptransactions,balances,incomeandexpensesareeliminatedonconsolidation.

In the Company’s accounts investments in subsidiary undertakings are stated at cost less any provision for impairment.

InaccordancewithSection408oftheCompaniesAct2006BrewinDolphinHoldingsPLChastakenadvantageofthe legal dispensation not to present its own statement of comprehensive income or income statement. The amount of the profit for the financial period dealt with in the financial statements of the Company is disclosed in note 12 to the financial statements.

c. Going concern Thedirectorshave,atthetimeofapprovingthefinancialstatements,areasonableexpectationthattheCompanyandtheGrouphaveadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.Thustheycontinuetoadoptthegoingconcernbasisofaccountinginpreparingthefinancialstatements.FurtherdetailiscontainedintheStrategic Report.

d. Business combinationsAcquisitions of subsidiaries and businesses are accounted for using the acquisition method. The consideration for eachacquisitionismeasuredattheaggregateofthefairvalues(atthedateofexchange)ofassetsgiven,liabilitiesincurredorassumed,andequityinstrumentsissuedbytheGroupinexchangeforcontroloftheacquiree.Acquisition-relatedcostsarerecognisedintheincomestatementasincurred.

Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent considerationarrangement,measuredatitsacquisition-datefairvalue.Subsequentchangesinsuchfairvaluesareadjustedagainstthecostofacquisitionwheretheyqualifyasmeasurementperiodadjustments(seebelow).Allothersubsequent changes in the fair value of contingent consideration classified as an asset or liability are accounted for in accordancewithrelevantIFRSs.Changesinthefairvalueofcontingentconsiderationclassifiedasequityarenotrecognised.

Whereabusinesscombinationisachievedinstages,theGroup’spreviously-heldinterestsintheacquiredentityareremeasuredtofairvalueattheacquisitiondate(i.e.thedatetheGroupattainscontrol)andtheresultinggainorloss,if any, is recognised in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that


Notes to the Financial Statements (continued)

have previously been recognised in other comprehensive income are reclassified to profit or loss, where such treatment would be appropriate if that interest were disposed of.

The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3(2008)arerecognisedattheirfairvalueattheacquisitiondate,exceptthat:

• deferredtaxassetsorliabilitiesandliabilitiesorassetsrelatedtoemployeebenefitarrangementsarerecognisedandmeasuredinaccordancewithlAS12IncomeTaxesandlAS19EmployeeBenefitsrespectively;

• liabilitiesorequityinstrumentsrelatedtothereplacementbytheGroupofanacquiree’sshare-basedpaymentawardsaremeasuredinaccordancewithIFRS2Share-basedPayment;and

• assets(ordisposalgroups)thatareclassifiedasheldforsaleinaccordancewithIFRS5Non-currentAssetsHeldfor Sale and Discontinued Operations are measured in accordance with that Standard.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combinationoccurs,theGroupreportsprovisionalamountsfortheitemsforwhichtheaccountingisincomplete.Thoseprovisionalamountsareadjustedduringthemeasurementperiod(seebelow),oradditionalassetsorliabilitiesarerecognised,toreflectnewinformationobtainedaboutfactsandcircumstancesthatexistedasoftheacquisitiondate that, if known, would have affected the amounts recognised as of that date.

ThemeasurementperiodistheperiodfromthedateofacquisitiontothedatetheGroupobtainscompleteinformationaboutfactsandcircumstancesthatexistedasoftheacquisitiondate,andissubjecttoamaximumofone year.

e. Transaction date accountingAll securities transactions entered into on behalf of clients are recorded in the accounts on the date of the transaction. TheunderlyinginvestmentsarenotshowninthefinancialstatementsoftheGroup.

f. Foreign currenciesFinancialstatementsoftheGroupandtheCompanyarepresentedinthecurrencyoftheprimaryeconomicenvironmentinwhichitoperates(itsfunctionalcurrency).Forthepurposeoftheconsolidatedfinancialstatements,theresultsandfinancialpositionoftheGroupandtheCompanyareexpressedinpoundsterling,whichisthefunctionalcurrencyoftheGroupandtheCompanyandthepresentationcurrencyfortheconsolidatedfinancialstatements.

In preparing the financial statements of the individual companies, transactions in currencies other than the entity’s functionalcurrency(foreigncurrencies)arerecognisedattheratesofexchangeprevailingonthedatesofthetransactions. At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies areretranslatedattheratesprevailingatthatdate.Non-monetaryitemscarriedatfairvaluethataredenominatedinforeigncurrenciesaretranslatedattheratesprevailingatthedatewhenthefairvaluewasdetermined.Non-monetaryitems that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchangedifferencesarerecognisedinprofitorlossintheperiodinwhichtheyarise.

Forthepurposeofpresentingconsolidatedfinancialstatements,theassetsandliabilitiesoftheGroup’sforeignoperationsaretranslatedatexchangeratesprevailingonthebalancesheetdate.Incomeandexpenseitemsaretranslatedattheaverageexchangeratesfortheperiod,unlessexchangeratesfluctuatesignificantlyduringthatperiod,inwhichcasetheexchangeratesatthedateoftransactionsareused.Exchangedifferencesarising,ifany,are recognised in other comprehensive income and accumulated in equity.

g. Revenue recognition Revenue is measured at the fair value of the consideration received or receivable and represents gross commission, investmentmanagementfees,renewalcommissionsandcorporateadvisoryandbrokingretainers(receivableuntilthedisposaloftheCorporateandAdvisorybusinesson1February2012),otherfeesplusotherincome,excludingVAT, receivable in respect of the period.

Investmentmanagementfees,renewalcommissionsandcorporateadvisoryandbrokingretainers(receivableuntilthedisposaloftheCorporateandAdvisorybusinesson1February2012)arerecognisedintheperiodinwhichtherelated service is provided and investment management commissions are recognised when the transaction is performed.

RevenuefortheCorporateandAdvisorybusinesswhichwasdisposedofon1February2012isincludedintheanalysis for discontinued operations.

Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable,whichistheratethatexactlydiscountsestimatedfuturecashreceiptsthroughtheexpectedlifeofthefinancial asset to that asset’s net carrying amount.

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3. Significant accounting policies (continued)Dividend income from investments is recognised when the shareholders’ rights to receive payment have been established.

Dividendsreceivedandreceivablearecreditedtotheincomestatementtotheextentthattheyrepresentarealisedprofit and loss for the Company.

h. Operating profitOperatingprofitisstatedasbeingprofitbeforefinanceincome,financecosts,othergains/lossesandtax.

i. Other operating incomeInterestreceivableandpayableonclientfreemoneybalancesisnettedtocalculatetheGroup’sshareofinterestreceivable and included under the heading “Other operating income”.

j. Cash and cash equivalentsCash and cash equivalents comprise cash at bank and bank overdrafts.

k. LeasesRentalsonoperatingleasesarechargedtotheincomestatementonastraight-linebasisovertheleaseterm,exceptwhere another more systematic basis is more representative of the time pattern in which economic benefits from the lease are consumed.

Benefits received and receivable as an incentive to enter into an operating lease are recognised as a liability. The aggregatebenefitofincentivesisspreadonastraight-linebasisovertheleaseterm,exceptwhereanothersystematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

l. Share-based paymentsEquity-settledshare-basedpaymentstoemployeesaremeasuredatfairvalueoftheequityinstrumentsatthedateofgrant.Thefairvalueexcludestheeffectofnonmarket-basedvestingconditions.Detailsregardingthedeterminationofthefairvalueofequity–settledshare-basedtransactionsaresetoutinnote30.

FairvalueismeasuredbyuseofaBlack-Scholesoptionpricingmodel.Theexpectedlifeusedinthemodelhasbeenadjusted,basedonmanagement’sbestestimate,fortheeffectsofnon-transferability,exerciserestrictions,andbehavioural considerations.

Thefairvaluedeterminedatthegrantdateoftheequity-settledshare-basedpaymentsisexpensedonastraight-linebasisoverthevestingperiod,basedontheGroup’sestimateofsharesthatwilleventuallyvest.Ateachbalancesheetdate,theGrouprevisesitsestimateofthenumberofequityinstrumentsexpectedtovestasaresultoftheeffectofnon-marketbasedvestingconditions.Theimpactoftherevisionoftheoriginalestimates,ifany,isrecognisedinprofitorlosssuchthatthecumulativeexpensereflectstherevisedestimate,withacorrespondingadjustmenttoequityreserves.

m. TaxationThetaxexpenserepresentsthesumofthetaxcurrentlypayableanddeferredtax.

Current taxThetaxcurrentlypayableisbasedontaxableprofitfortheyear.Taxableprofitdiffersfromnetprofitasreportedintheincomestatementbecauseitexcludesitemsofincomeorexpensesthataretaxableordeductibleinotheryearsanditfurtherexcludesitemsthatarenevertaxableordeductible.TheGroup’sliabilityforcurrenttaxiscalculatedusingtaxratesthathavebeenenactedorsubstantivelyenactedbythebalancesheetdate.

Deferred taxDeferredtaxisthetaxexpectedtobepayableorrecoverableondifferencesbetweenthecarryingamountsofassetsandliabilitiesinthefinancialstatementsandthecorrespondingtaxbasesusedinthecomputationoftaxableprofit,andisaccountedforusingthebalancesheetliabilitymethod.Deferredtaxliabilitiesaregenerallyrecognisedforalltaxabletemporarydifferencesanddeferredtaxassetsarerecognisedtotheextentthatitisprobablethattaxableprofits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are notrecognisedifthetemporarydifferencearisesfromgoodwillorfromtheinitialrecognition(otherthaninabusinesscombination)ofotherassetsandliabilitiesinatransactionthataffectsneitherthetaxableprofitnortheaccountingprofit.

Thecarryingamountofdeferredtaxassetsisreviewedateachbalancesheetdateandreducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitswillbeavailabletoallowallorpartoftheassettoberecovered.

Deferredtaxiscalculatedatthetaxratesthatareexpectedtoapplyintheperiodwhentheliabilityissettledortheassetisrealisedbasedontaxlawsandratesthathavebeensubstantivelyenactedatthebalancesheetdate.



Deferredtaxischargedorcreditedintheincomestatement,exceptwhenitrelatestoitemschargedorcreditedinothercomprehensiveincome,inwhichcasethedeferredtaxisalsodealtwithinothercomprehensiveincome.

DeferredtaxassetsandliabilitiesareoffsetwhenthereisalegallyenforceablerighttosetoffcurrenttaxassetsagainstcurrenttaxliabilitiesandwhentheyrelatetoincometaxesleviedbythesametaxationauthorityandtheGroupintendstosettleitscurrenttaxassetsandliabilitiesonanetbasis.

n. Intangible assets i) Goodwill

Goodwillrepresentstheexcessofthesumoftheconsiderationtransferred,theamountofanynon-controllinginterestintheacquireeandthefairvalueoftheacquirer’spreviouslyheldequityinterest(ifany)intheentityoverthenetoftheidentifiableassetsandliabilitiesatthedateofacquisition.Goodwillisinitiallyrecognisedasanassetatcostandissubsequentlymeasuredatcostlessanyaccumulatedimpairmentlosses.Goodwillwhichisrecognised as an asset is reviewed for impairment at least annually. Any impairment is recognised immediately in the income statement and is not reversed in a subsequent period.

Elements of the total sum of the consideration of an acquisition may be deferred or contingent. In such cases the cost of the acquisition indicates the Company’s best estimate of the future consideration likely to be made, discountedtopresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoney,andisrevisedateachbalancesheetdate,potentiallyleadingtoadjustmentsintheincomestatement.Suchdeferredorcontingentconsiderationmaybesettledinshares(seenote3(s)).

On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

ii) Client relationshipsIntangible assets classified as “client relationships” are recognised when acquired as part of a business combination or when separate payments are made to acquire funds under management by adding teams of investment managers. Client relationships are initially recognised at cost and are subsequently measured at cost less accumulated amortisation and any accumulated impairment losses. If acquired as part of a business combination the initial cost of client relationships is the fair value at the acquisition date.

When separate payments are made to acquire funds under management by adding teams of investment managers, elements of the total consideration may be deferred or contingent. In such cases the cost of the recognised client relationships includes the Company’s best estimate of the future consideration likely to be made,discountedtopresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetime value of money, and is revised at each balance sheet date. Such deferred or contingent consideration may besettledinshares(seenote 3(s)).

Client relationships are amortised over seven to fifteen years, their minimum estimated useful lives.

iii) Computer softwareComputer software which is not an integral part of the related hardware is classified as an intangible asset. Costs of acquiring computer software are treated as an intangible asset and amortised over four to ten years, dependentupontheassessmentoftheexpectedusefullifeofthesoftware,onastraightlinebasisfromthedatethe software comes into use.

Computer software developed internally is separately identified and recognised as an intangible asset if it is part ofaspecificallyauthorisedprojectwhichwillgiveprobablefutureeconomicbenefitsoveraperiodandisamortised over four to ten years on a straight line basis from the date the software comes into use, dependent ontheassessmentoftheexpectedusefullifeofthesoftware.

Theassessmentoftheexpectedusefullifeofcomputersoftwareisbasedonthecontractualtermsorwhereappropriatepastexperienceofthelifeofsimilarassets.

o. Property, plant and equipment Property,plantandequipmentisstatedatcostlessaccumulateddepreciationandanyrecognisedimpairment.Depreciation has been provided on the basis of equal annual instalments to write off the cost less estimated residual valuesoftangiblefixedassetsovertheirestimatedusefullivesasfollows:

Computer equipment 3 to 4 yearsOffice equipment 4 to 10 yearsLeasehold improvements to first break clause of leaseMotor vehicles 5years

The gain or loss arising on the disposal or scrappage of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

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3. Significant accounting policies (continued) p. Financial assets

All financial assets are recognised and derecognised on trade date, where a purchase or sale of an investment is under a contract whose terms require delivery of the financial asset within the timeframe established by the market concerned,andareinitiallymeasuredatfairvalue,plustransactioncosts,exceptforthosefinancialassetsclassifiedas at fair value through profit or loss, which are initially measured at fair value.

Financialassetsareclassifiedintothefollowingspecifiedcategories:financialassets‘atfairvaluethroughprofitorloss’(FVTPL),‘heldtomaturity’investments,‘available-for-sale’financialassetsand‘loansandreceivables’.Theclassification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.

Financial assets at FVTPLFinancialassetsareclassifiedasatFVTPLwherethefinancialassetisheld-for-tradingoritisdesignatedasatFVTPL.Afinancialassetisclassifiedasheld-for-tradingifithasbeenacquiredprincipallyforthepurposeofsellinginthenearfuture.

FinancialassetsatFVTPLarestatedatfairvalue,withanyresultantgainorlossonremeasurementrecognisedinprofit or loss. The net gain or loss recognised in profit or loss incorporate any dividends or interest earned on the financialassetandisincludedinthe‘othergainsandlosses’lineitemintheincomestatement.Theirvalueisdetermined in the manner described in note 19.

Available-for-sale financial assets (AFS) CertainsharesheldbytheGroupareclassifiedasbeingavailable-for-saleandarestatedatfairvalue.Fairvalueisdeterminedinthemannerdescribedinnote19.Gainsandlossesarerecogniseddirectlyinothercomprehensiveincomeandaccumulatedintherevaluationreservewiththeexceptionofimpairmentlosseswhicharerecogniseddirectly in profit or loss. Where the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously recognised in the revaluation reserve is reclassified to profit or loss.

DividendsonAFSequityinstrumentsarerecognisedinprofitandlosswhentheGroup’srighttoreceivepaymentisestablished.

Loans and receivablesTradereceivables,loans,andotherreceivablesthathavefixedordeterminablepaymentsandarenotquotedinanactive market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Interest income is recognised by applying the effective interest rate,exceptforshort-termreceivableswhentherecognitionofinterestwouldbeimmaterial.

Impairment of financial assetsFinancialassets,otherthanthoseatFVTPL,areassessedforindicatorsofimpairmentateachbalancesheetdate.Financialassetsareimpairedwherethereisobjectiveevidencethat,asaresultofoneormoreeventsthatoccurredafter the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets.

ForlistedandunlistedequityinvestmentsclassifiedasAFS,asignificantorprolongeddeclineinthefairvalueofthesecuritybelowitscostisconsideredtobeobjectiveevidenceoftheimpairment.

WhenanAFSfinancialassetisconsideredtobeimpaired,cumulativegainsorlossespreviouslyrecognisedinothercomprehensive income are reclassified to profit or loss in the period. In subsequent periods if the amount of impaired lossdecreases,inrespectofAFSequitysecurities,impairmentlossespreviouslyrecognisedinprofitorlossarenotreversed through profit or loss. Any increase in fair value subsequent to an impairment loss is recognised in other comprehensive income.

q. Financial liabilities and equityFinancialliabilitiesandequityareclassifiedaccordingtothesubstanceofthecontractualarrangementsenteredinto.

Equity instrumentsEquity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.

Financial liabilities at FTVPLFinancialliabilitiesareclassifiedaseitherfinancialliabilities‘atFVTPL’or‘otherfinancialliabilities’.FinancialliabilitiesareclassifiedasatFVTPLwherethefinancialliabilityiseitherheldfortradingoritisdesignatedasatFVTPL.

FinancialliabilitiesatFVTPLarestatedatfairvalue,withanygainsorlossesarisingonremeasurementrecognisedinprofit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability andisincludedinthe‘othergainsandlosses’lineitemintheincomestatement.Fairvalueisdeterminedinthemanner described in note 19.



Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expenserecognisedonaneffectiveyieldbasis.

r. Netting of balancesAmounts due to and from counterparties due to settle on balance are shown net where there is a currently enforceable legal right to set off the recognised amounts and an operational intention to settle net. Amounts due to and from counterparties due to settle against delivery of stock are shown gross.

s. Shares to be issued including premiumShares to be issued represent the Company’s best estimate of the amount of ordinary shares in the Company, which are likely to be issued following business combinations or the acquisition of client relationships which involve deferred paymentsintheCompany’sshares.Thesumisdiscountedtopresentvalueusingapre-taxdiscountratethatreflectscurrent market assessments of the time value of money and is revised annually in the light of actual results. The resulting interest charge from the unwind of the discount is included within finance costs. Where shares are due to be issued within a year then the sum is included in current liabilities. Where the team of investment managers, bringing withthemfundsundermanagement,havenotyetjoinedandtheclientrelationshipsassetshavenotbeenbroughtinto use, the resultant liability is shown as an amount contracted for but not provided in the accounts.

t. Retirement benefit costsPaymentstodefinedcontributionretirementbenefitschemesarechargedasanexpenseastheyfalldue.Paymentsmadetostate-managedretirementbenefitschemesaredealtwithaspaymentstodefinedcontributionschemeswheretheGroup’sobligationsundertheschemesareequivalenttothosearisinginadefinedcontributionretirementbenefit scheme.

Fordefinedbenefitretirementbenefitschemes,thecostofprovidingbenefitsisdeterminedusingtheProjectedUnit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised in full in the period in which they occur. They are recognised outside the profit or loss and presented in other comprehensive income.

Pastservicecostisrecognisedimmediatelytotheextentthatthebenefitsarealreadyvested,andotherwiseisamortisedonastraight-linebasisovertheaverageperioduntilthebenefitsbecomevested.

The retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit obligation,asadjustedforunrecognisedpastservicecost,andasreducedbythefairvalueofschemeassets.Anyasset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the scheme.

u. Impairment of tangible and intangible assetsAteachbalancesheetdate,theGroupreviewsthecarryingamountsofitstangibleandintangibleassetstodetermine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists,therecoverableamountoftheassetisestimatedinordertodeterminetheextentoftheimpairmentloss(ifany).Goodwillistestedforimpairmentatleastannuallyandwheneverthereisanindicationthatitmaybeimpaired.Wheretheassetdoesnotgeneratecashflowsthatareindependentfromotherassets,theGroupestimatestherecoverableamountofthecash-generatingunittowhichtheassetbelongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarket assessments of the time value of money and the risks specific to the asset for which the estimates of future cashflowshavenotbeenadjusted.

Forthepurposesofimpairmenttesting,clientrelationshipsandgoodwillareallocatedtoeachoftheGroup’scash-generatingunits.Fairvalueisestablishedbyvaluingclients’fundsundermanagementineachofthecash-generatingunitsbasedonthevalueoffundsundermanagementattheperiodend;thepercentagesof funds being used depending on values attributed in recent public transactions for the purchase of advisory and discretionaryfunds.Ifthecarryingamountrelatingtoanycash-generatingunitexceedsthecalculatedfairvaluelesscosts to sell, a value in use is calculated using a discounted cash flow method. If the recoverable amount of the cash-generatingunitislessthanthecarryingamountoftheunit,theimpairmentlossisallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtotheunitandthentotheotherassetsoftheunitpro-rataonthebasisofthe carrying amount of each asset in the unit.

If the recoverable amount of any asset other than client relationships or goodwill is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognisedasanexpenseimmediately,unlesstherelevantassetiscarriedatarevaluedamount,inwhichcasetheimpairment loss is treated as a revaluation decrease.

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3. Significant accounting policies (continued) v. Provisions

ProvisionsarerecognisedwhentheGrouphasapresentobligation(legalorconstructive)asaresultofapastevent,anditisprobablethattheGroupwillberequiredtosettlethatobligationandareliableestimatecanbemadeoftheamount of the obligation.

Provisionsaremeasuredatthedirectors’bestestimateoftheexpenditurerequiredtosettletheobligationatthebalance sheet date, taking into account the risks and uncertainties surrounding the obligation and are discounted to present value where the effect is material.

Wheresomeoralloftheeconomicbenefitsrequiredtosettleaprovisionareexpectedtoberecoveredfromathirdparty, a receivable is recognised as an asset if it is virtually certain that the reimbursement will be received and the amount receivable can be measured reliably.

Presentobligationsarisingunderonerouscontractsarerecognisedandmeasuredasprovisions.AnonerouscontractisconsideredtoexistwheretheGrouphasacontractunderwhichtheunavoidablecostsofmeetingtheobligationsunderthecontractexceedtheeconomicbenefitsexpectedtobereceivedunderit.

4. Critical accounting judgements and key sources of estimation uncertaintyTheGroupmakesestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesandprofitsandlosses.Evaluationoftheaccountingjudgementstakesintoaccounthistoricalexperienceaswellasfutureexpectations.

Retirement benefit obligationInconjunctionwiththeGroup’sActuary,theGroupmakesestimatesaboutarangeoflongtermtrends,includinglifeexpectancy.TheseestimatesaregovernedbytherulessetoutinIAS19EmployeeBenefitswhichcanleadtosignificantswings in the pension deficit from year to year, as long term interest rates change and short term market movements affect asset valuations. The detailed assumptions are set out in note 27.

Shares to be issued including premium and deferred purchase considerationTheGroupincludeswithintheseheadingsitsbestestimatediscountedtopresentvalueoftheultimatesumwhichwillbepaidforbusinessesorclientrelationshipsunderdeferredpurchaseagreements.Thisisinevitablyjudgementalanddepends on events which transpire over periods up to five years. Market conditions are an important factor.

Impairment of goodwill and client relationshipsForthepurposesofimpairmenttesting,theGroupvaluesgoodwillandclientrelationshipsbasedonthevaluationofindividualunitsmakinguptherelevantintangibleasset.Foraninvestmentmanagementbusinessthisisnormallybasedon the value of funds under management at the period end; the percentages of funds being used depending on values attributed in recent public transactions for the purchase of advisory and discretionary funds. A price earnings basis is used where more appropriate.

Valuation of investment in Euroclear plcThefairvaluationoftheGroup’sinvestmentinEuroclearplctakesintoaccountanumberofdifferentvaluationmethodsincluding dividend yield.

Onerous contracts provisionsTheGrouphasmadeabestestimatediscountedtopresentvalueofthelikelycostsofonerouscontracts,allowingforsublease income where the provision is in relation to premises and it is more likely than not that the premises will be sublet.



5. Revenue

2013 £’000

2012 £’000

52 weeks 52weeks

Continuing operationsInvestment management commission income 93,451 83,982Financialplanningandtrailincome 26,469 38,561Investment management fees 152,034 130,569

271,954 253,112Other operating income 11,724 16,419

Revenue from continuing operations 283,678 269,531Discontinued operationsCorporateAdvisory&BrokingDivision(seenote13) – 1,235

Total revenue from continuing and discontinued operations 283,678 270,766

6. Segmental informationFormanagementpurposestheGroupcurrentlyhasonebusinessdivision:InvestmentManagement.ThisformsthereportablesegmentoftheGroupfortheperiod.

Duringthe52weekperiodended30September2012,theGrouphadonebusinessdivisionfrom2February2012:InvestmentManagement.Priorto2February2012,ithadtwobusinessdivisions:InvestmentManagementandCorporateAdvisoryandBrokingwhichwasdiscontinued(seenote13).

TheGroup’soperationsarecarriedoutintheUnitedKingdom,ChannelIslandsandtheRepublicofIreland.Incomegenerated in the Republic of Ireland is reported as part of the Investment Management business division. All segment incomerelatestoexternalclients.

TheaccountingpoliciesoftheoperatingsegmentsarethesameasthoseoftheGroup.

52 week period ended 29 September 2013

Investment Management

£’000

Total income 283,678

Operatingprofitbeforeredundancycosts,additionalFSCSlevy,onerouscontractsprovisionand amortisation of client relationships 51,286 AdditionalFSCSlevy (1,107)Onerous contracts provision (6,232)Redundancy costs (4,795)Amortisation of client relationships (12,520)

Operating profit 26,632 Financeincome(net) 1,067 Other gains and losses 872

Profitbeforetax 28,571

Other Information Capitalexpenditure 19,623 Depreciation 5,569 Amortisationofintangibleasset–software 3,021 Share-basedpayments 6,135

Segmentassetsexcludingcurrenttaxassets 550,500 Segmentliabilitiesexcludingcurrenttaxliabilities 325,975

Net financing –Dividendspaid

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6. Segmental information (continued)

52weekperiodended30September2012

Continuing operations

Discontinued operations

Investment Management

Corporate Advisory &

Broking Group £’000 £’000 £’000

Total income 269,531 1,235 270,766

Operatingprofitbeforeredundancycosts,additionalFSCSlevy, onerous contracts provision and amortisation of client relationships 42,093 (2,317) 39,776 AdditionalFSCSlevy (553) – (553)Redundancy costs (570) (47) (617)Amortisation of client relationships (11,871) – (11,871)

Operatingprofit/(loss) 29,099 (2,364) 26,735Financeincome(net) 858 – 858Other gains and losses (74) – (74)Costs of separation – (1,143) (1,143)

Profit/(loss)beforetax 29,883 (3,507) 26,376

Other Information Capitalexpenditure 23,768 – 23,768Depreciation 7,174 40 7,214 Amortisationofintangibleasset–software 3,563 – 3,563Share-basedpayments 3,852 – 3,852

–Segmentassetsexcludingcurrenttaxassets 446,226 – 446,226 Segmentliabilitiesexcludingcurrenttaxliabilities 281,240 – 281,240

7. Staff costs and related party transactionsGroupContinuing and discontinued operations

2013 52 weeks

2012 52weeks

No. No.TheaveragemonthlynumberofemployeesincludingDirectorsbycategorywas:Investment Management 1,127 1,103 Corporate Advisory & Broking – 20 Business Support 833 787

1,960 1,910

Continuing Operations Discontinued Operations Total

2013 2012 2013 2012 2013 201252 weeks 52weeks 52 weeks 52weeks 52 weeks 52weeks

£’000 £’000 £’000 £’000 £’000 £’000

The aggregate payroll costs were asfollowsincludingDirectors: Wages and salaries 115,686 107,597 – 1,576 115,686 109,173 Social security costs 16,443 13,104 – 196 16,443 13,300 Share-basedpayments 6,135 3,852 – – 6,135 3,852Terminationbenefits–redundancycosts 4,795 570 – 47 4,795 617 Other pension costs 10,710 8,689 – 62 10,710 8,751

153,769 133,812 – 1,881 153,769 135,693

TheCompanydoesnothaveanyemployees(2012:none).



7. Staff costs and related party transactions (continued) Remuneration of key management personnel

Theremunerationofthedirectors,whoarethekeymanagementpersonneloftheGroup,issetoutintheDirectors’Remuneration Report on page 49.

Directors’ transactionsMaterial contracts with Directors and loans to Directors are shown in the Directors’ Remuneration Report on page 60; there are no other related party transactions with Directors.

8. Profit for the periodProfitfortheperiodhasbeenarrivedataftercharging/(crediting):


2013 2012 2013 2012 2013 201252 weeks 52weeks 52 weeks 52weeks 52 weeks 52weeks

£’000 £’000 £’000 £’000 £’000 £’000

Netforeignexchangegains (879) (749) – – (879) (749)Depreciation of property, plant andequipment(note17) 5,569 7,174 – 40 5,569 7,214 Amortisation of intangible assets –clientrelationships(note16) 12,520 11,871 – – 12,520 11,871Amortisation of intangible assets –software(note16) 3,021 3,563 – – 3,021 3,563Staffcosts(note7) 153,769 133,812 – 1,881 153,769 135,693Otherpensioncosts(note7) – Definedbenefitscheme–including death in service contributions 1,190 1,089 – 49 1,190 1,138Defined contribution scheme 9,520 7,600 – 13 9,520 7,613

Impairment loss recognised onavailable-for-saleequityinvestments(note10) 13 74 – – 13 74 Reversal of impairment of trade receivables(note20) (11) (206) – – (11) (206)Auditor’s remuneration (seeanalysisbelow) 430 473 – – 430 473

2013 52 weeks

2012 52weeks

£’000 £’000 £’000 £’000

Analysis of auditor’s remunerationFeespayabletotheCompany’sauditorfortheauditoftheCompany’s annual accounts 57 55FeespayabletotheCompany’sauditorandtheirassociatesforotherservicestotheGroup:theauditoftheCompany’ssubsidiaries pursuant to legislation 201 195Other services pursuant to legislation

Interim review 40 40 Regulatory assurance work 57 45

97 85Taxservices – –Information technology services – –Corporate finance services – –Other servicesAssuranceservicesforexternalparties 13 78AAF01/06–controlsassurancereport 62 60

75 138

430 473

DetailsoftheGroup’spolicyontheuseoftheauditorfornon-auditservicesissetoutintheAuditCommitteeReportonpage 47.

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9. Finance income and finance costs2013

52 weeks2012

52weeks £’000 £’000

Finance incomeDividendsfromavailable-for-saleinvestments 436 278Interest on bank deposits 1,016 1,383

1,452 1,661

Finance costsFinancecostofdeferredconsideration 149 192 Interestexpenseondefinedpensionobligation 201 581Unwinding of discount on provisions 18 –Interest on bank overdrafts 17 30

385 803

10. Other gains and losses2013

52 weeks2012

52weeks £’000 £’000

Profitondisposalofavailable-for-saleinvestments 885 –Impairmentlossrecognisedonavailable-for-saleequityinvestments (13) (74)

872 (74)

Theimpairmentlossof£13krelatestothelistedinvestmentinPLUSMarketsGroupPLC(2012:£74k).

Theprofitondisposalofavailable-for-saleinvestmentsaroseonthedisposaloftheGroup’sholdinginNPLUS1SingerLimited(seenote 13).

11. Taxation


2013 52 weeks

2012 52weeks

2013 52 weeks

2012 52weeks

2013 52 weeks

2012 52weeks

£’000 £’000 £’000 £’000 £’000 £’000

United KingdomCurrenttax 6,590 6,650 – (617) 6,590 6,033 Adjustmentsinrespectofprioryears 256 554 – – 256 554

Overseastax Currenttax 194 261 – – 194 261 Adjustmentsinrespectofprioryears – – – – – –

7,040 7,465 – (617) 7,040 6,848UnitedKingdomdeferredtax

Current year 365 1,140 – – 365 1,140 Adjustmentsinrespectofprioryears (108) (216) – 202 (108) (14)

7,297 8,389 – (415) 7,297 7,974

UnitedKingdomcorporationtaxiscalculatedat23.5%(2012:25%)oftheestimatedassessabletaxableprofitfortheperiod.TheFinanceAct2012receivedRoyalAssenton17July2012andreducedthecorporationtaxrateto23%from1 April2013(24%appliedfrom1April2012).

Taxationforotherjurisdictionsiscalculatedattherelevantprevailingratesintherespectivejurisdictions.



11. Taxation (continued)Thechargefortheyearforcontinuingoperationscanbereconciledtotheprofitpertheincomestatementasfollows:

2013 52 weeks

2012 52weeks

£’000 £’000

Profitbeforetaxoncontinuingoperations 28,571 29,883

TaxattheUKcorporationtaxrateof23.5%(2012:25%) 6,714 7,471 Taxeffectof:Incomenottaxableindeterminingtaxableprofit (208) –Expensesthatarenotdeductibleindeterminingtaxableprofit 954 755Prioryeartax (57) 141 Lower rates in subsidiaries (275) (105)Exemptdividendincome (36) (70)Changeintaxrateondeferredtax 205 197

Taxexpensefortheperiod 7,297 8,389

Effectivetaxratefortheyear 26% 28%

Inadditiontotheamountcreditedtotheincomestatement,deferredtaxrelatingtotherevaluationoftheGroup’savailable-for-saleinvestmentsamountingto£633,000(2012:£167,000credited)hasbeendebitedtoothercomprehensiveincome,thisisattributabletothereductionintheCorporationTaxrateanddeferredtaxrelatingtotheactuariallossinthedefinedbenefitpensionschemeamountingto£443,000(2012:£1,164,000credited)hasbeencreditedtoothercomprehensiveincome.Deferredtaxonshare-basedpaymentsof£316,000(2012:£96,000credited)has been credited to profit and loss reserves.

12. Profit attributable to equity shareholders of the Parent

2013 52 weeks

2012 52weeks

£’000 £’000

ProfitaftertaxationdealtwithintheaccountsoftheCompany 19,721 16,332

13. Discontinued operationsThedisposaloftheCorporateAdvisoryandBrokingdivisionwascompletedon1February2012.Atthisdate,theGroupreceiveda14%preferredinterestinN+1BrewinLLP.InJuly2012,N+1BrewinLLPmergedwithSingerCapitalMarketsLimited,theGroup’sholdinginthenewentity,NPLUS1SingerLimited,was5.6%.

Thisholdingwasvaluedat£nilat30September2012;theholdinghasnowbeensoldfor£885,472(seenote19).

TheCorporateAdvisoryandBrokingDivisionrepresentedareportablesegmentoftheGroupuntilitsdisposalandtheeffect of the discontinued operation on segment results is disclosed in note 6.

Theresultsofthediscontinuedoperationsintheconsolidatedincomestatementwereasfollows:

2013 52 weeks

2012 52weeks

£’000 £’000

Revenue – 1,235Expenses – (3,599)Operating loss – (2,364)Costs of separation – (1,143)Lossbeforetax – (3,507)Attributabletax – 415

Lossattributabletodiscontinuedoperations(attributabletotheownersoftheCompany) – (3,092)

Duringtheyearthedivisioncontributedanetcashoutflowof£nil(2012:£3.5moutflow)totheGroup’snetoperatingcash flows.

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14. Dividends

2013 52 weeks

2012 52weeks

£’000 £’000

Amountsrecognisedasdistributionstoequityshareholdersintheperiod:2011/2012Finaldividendpaid8April2013,3.6ppershare(2012:3.55ppershare) 8,755 8,4122012/2013Interimdividendpaid28June2013,3.55ppershare(2012:3.55ppershare) 9,322 8,475

18,077 16,887

Proposedfinaldividendforthe52weeksended29September2013of5.05p(2012:3.6p)persharebasedonsharesinissueat1December2013(30November2012) 13,290 8,599

Theproposedfinaldividendforthe52weekperiodended29September2013of5.05ppershareissubjecttoapprovalbyshareholdersattheAnnualGeneralMeetingandhasnotbeenincludedasaliabilityinthesefinancialstatements.

Underanarrangementdated1April2011,EESTrusteesInternationalLimited(the“Trustee”)whoholds8,401,931numberofordinarysharesrepresenting3.08%oftheCompany’scalledupsharecapitalhasagreedtowaivealldividendsdue to the Trustee.

15. Earnings per share From continuing and discontinuing operations

Thecalculationofthebasicanddilutedearningspershareisbasedonthefollowingdata:

2013 2012’000 ’000

Number of sharesBasicWeighted average number of shares in issue in the period 250,391 236,921 DilutedWeighted average number of options outstanding for the period 12,211 7,996 Estimated weighted average number of shares earned under deferred consideration arrangements 3,434 6,374

Diluted weighted average number of options and shares for the period 266,036 251,291

Earnings attributable to ordinary shareholders2013 2012

Continuing operations £’000 £’000

Profitfortheperiodfromcontinuingoperations 21,274 21,494 Disposalofavailable-for-saleinvestment (885) –Redundancy costs 4,795 570AdditionalFSCSlevy 1,107 553Onerous contracts provision 6,232 –Amortisationofintangibleassets–clientrelationships 12,520 11,871lesstaxeffectofabove (5,586) (3,249)

Adjustedbasicprofitfortheperiodandattributableearningsexcludingredundancycosts,additionalFSCSlevy,onerouscontractsprovision,amortisationofclientrelationshipsanddisposalofavailable-for-saleinvestment 39,457 31,239



15. Earnings per share (continued)

2013 2012£’000 £’000

Profitfortheperiodfromcontinuingoperations 21,274 21,494 Financecostsofdeferredconsideration(notea) 142 115lesstax (33) (29)

Adjustedfullydilutedprofitfortheperiodandattributableearnings 21,383 21,580Disposalofavailable-for-saleinvestment (885) –Redundancy costs 4,795 570AdditionalFSCSlevy 1,107 553Onerous contracts provision 6,232 –Amortisationofintangibleassets–clientrelationships 12,520 11,871lesstaxeffectofabove (5,586) (3,249)

Adjustedbasicprofitfortheperiodandattributableearningsexcludingredundancy costs,additionalFSCSlevy,onerouscontractsprovision,amortisationofclientrelationshipsanddisposalofavailable-for-saleinvestment 39,566 31,325

FromcontinuingoperationsBasic 8.5p 9.1p

Diluted 8.0p 8.6p

Fromcontinuingoperationsexcludingredundancycosts,additionalFSCSlevy,onerouscontractsprovision,amortisationofclientrelationshipsanddisposalofavailable-for-saleinvestment

Basic 15.8p 13.2p

Diluted 14.9p 12.5p

a) Financecostsofdeferredconsiderationareaddedbackwheretheissueofsharesismoredilutivethantheinterestcost saved.

Earnings attributable to ordinary shareholders 2013 2012Continuing and discontinued operations £’000 £’000

Profitfortheperiod 21,274 18,402Disposalofavailable-for-saleinvestment (885) –Redundancy costs 4,795 617 AdditionalFSCSlevy 1,107 553Onerous contracts provision 6,232 –Amortisationofintangibleassets–clientrelationships 12,520 11,871lesstaxeffectofabove (5,586) (3,260)


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Earnings attributable to ordinary shareholders 2013 2012Continuing and discontinued operations £’000 £’000

Profitfortheperiod 21,274 18,402Financecostsofdeferredconsideration(noteaabove) 142 115lesstax (33) (29)

Adjustedfullydilutedprofitfortheperiodandattributableearnings 21,383 18,488Disposalofavailable-for-saleinvestment (885) –Redundancy costs 4,795 617 AdditionalFSCSlevy 1,107 553Onerous contracts provision 6,232 –Amortisationofintangibleassets–clientrelationships 12,520 11,871lesstaxeffectofabove (5,586) (3,260)


The denominators used are the same as those detailed above for both basic and diluted earnings from continuing operations

Fromcontinuinganddiscontinuedoperations

Basic 8.5p 7.8p

Diluted 8.0p 7.4p

Fromcontinuinganddiscontinuedoperationsexcludingredundancycosts,additionalFSCSlevy,onerouscontractsprovision,amortisationofclientrelationshipsanddisposalofavailable-for-saleinvestment

Basic 15.8p 11.9p

Diluted 14.9p 11.2p

Fromdiscontinuedoperations

The denominators used are the same as those detailed above for both basic and diluted earnings from continuing operations

Basic 0.0p (1.3p)Diluted 0.0p (1.2p)



16. Intangible assets Group

Goodwill Client

relationships

Software development

costs Purchased

software Total £’000 £’000 £’000 £’000 £’000

Cost

At 30 September 2011 48,637 90,485 1,134 13,083 153,339Additions – 7,665 474 15,882 24,021 Disposals – – – (90) (90)Revaluation of shares to be issued and deferred purchase consideration in respect of acquisitionsinpriorperiods(note25) – (3,460) – – (3,460)

At 30 September 2012 48,637 94,690 1,608 28,875 173,810Additions – 4,616 1,053 15,235 20,904 Disposals – – – (156) (156)Exchangedifferences – 8 – – 8Revaluation of shares to be issued and deferred purchase consideration in respect of acquisitionsinpriorperiods(note25) – 1,264 – – 1,264

At 29 September 2013 48,637 100,578 2,661 43,954 195,830

Accumulated amortisation and impairment

At 30 September 2011 – 31,606 458 5,470 37,534Amortisation charge for the period – 11,871 304 3,259 15,434Eliminated on disposal – – – (88) (88)Impairment losses for the period – – – – –

At 30 September 2012 – 43,477 762 8,641 52,880Amortisation charge for the period – 12,520 265 2,756 15,541Eliminated on disposal – – – (39) (39)Exchangedifferences – – – – –Impairment losses for the period – – – – –

At 29 September 2013 – 55,997 1,027 11,358 68,382 ^£15mofpurchasedsoftwareacquiredintheperiodand^^£1mofsoftwaredevelopmentcosts,relatetoanassetwhichisunderdevelopmentandnotyetinuse.

Therehavebeennoimpairmentlossestoclientrelationshipsrecognisedintheperiod(2012:£nil).

Net book valueAt 29 September 2013 48,637 44,581 1,634 32,596 127,448

At 30 September 2012 48,637 51,213 846 20,234 120,930

At 30 September 2011 48,637 58,879 676 7,613 115,805

^^ ^

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Clientrelationshipadditionsaremadeupasfollows:

2013 2012 £’000 £’000

Cash paid for additions in period 1,842 4,826Deferred purchase liability 26 409 Valueofsharestobeissued* 189 2,213

2,057 7,448

Cash paid for businesses or client relationships acquired in previous periods 1,642 2,052Shares issued in period 5,868 7,586Other additions 1,768 1,112 Utilisationofprovisionsfordeferredpurchaseliabilityandsharestobeissued(note25) (6,719) (10,533)

Adjustmentstoprioryearacquisitions 2,559 217

Total additions 4,616 7,665*Thenumberofsharesissuableisdeterminedbythesharepriceatthedateofissue.Iftheshareshadbeenissuedattheendoftheperiodthenumberofsharesissuedwouldhavebeen71,321basedontheclosingsharepriceasat29September2013(2012:1,317,262)ordinary1penceshares.

Analysis of goodwill and client relationships

Goodwill Client

relationships Total £’000 £’000 £’000

Carrying amount at period endSouth East investment management team 9,987 – 9,987Midland investment management team 1 5,153 – 5,153Midlandinvestmentmanagementteam2** – 2,052 2,052Midland investment management team 3 5,289 – 5,289Midland investment management team 4 – 2,194 2,194 TilmanBrewinDolphinLimited* – 14,805 14,805Other investment management teams ~ 28,208 25,530 53,738

48,637 44,581 93,218

*Amortisationperiodremaining12years10months.

**Amortisationperiodremaining2years.

~Noneoftheconstituentpartsofthegoodwillorclientrelationshipsrelatingtotheotherinvestmentmanagementteamsisindividuallysignificantincomparisontothetotalvalueofgoodwill or client relationships respectively.

Basis of valuation, key assumptions and sensitivity for impairment testing of goodwill

The key assumption is the value of the funds under management which is determined based on a percentage of funds undermanagementwithreferencetorecentobservablemarkettransactions,discretionaryfundsarevaluedat3%andadvisoryfundsat1%.

Sensitivity analysis of the key assumptions A 10bp absolute change in the value of funds under management used for the purpose of impairment testing impacts the valuationoftheCGUscollectivelyby+/-4.2%or+/-£19mmovementontheestimatedvalueoffundsundermanagementof£445moftheCGUswhichhavegoodwillbalancesasat29September2013.



17. Property, plant and equipment Group

Leasehold Improvements

Office Equipment

Motor Vehicles

Computer Equipment Total

£’000 £’000 £’000 £’000 £’000Cost

At 30 September 2011 10,916 11,131 35 73,280 95,362Additions 1,568 2,020 – 3,824 7,412 Exchangedifferences (15) (38) (3) – (56)Disposals (140) (296) – (457) (893)

At 30 September 2012 12,329 12,817 32 76,647 101,825Additions 2,042 1,212 – 1,267 4,521Exchangedifferences 9 25 2 – 36 Disposals (1,693) (373) – (143) (2,209)

At 29 September 2013 12,687 13,681 34 77,771 104,173

DepreciationAt 30 September 2011 5,529 7,839 1 66,124 79,493 Charge for the period 1,496 1,643 7 4,068 7,214 Exchangedifferences (14) (31) – – (45)Eliminated on disposal (93) (270) – (425) (788)

At 30 September 2012 6,918 9,181 8 69,767 85,874Charge for the period 1,459 1,545 6 2,559 5,569Exchangedifferences 8 20 – – 28Eliminated on disposal (1,155) (318) – (145) (1,618)

At 29 September 2013 7,230 10,428 14 72,181 89,853

Net book valueAt 29 September 2013 5,457 3,253 20 5,590 14,320 At 30 September 2012 5,411 3,636 24 6,880 15,951

At 30 September 2011 5,387 3,292 34 7,156 15,869

*£0.8mrelatestohardwareacquiredintheperiod,wheretheassetisnotyetinuse.

*

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18. SubsidiariesThefollowingaretheGroup’sprincipalsubsidiaryundertakings,allofwhichareowned100%directlyorindirectlybytheGroupandareincludedintheconsolidatedfinancialstatements:

NameofSubsidiary Activity Country of registration Class of share capitalBDSNomineesLimited NomineeCompany England & Wales Ordinary Brewin1762NomineesLimited NomineeCompany England & Wales Ordinary BrewinDolphinMP Investment Manager England & Wales A Ordinary / B OrdinaryBrewinNomineesLimited NomineeCompany England & Wales Ordinary Brewin Dolphin Limited Investment Manager England & Wales Ordinary FourYardsNomineesLimited NomineeCompany England & Wales Ordinary GiltspurNomineesLimited NomineeCompany England & Wales Ordinary SmittcoNomineesLimited NomineeCompany England & Wales Ordinary NorthCastleStreet(Nominees)Limited NomineeCompany Scotland OrdinaryTilman Brewin Dolphin Limited Investment Manager Republic of Ireland Ordinary

AcompletelistoftheGroup’ssubsidiarieswillbeincludedintheGroup’sannualreturntoCompaniesHouse.

Company 2013 2012£’000 £’000

At start of period 186,194 168,953Change in investment in Brewin Dolphin Limited 924 14,481Investment in Tilman Brewin Dolphin Limited 490 1,589CapitalcontributiontoBrewinDolphinLimitedreshare-basedpayments 4,091 1,171

At end of period 191,699 186,194



19. Investments

Available-for-sale investmentsGroup Listed

investmentsUnlisted

investments Total£’000 £’000 £’000

At 30 September 2011 87 6,000 6,087Impairment recognised in the income statement (74) – (74)

At 30 September 2012 13 6,000 6,013 Impairment recognised in the income statement (13) – (13)Netgainfromchangesinfairvaluerecognisedinequity – 4,000 4,000

At 29 September 2013 – 10,000 10,000

Thelistedavailable-for-saleinvestmentisinPLUSMarketsGroupPLCandwasastrategicinvestmentdesignedtoreducethethenmonopolyoftheLondonStockExchange,ithasacurrentmarketvalueof£nil(2012:£nil).

Theunlistedavailable-for-saleinvestmentinEuroclearplcisasaresultofa£0.4mstrategicinvestmentinCrest,theLondon based settlement system. Crest was taken over by Euroclear plc and the resultant stake in Euroclear plc was 0.52%ofitssharecapitalor19,899ordinaryshares.Asat29September2013,theDirectorsupdatedtheirvaluationoftheGroup’sholdinginEuroclearplc;thevaluationis£10million(2012:£6million).Thisvaluationtakesintoaccountanumber of different valuation methods including dividend yield.

TheGroup’s5.6%holdinginNPLUS1SingerLtd(seenote13)wasdisposedofduringthe52weekperiodended29 September2013(2012:£nil,onthebasisthatnofairvaluewasdeterminableattheperiodend).

Trading investmentsGroup

Listed investments

Unlisted investments Total

£’000 £’000 £’000Fairvalue

At 30 September 2012 759 – 759

At 29 September 2013 872 – 872

Investments are measured at fair value which is determined directly by reference to published prices in an active market where available.

Thetradinginvestmentsareheldinanunregulatedsubsidiary,BrewinDolphinMP,whosesoleobjectiveistoprovideseedcapital to the model portfolios managed under an investment mandate by Brewin Dolphin Limited.

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20. Trade and other receivables

Group2013 2012

£’000 £’000

Non-current: other receivablesLoans–see(i)below 1,353 2,215

1,353 2,215

Current: trade and other receivablesTrade debtors 199,938 167,700 Other debtors 1,076 5,113Prepaymentsandaccruedincome 57,834 54,858

258,848 227,671

(i)£1,353,000(2012:£2,215,000)representsloanstostaff.TheDirectorsbelievethatthesebalancesarefullyrecoverable.

Company2013 2012

Non-current: other receivables £’000 £’000

Loans 319 420

319 420

Current: trade and other receivablesPrepaymentsandaccruedincome 23 17 Amounts due from subsidiary undertakings 44,544 209

44,567 226

TheDirectorsconsiderthatthecarryingamountofthetradeandotherreceivablesapproximatestotheirfairvalue.Anytrade debtor in relation to client balances that are older than ninety days are provided for unless collateral is held.

Trade debtors relate to either market or client transactions and are considered to be past due once the date for settlementhaspassed.Thedateforsettlementisdeterminedwhenthetradeisbooked.Itisexpectedthatsometransactionsmaybecomepastdueinthenormalcourseofbusiness.Feesowedbyclientsareconsideredtobepastduewhentheyremainunpaidafter30daysaftertherelevantbillingdate.Themaximumexposuretocreditriskisthecarryingvalue as above.

Ageing of past due but not impaired trade debtors 2013 2012£’000 £’000

Notpastdue 193,328 162,846Upto15dayspastdue 5,086 3,203 16 to 30 days past due 432 42831to45dayspastdue 202 163 Morethan45dayspastdue 724 940

199,772 167,580 Individually impaired trade debtors Individually impaired trade debtors 356 321 Provisionfordoubtfuldebts (190) (201)

166 120

Trade debtors 199,938 167,700 Movements in provision for doubtful debts At start of period 201 1,021 Netreleasetotheincomestatement (11) (206)Doubtful debts written off – (614)

At end of period 190 201

NootherfinancialassetsoftheGrouportheCompany,otherthandoubtfuldebts,areimpaired.



21. Deferred tax asset / (liability) ThefollowingarethemajordeferredtaxliabilitiesandassetsrecognisedbytheGroupandmovementsthereonduringthecurrentandpriorreportingperiod:

Capital allowances Revaluation

Othershort-term timing differences

Retirement benefit

obligation

Share- based

payments

Intangible asset

amortisation Total£’000 £’000 £’000 £’000 £’000 £’000 £’000

GroupAt 30 September 2011 2,622 (1,447) 3,176 1,847 134 (5,773) 559Credit/(charge)intheperiod to the income statement (316) – (5) (768) 107 (144) (1,126)Credit/(charge)intheperiod to the statement of comprehensive income – 167 – 1,164 96 – 1,427

At 30 September 2012 2,306 (1,280) 3,171 2,243 337 (5,917) 860Credit/(charge)intheperiod to the income statement (455) – 851 (851) 526 (328) (257)Credit/(charge)intheperiod to the statement of comprehensive income – (633) – 443 259 – 69

At 29 September 2013 1,851 (1,913) 4,022 1,835 1,122 (6,245) 672

22. Cash and cash equivalents

2013 2012£’000 £’000

GroupFirm’scash 116,686 48,003Client settlement cash 20,301 23,824

136,987 71,827

CompanyFirm’scash 136 829

136 829

Client settlement cash is held in segregated client accounts and is not available for use in the business. Cash and cash equivalentscomprisescashatbanks.Thecarryingamountoftheseassetsisapproximatelyequaltotheirfairvalue.

At the balance sheet date there were also deposits for clients, not included in the consolidated balance sheet, which were heldinsegregatedclientbankaccountsamountingto£1.46billion(2012:£1.43billion).

23. Bank overdrafts

2013 2012Group £’000 £’000

Bank overdrafts 3,153 243

3,153 243

Bank overdrafts are unsecured and repayable on demand.

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24. Trade and other payables

Current 2013 2012£’000 £’000

GroupTrade creditors 214,923 178,508Other creditors 8,764 17,301 Othertaxesandsocialsecurity 8,070 6,346 Accruals and deferred income 57,653 45,540Deferredpurchaseconsideration(note25) 474 860

289,884 248,555

CompanyOther creditors 16 16 Accruals and deferred income 3,319 5,259Amounts payable to subsidiary undertakings 7,336 7,336

10,671 12,611

Trade creditors relate to either market or client transactions; the date for settlement is determined when the trade is booked. Other trade and other payable balances principally comprise amounts outstanding for ongoing costs.

TheDirectorsconsiderthatthecarryingamountoftradeandotherpayablesapproximatestotheirfairvalue.



25. Shares to be issued including premium and other deferred purchase liabilitiesTheGroupacquiresinvestmentbusinessesandteamsofinvestmentmanagers,bringingwiththemfundsundermanagement(thelatterclassifiedastheintangibleassetclientrelationships)ondeferredpurchasetermsbasedonthevalue of income introduced over, normally, a three year period. The payment is normally made in ordinary shares and these shares typically have to be held for a further three years. At the discretion of the Board these shares can be purchased in the market rather than issued. The estimated likely cost of these shares is reassessed annually, see notes 3(s)and4.Attheperiodendtherewasanetupwardassessmentof£1.3m(2012:netdownward£3.5m).Theseadjustmentsareinevitablysubjectiveanddependentonevents,influencedbymarketconditions.Theothersideoftheliabilityisrecordedinintangibleassets-clientrelationships(seenote16).

Eachindividualtransactionhasacapastothemaximumvaluethatcouldbepaidout.Thevalueofthecapisalwayssetatavaluesubstantiallyabovewhatitisexpectedwillbepaidout.Thetotalvalueofthesecapsis£9.5m(2012:£13.5m)forsharestobeissuedwithinoneyear,£59.2m(2012:£55.4m)forsharestobeissuedfromonetofiveyears.Thereis£ nil(2012:£10.7m)offurtherpotentialexpenditurecontractedforbutnotprovidedintheaccounts.

IntheeventoftheGroupbeingacquiredbyathirdparty,provisionsexisttorenegotiatethedeferredpurchaseconsideration into the shares of the acquiring entity, or for the deferred settlement period to be truncated.

As at 29 September 2013 Shares to be issued inc.

premium

Deferred Purchase

Consideration Total(Group &

Company) (Group only)2013 2013 2013£’000 £’000 £’000

Deferred consideration relating to acquisitionsCurrent liabilityPaymentsrelatingto4cashgeneratingunits 3,075 474 3,549

3,075 474* 3,549

Non-current liabilityPaymentsrelatingto3cashgeneratingunitspayablein2014/15 4,255 139 4,394 Paymentsrelatingto8cashgeneratingunitspayablein2015/16 7,581 1,046 8,627

11,836 1,185 13,021

Totalcurrentandnon-currentliability 14,911 1,659 16,570

Expenditurecontractedforbutnotprovidedintheaccounts – – –

Reconciliation of movement in total of current and non-current liabilities

Balance as at 30 September 2012 19,276 2,385 21,661 On acquisitions in the period 189 26 215 Adjustmenttoprioryearacquisitions(seenotes3(s)and16) 1,162 102 1,264 Unwind of discount charged to the income statement 142 7 149 Utilised in period (5,858) (861) (6,719)

Balance as at 29 September 2013 14,911 1,659 16,570

*CurrentliabilityforDeferredPurchaseConsiderationisincludedintheConsolidatedBalanceSheetwithinTradeandOtherPayables.

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As at 30 September 2012 Shares to be issued inc.

premium

Deferred Purchase

Consideration Total(Group&

Company) (Grouponly)2012 2012 2012£’000 £’000 £’000

Deferred consideration relating to acquisitionsCurrent liabilityPaymentsrelatingto8cashgeneratingunits 5,858 860 6,718

5,858 860* 6,718

Non-current liabilityPaymentsrelatingto4cashgeneratingunitspayablein2013/14 2,254 365 2,619 Paymentsrelatingto3cashgeneratingunitspayablein2014/15 4,036 176 4,212 Paymentsrelatingto11cashgeneratingunitspayablein2015/16 7,128 984 8,112

13,418 1,525 14,943

Total current and non-current liability 19,276 2,385 21,661

Expenditure contracted for but not provided in the accountsDue after more than one year 2016/17 1,038 – 1,038

Reconciliation of movement in total of current and non-current liabilitiesBalance as at 30 September 2011 29,381 3,459 32,840On acquisitions in the period 2,213 409 2,622 Adjustmenttoprioryearacquisitions(seenotes3(s)and16) (3,243) (217) (3,460)Unwind of discount charged to the income statement 182 10 192 Utilised in period (9,257) (1,276) (10,533)

Balance as at 30 September 2012 19,276 2,385 21,661

26. Financial instruments and risk managementOverviewThisnotepresentsinformationabouttheGroup’sexposuretoeachoftherisksbelow,theGroup’spolicyandproceduresformeasuringandmanagingriskandtheGroup’smanagementofcapital.Furtherquantitativedisclosuresareincludedthroughout these consolidated financial statements.

TheGrouphasexposuretothefollowingrisksfromitsuseoffinancialinstruments:

• market risk;

• credit risk;

• liquidity risk; and

• operational risk.

Risk ManagementTheBoardofDirectorshaveoverallresponsibilityforestablishingandoverseeingtheGroup’sriskmanagementframeworkand risk appetite.

TheBoardhaveestablishedaclearrelationshipbetweentheGroup’sstrategicobjectivesandthelevelofcapitalwhichthe Board are prepared to place at risk through a risk appetite statement. The risk appetite statement sets out the type andlevelofrisktheGroupispreparedtoacceptinpursuitofitsobjectives.TheBoardreviewsthestatementonatleastanannualbasistoensurethedocumentcontinuestoreflecttheBoard’sappetiteforriskwithinthecontextoftheenvironmenttheGroupoperateswithin.

TheGroup’sBoardRiskCommitteesprovideoversightoftheadequacyoftheGroup’sriskmanagementframeworkbasedontheriskstowhichtheGroupisexposed.TheyalsomonitorhowmanagementcomplywiththeGroup’sriskmanagementpoliciesandprocedures.TheyareassistedinthedischargeofthisdutybytheGroup’sRisk&RegulationfunctionwhichhasresponsibilityformonitoringtheoverallriskenvironmentoftheGroup.



26. Financial instruments and risk management (continued)TheGroup’sAuditCommitteeisresponsibleforoverseeingthefinancialstatementsandworkingcloselywiththeBoardRisk Committee, for both review and oversight of internal controls. The Audit Committee is assisted in the discharge of its obligationsbyInternalAuditwhoundertakeperiodicandad-hocreviewsontheeffectivenessofriskcontrolsandcompliance with risk management policies.

TheGroup’sriskmanagementpoliciesareintendedtoensurethatrisksareidentified,evaluatedandsubjecttoongoingmonitoringandmitigation(whereappropriate).Theriskpoliciesalsoservetosettheappropriatecontrols,theadequacyandeffectivenessofwhichisalsosubjecttoongoingtestingandreview.TheaimistopromotearobustriskculturewithemployeesacrosstheGroupunderstandingtheirroleandobligationsundertheframework.

Capital risk managementTheGroupmanagesitscapitaltoensurethatentitiesintheGroupwillbeabletocontinueasagoingconcern.ThecapitalstructureoftheGroupandCompanyconsistsofissuedsharecapital,reservesandretainedearningsasdisclosedintheConsolidated and Company Statement of Changes in Equity.

TheGroupconductsanInternalCapitalAdequacyAssessmentProcess(“ICAAP”),asrequiredbytheFinancialConductAuthority(“FCA”)forestablishingtheamountofregulatorycapitaltobeheldbytheGroup.TherearetworegulatedentitiesintheGroup:BrewinDolphinLimited(“BDL”)regulatedbytheFCAandTilmanBrewinDolphinLimitedregulatedby the Central Bank of Ireland.

ThePillarIIassessmentoftheICAAPistheBoardofDirectors’opinionofthelevelofcapitaltheGroupshouldholdtosupporttheriskstowhichtheGroupisexposed,betheyinternalorexternalinorigin.ThistakesintoaccounttheGroup’sPrincipalRiskRegisterwhichisupdatedonabi-annualbasis.TheICAAPiskeptupdatedthroughouttheyeartotakeaccountofchangestotheGroup’sPrincipalRisksandforanymaterialchangestostrategyorbusinessplans.TheICAAPisdiscussedandapprovedataBrewinDolphinHoldingsPLCBoardmeetingatleastannually.

Capitaladequacyismonitoreddailybymanagement.TheGroupusesthesimplifiedapproachtoCreditRisktocalculatePillar1requirements.TheGroupcompliedwiththeFCA’sregulatoryrequirementsthroughouttheperiod.

TheregulatorycapitalresourcesoftheGroupcalculatedinaccordancewithFCAdefinitionswereasfollows:

29 September 2013

30 September 2012

Tier 1 capital resources £’000 £’000

Ordinary share capital 2,712 2,469 Share premium account 133,341 124,271 Own shares held (12,734) (12,569)Retained earnings 29,294 21,331 Merger reserve 61,380 22,950Shares to be issued 14,911 19,276

228,904 177,728Deduction–Intangibleassets (127,448) (120,930)

101,456 56,798

Tier 2 capital resources Revaluation reserve 7,652 4,285Deductions – –

7,652 4,285

Tier 1 plus tier 2 capital resources 109,108 61,083Deduction–Materialholdings – –

Total capital before deductions 109,108 61,083Deductions from total capital (380) (452)

Total capital resources after deductions 108,728 60,631

TherewerenochangesintheGroup’sapproachforcapitalmanagementduringtheperiod.

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Significant accounting policiesDetails of the significant accounting policies, including the criteria for recognition, the basis of measurement and the basis onwhichincomeandexpensesarerecognisedinrespectofeachfinancialassetandfinancialliability,aredisclosedinnote 3 to the financial statements.

Categories of financial instruments

GroupCarrying value

2013 2012£’000 £’000

Financial assetsFairvaluethroughprofitandloss–heldfortrading 872 759Loansandreceivables(includingcashandtradereceivables) 386,098 292,939 Available-for-salefinancialassets 10,000 6,013

396,970 299,711

Financial liabilitiesAmortised cost 306,076 267,382

306,076 267,382

CompanyCarrying value

2013 2012£’000 £’000

Financial assetsLoansandreceivables(includingcashandtradereceivables) 45,022 1,475

45,022 1,475

Financial liabilities

Amortised cost 22,248 26,614

22,248 26,614

Thecarryingvalueapproximatestothefairvalueofthefinancialassetsandliabilitiesheld.

Fair value measurement recognised in the statement of financial positionThe following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value,groupedintoLevels1to3basedonthedegreetowhichthefairvalueisobservable:

• Level1fairvaluemeasurementsarethosederivedfromquotedprices(unadjusted)inactivemarketforidenticalassets or liabilities;

• Level 2 fair value measurements are those derived from inputs other than the quoted price included within Level 1 thatareobservablefortheassetoraliability,eitherdirectly(i.e.asprices)orindirectly(i.e.derivedfromprices);and

• Level 3 fair value measurements are those derived from formal valuation techniques that include inputs for the asset orliabilitythatarenotbasedonobservablemarketdata(unobservableinputs).

Level 1 Level 2 Level 3 Total£’000 £’000 £’000 £’000

Held for tradingQuoted equities 872 – – 872Available-for-sale financial assetsQuoted equities – – – -Unquoted equities – – 10,000 10,000

Total 872 – 10,000 10,872

There were no transfers between Levels 1 and 2 during the year.



26. Financial instruments and risk management (continued) Reconciliation of Level 3 fair value measurement of financial assets:

Available-for-sale

Unquoted equities£’000

Balance at 30 September 2012 6,000 Totalgainsorlosses:in other comprehensive income 4,000

Balance at 29 September 2013 10,000

The table above only includes financial assets. There were no financial liabilities subsequently measured at fair value on the Level 3 fair value measurement basis.

I. Market riskMarketriskistheriskthatchangesinmarketprices,suchasforeignexchangerates,interestratesandequitypriceswillaffecttheGroup’sincomeorthevalueofitsholdingsoffinancialinstruments.TheobjectiveoftheGroup’smarketriskmanagementistobothcontrolandmanageexposurewithintheGroup’sriskappetitewhilstacceptingtheinherentriskofmarket fluctuations.

TheGroupundertakesinvestmentmanagementandstockbrokingactivitiesonanagencybasisonbehalfofitsclientsintheUKandRepublicofIreland.TheGroupdoesnotholdfinancialinstrumentsasprincipalwiththeexceptionofthetradinginvestmentsheldbyBrewinDolphinMP(seenote19)andalltradesarematchedinthemarket.

TheGroupdealsinforeigncurrenciesonamatchedbasisonbehalfofclients,limitingforeignexchangeexposure.Thetotalnetforeignexchangeexposureresultingfromincomeyettobeconvertedtosterlingattheyearendwasadebtorof£119,000(2012:£421,000debtor).

AttheperiodendTilmanBrewinDolphinLimitedhadnetassetsof£4.0m(2012:£2.8m)denominatedinitslocalcurrency(Euros).

TheGroupdoesnotholdanyderivatives(2012:none).

TherehasbeennochangetotheGroup’sexposuretomarketrisksorthemannerinwhichitmanagesandmeasurestherisk during the period.

Equity price riskTheGroupisexposedtoequityriskarisingfromitsavailable-for-saleinvestmentsandthoseheld-for-trading.Equityinvestmentsdesignatedasavailable-for-saleareheldforstrategicpurposesratherthantradingpurposesandtheGroupdoes not actively trade in these investments.

Equity price sensitivity analysisThesensitivityanalysesbelowhavebeendeterminedbasedontheexposuretoequitypriceriskatthereportingdate.

Ifequitypriceshadbeen5%higher/lower:

• profitforthe52weekperiodended29September2013wouldhavebeen£44,000higher/lower(2012:£39,000higher/lower)duetochangesinthevalueofheld-for-tradinginvestment;and

• otherequityreservesasat29September2013wouldincrease/decreaseby£500,000(2012:increase/decreaseby£301,000/£300,000)fortheGroupasaresultofthechangesinfairvalueofavailable-for-saleinvestments

TheGroup’ssensitivitytoequitypriceshasnotchangedsignificantlyfromthepriorperiod.

Interest rate riskTheGroupisexposedtointerestrateriskinrespectoftheGroup’scashandinrespectofclientdeposits.Thelatterarisesbecause the interest rate paid to its clients on their deposits is linked to the base rate of the respective central bank. The Groupholdsclientdepositsondemand(variableinterestrate).Attheendoftheperioda1%increaseinbaseratewouldhaveincreasedprofitabilityby£722,000(2012:£328,000).

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II. Credit riskCredit risk refers to the risk that a client or other counterparty will default on its contractual obligations resulting in financial losstotheGroup.TheGroup’sexposuretocreditriskarisesprincipallyfromthesettlementofclientandmarkettransactionsandcashdepositedatbanks.TheGroupusesthesimplifiedapproachtocalculatecreditriskasdefinedbytheFCA.

ExposuretocreditriskisspreadoveralargenumberofcounterpartiesandclientsandwithcollateralheldprincipallyinGroupnomineecompanieswhichhelpstomitigatecreditrisk.Thecollateralheldconsistsofequityandgiltsquotedonrecognisedexchangespluscash.Furthermore,alltransactionsareexecutedonadeliveryversuspayment(“DVP”)basisorcurrentsettlementbasis.Consequently,noresidualmaturityanalysisispresented.TheGrouphasnosignificantconcentrationofcreditriskwiththeexceptionofcashwherethemajorityisspreadacrossthreemajorbanks.

TheGroupundertakestradedoptionsaspartofitsservicetoclients:thisisaninsignificantpartoftheGroup’sbusiness.Thisbusinessistransactedasprincipal.AspertheLIFFErules,allsuchtransactionsarealwaysonamatchedbasisandclientsarerequiredtopledgecollateraliftheyholdoptionpositions,whicharemonitoredonadailybasis.From1July2013, the service was withdrawn for new clients.

Maximum exposureThemaximumexposuretocreditriskattheendofthereportingperiodisequaltothebalancesheetfigure.

Credit exposureCreditexposureinrelationtobothclientandmarkettransactionsismonitoreddaily.TheGroup’sexposuretolargetradesislimitedwithanaveragebargainsizeinthecurrentperiodof£12,200;thereareadditionalcontrolsforhighvaluetrades.

Impaired assetsThetotalgrossamountofindividuallyimpairedassetsinrelationtotradereceivablesattheperiodendwas£356,000(2012:£321,000).CollateralvaluedatfairvaluebytheGroupinrelationtotheseimpairedassetswas£166,000(2012:£120,000).Thiscollateralisstockheldintheclients’accountwhichperourclienttermsandconditionscanbesoldtomeetanyunpaidliabilitiesfallingdue.Thenetdifferencehasbeenprovidedasadoubtfuldebt(seenote20).Note20alsodetails amounts past due but not impaired.

Credit qualityFinancialassetsthatareneitherpastduenorimpairedinrespectoftradereceivablesrelatemainlytobonds,equityandgilttradesquotedonarecognisedexchange.Thesearematchedinthemarketandareeithertradedonacashagainstdocuments basis or against a client’s portfolio, in respect of which any one trade would normally be a small percentage of theclient’scollateralheldintheGroupnominee.Attheperiodendnofinancialassetsthatwouldotherwisebepastdueorimpairedhadbeenrenegotiated(2012:none).

Loanstoemployeesarerepayableover5to10years(seenote20).

Thecreditriskonliquidfunds,cashandcashequivalentsislimitedduetodepositsbeingheldatthreemajorbankswithminimumcreditratingsof“A”assignedbyinternationalcreditratingagencies.DepositsaremanagedbytheFinanceDepartment.

TheGroupcarriesoutatleastanannualreviewofallitsbanks’andcustodians’creditratings.

TherehasbeennochangetotheGroup’sexposuretocreditriskorthemannerinwhichitmanagesandmeasurestherisk during the period.



26. Financial instruments and risk management (continued)III. Liquidity riskLiquidityriskreferstotheriskthattheGroupwillbeunabletomeetitsfinancialobligationsastheyfalldue.TheGroupmaintains adequate cash resources to meet its financial obligations at all times. All client cash deposits are repayable on demand.At29September2013,theGrouphadaccesstoanunsecuredoverdraftfacilityof£15million(2012:£15 million).

TheGrouphasaLiquidityPolicywhichisreviewedbytheBoardannually.AstheGroupnormallydealswiththemarketonacashagainstdocumentbasis,liquidityriskismonitoredbydailyexceptionreportsofunmatcheditemspastsettlementdateandmanagedbytheFinanceandCreditControlDepartments.

TherehasbeennochangetotheGroup’sexposuretoliquidityriskorthemannerinwhichitmanagesandmeasurestherisk during the period.

Thefollowingaretheundiscountedcashflows,withtheexceptionofsharestobeissued,offinancialliabilitiesbasedontheearliestdateonwhichtheGroupcanberequiredtopay.

GroupAs at 29 September 2013

Up to 1 month

1 month to 3 months

3 months to 1 year

1 to 5 years

Over 5 years Total

£’000 £’000 £’000 £’000 £’000 £’000

Financial liabilitiesAmortised cost 234,737 27,114 25,551 18,674 – 306,076

234,737 27,114 25,551 18,674 – 306,076

As at 30 September 2012Up to

1 month1 month to

3 months3 months to 1 year

1to5 years

Over 5years Total

£’000 £’000 £’000 £’000 £’000 £’000

Financial liabilitiesAmortised cost 202,154 47,544 49 17,635 – 267,382

202,154 47,544 49 17,635 – 267,382

CompanyAs at 29 September 2013

Up to 1 month

1 month to 3 months

3 months to 1 year

1 to 5 years

Over 5 years Total

£’000 £’000 £’000 £’000 £’000 £’000

Financial liabilitiesAmortised cost 7,337 2,109 966 11,836 – 22,248

7,337 2,109 966 11,836 – 22,248

As at 30 September 2012Up to

1 month1 month to

3 months3 months to 1 year

1to5 years

Over 5years Total

£’000 £’000 £’000 £’000 £’000 £’000

Financial liabilitiesAmortised cost 7,338 5,858 – 13,418 – 26,614

7,338 5,858 – 13,418 – 26,614

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IV. Operational riskOperational Risk is the risk of loss resulting from inadequate or failed internal processes, people and systems, or from externalevents.Thisincludeslegalandregulatoryrisk,whichistheriskoflossresultingfromfailuretocomplywithlawsas well as prudent ethical standards and contractual obligations.

TheGroup’sapproachtomanagingoperationalriskistoidentify,assess,mitigateandmonitoroperationalrisksinawaywhichbalancescommercialandstakeholderinterests.Inpursuitofthataim,theGrouphasfollowedindustrygoodpracticefortheriskmanagementframeworkthroughtheadoptionofthe‘threelinesofdefence’model.TheBoardbelieves this approach best serves the interests of Brewin Dolphin’s stakeholders by ensuring accountability of management within the business and the proportionate allocation of resource within the oversight and control functions. Thismodelensuresclearresponsibilitiesbyapportioningspecificdutiestoeachofthethree‘lines’andthuseachlineplays an important role in ensuring effective risk management.

Operational risks are monitored and escalated by way of reports in accordance with the governance structure under the framework.

InformationdisclosureunderPillar3oftheCapitalRequirementsDirectivewillbepublishedontheGroup’swebsitebefore31 December 2013 at www.brewin.co.uk.

27. Retirement benefit obligation TheGroupoperatesaregisteredDefinedContributionScheme(theBrewinDolphinSeniorStaffPensionFund)andaregisteredDefinedBenefitScheme(theBrewinDolphinLimitedRBS)intheUKwhichbothofferpensionsinretirementand death benefits to members. The disclosures provided are in respect of the Defined Benefit Scheme only.

Pensionbenefitsarerelatedtothemembers’finalsalaryatretirementandtheirlengthofservice.Since1April2003theSchemehasbeenclosedtonewmembers.Membersunder55at1April2004ceasedtoaccruefurtherserviceintheSchemefromthatdate.ContributionstotheSchemefortheyearbeginning30September2013areexpectedtobe£3.0mplusthecontributionsforthosemembersstillaccruingservice.

TheGrouphasoptedtorecogniseallactuarialgainsandlossesimmediatelyviaOtherComprehensiveIncome.

A full actuarial valuation of the scheme was carried out as at 31 December 2011 and has been updated to 29 September 2013byaqualifiedindependentactuary.Themajorassumptionsusedbytheactuarywere(innominalterms)asfollows:

As at 29 September

2013

As at 30 September

2012

Discount rate 4.40% 4.50%RPIInflationassumption 3.20% 2.90%CPIInflationassumption 2.20% 1.90%Rate of increase in salaries 3.20% 2.90%LPIPensionIncreases 3.10% 2.90%

Averageassumedlifeexpectanciesformembersonretirementatage65.Retiring today

Males 88.8 years 88.7yearsFemales 89.0 years 89.9years

Retiring in 20 years timeMales 90.1 years 90.0 yearsFemales 91.5 years 91.4 years

InordertodeterminetheexpectedreturnonSchemeassetsfortheyearbegining1October2013,itisassumedthatthereturnsavailableonequitieswillexceedthoseavailablefromgiltsby3.5%perannum.Thisis1.0%perannumgreaterthantheout-performanceallowanceusedforthefundingvaluation.Theassumedreturnsavaliableonbondsare0.5%above gilts.



27. Retirement benefit obligation (continued)

Theassetsintheschemeandtheexpectedratesofreturnwere:Long-term

rate of return expected at

29 September 2013

Value at 29 September

2013 £’000

Long-termrate of return expectedat

30 September 2012

Value at 30 September

2012 £’000

Equities 6.90% 35,363 6.40% 28,918Bonds 3.90% 24,440 3.40% 30,974Other 0.50% 6,693 0.50% 953

Fairvalueofschemeassets 66,496 60,845

Theactualreturnonassetsovertheperiodwas: 5,049 5,261

Presentvalueoffundedobligation:Fundedplans 75,673 70,599Fairvalueofschemeassets 66,496 60,845

Deficit in funded scheme (9,177) (9,754)

Presentvalueofunfundedobligations – –Unrecognisedactuarialgains(losses) – –Adjustmentinrespectofassetceilingandminimumfundingrequirement – –

Netliabilityinbalancesheet 9,177 9,754

Reconciliation of opening and closing balances of the present value of the defined benefit obligation2013 2012£’000 £’000

Benefit obligation at beginning of period 70,599 61,501Service cost 100 164Interest cost 3,124 3,092Contributions by scheme participants 49 101Actuarial loss 4,343 7,813Benefits paid (2,542) (2,072)

Benefit obligation at end of period 75,673 70,599

Reconciliation of opening and closing balances of the fair value of plan assetsFairvalueofplanassetsatbeginningofperiod 60,845 54,400Expectedreturnonplanassets 2,923 2,511Actuarial gain 2,126 2,750Contributions by employers 3,095 3,155Contributions by scheme participants 49 101Benefits paid (2,542) (2,072)

Fairvalueofschemeassetsatendofyear 66,496 60,845

The amounts recognised in the income statement are:Current service cost 100 164Interest on obligation 3,124 3,092Expectedreturnonschemeassets (2,923) (2,511)

Totalexpense 301 745

Actuarial (losses)/gains to be shown in Statement of Comprehensive IncomeActuarial(losses)/gains (2,217) (5,063)

(2,217) (5,063)

Cumulative losses recognised in Statement of Comprehensive Income (22,821) (20,604)

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History of scheme assets, obligations and experience adjustments

As at 29/09/2013

As at 30/09/2012

As at 30/09/2011

As at 26/09/2010

As at 27/09/2009

£’000 £’000 £’000 £’000 £’000

Presentvalueofdefinedbenefitobligation 75,673 70,599 61,501 61,737 55,849Fairvalueofschemeassets 66,496 60,845 54,400 49,239 39,596Deficit in the scheme (9,177) (9,754) (7,101) (12,498) (16,253)

Total actuarial gains and losses arising on scheme liabilities 4,343 7,813 (2,165) 3,626 9,114Total actuarial gains and losses as a percentage of scheme liabilities 6% 11% -4% 6% 16%

Experienceadjustmentsarisingonschemeliabilities (75) (454) 85 (1,718) 273Experienceadjustmentsasapercentageofscheme liabilities 0% -1% 0% -3% 0%

Changes in assumptions underlying the present value of the liabilities 4,418 8,267 (2,250) 5,344 8,841Changes in assumptions as a percentage of scheme liabilities 6% 12% -4% 9% 16%

Experienceadjustmentsarisingonschemeassets 2,126 2,750 600 1,748 (442)Experienceadjustmentsasapercentageofscheme assets 3% 5% 1% 4% -1%

28. Called up share capitalGroup and Company

2013 2012 2013 2012No. No. £’000 £’000

Authorised:Ordinary shares of 1p each 500,000,000 500,000,000 5,000 5,000

Ordinary shares of 1p eachAllotted,issuedandfullypaid: 271,194,965 246,962,243 2,712 2,469 Allotted,issuedDec2005at157p,nilpaidlast subscription date Dec 2012 – 142,985 – –Allotted,issuedDec2006at184.5p,nilpaidlastsubscription date Dec 2013 205,960 341,460 – –Allotted,issuedJune2007at217.5p,nilpaidlastsubscription date June 2014 300,770 399,166 – –Allotted,issuedDec2007at162.5p,nilpaidlastsubscription date Dec 2014 396,570 563,013 – –Allotted,issuedJuly2008at104p,nilpaidlast subscriptiondateJune2015 485,560 639,402 – –Allotted,issuedDec2008at108.6p,nilpaidlastsubscriptiondateDec2015 220,992 310,072 – –

272,804,817 249,358,341 2,712 2,469



28. Called up share capital (continued)Duringtheperiodthefollowingshareswereissued:

Date No.ofFullyPaidShares

No.of NilPaidShares

Exercise/ IssuePrice

(pence)

Called up share

capital £’000

Share premium account £’000

Total £’000

At 30 September 2012 246,962,243 2,396,098 2,469 124,271 126,740 Issue of options Various 1,364,741 – 37.5p–217.5p 14 2,095 2,109 Nilpaidsharesnow paid up Various 786,246 (786,246) 104.0p–217.5p 8 1,208 1,216 Settlement of deferred consideration 6 Dec 2012 3,079,997 – 190.5p 31 5,837 5,868Placing 29 May 2013 19,001,738 – 210.0p 190 – 190 Cost of issue of shares Various – – – – (70) (70)

At 29 September 2013 271,194,965 1,609,852 2,712 133,341 136,053

Thesharepremiumof£38.4monthesharesissuedfortheplacingon29May2013hasbeencreditedtotheMergerReserve.

Thefollowingoptionshavebeengrantedandremainoutstanding:

Exerciseprice Grantdate2013

No.2012 No.

Approved share option 37.5p December 2002 – 6,250Approved share option 81.3p December 2003 129,944 193,772 Approved share option 98p December 2004 81,391 169,152Approved share option 145p December2005 225,233 431,233 Unapproved share option # 157p December2005 – 229,285Unapproved share option # 179.8p May 2006 16,689 16,689Approved share option 175.25p November2006 376,186 721,482Unapproved share option # 184.5p December 2006 336,040 346,880Unapproved share option # 217.5p June 2007 393,063 429,842Approved share option 168p November2007 241,087 680,620Unapproved share option # 162.5p December 2007 550,707 584,550Unapproved share option # 104p July2008 706,708 740,361 Approved share option 103.5p November2008 581,778 627,176 Unapproved share option # 108.6p December2008 322,280 331,488Approved share option 165.7p December 2009 715,591 751,014DeferredProfitSharePlan* Nil December 2010 3,211,011 3,312,326 Approved share option 148p December 2010 339,478 362,728Approved share option 131.3p December 2011 84,500 91,750DeferredProfitSharePlan* Nil December 2011 4,339,998 4,459,600DeferredProfitSharePlan Nil December 2012 2,729,301 –

Total options outstanding 15,380,985 14,486,198

#UndertheSeniorEmployeeMatchingSharePurchaseScheme.CertainoptionslapsedduringtheyearonpersonnelleavingtheGroup.*TheseoptionsdonotcounttowardsdilutionlimitsbecausetheshareshavebeenpurchasedinthemarketbytheBrewinDolphinHoldingsPLCShareOwnershipTrust.

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Therightsandobligationsattachedtotheordinarysharesof1penceeachintheCompanyareasfollows:

• IntermsofvotingeverymemberwhoispresentinpersonorbyproxyatageneralmeetingoftheCompanyshallhave one vote on a show of hands and one vote for every share held on a poll.

• As regards dividends, all shares in issue at the period end rank pari passu for dividends. Shareholders shall be entitled to receive dividends following declaration by the Company. Dividends are not payable in respect of the 1,609,852(2012:2,396,098)nilpaidsharesheldbytheTrusteesinBrewinDolphinHoldingsPLCEmployeeShareOwnershipTrust(the“Trust”).

• Employees are restricted from any transfer of shares of the Company that would result in a change in beneficial holdingduringtheperiodbetweentheendoftheGroup’sfinancialyearendeachyearandthedateonwhichtheGroupannouncesitspreliminaryfinalresults.ThisrestrictionalsoappliesduringtheperiodbetweentheendoftheGroup’sfinancialhalfyearandtheannouncementoftheGroup’shalfyearresults.FurtherrestrictionsmayapplyundertheDisclosureandTransparencyrulesoftheFinancialServicesAuthorityinrespectofcertainemployees.

• There are no special rights for the ordinary shares in relation to control of the Company.

Onachangeofcontrol,thefollowingcriteriawillapply:

• ApprovedShareOptionSchemes:underthe1994schemeoptionscanbeexercisedwithinthreemonthsofsuchcontrol being obtained; they will automatically lapse at the end of the period. Under the 2004 approved scheme optionscanbeexercisedwithin30daysofcontrolbeingobtained.Theoptionswilllapseaftersixmonths.

• 2002SeniorEmployeeMatchingShareScheme:optionscanbeexercisedwithinsixmonthsofthetakeover,aftersuch period the options will lapse.

• DeferredProfitSharePlan:AreplacementawardcouldbemadeoversharesintheacquiringCompany,otherwisetheshareswillvestinfullandcanbeexercisedwithinsixmonthsofcontrolbeingobtained.

• ShareIncentivePlan:NoMatchingSharesshallbeforfeitedasaconsequenceofachangeofcontrol.

• EquityAwardPlan:Awardswillvestuponchangeofcontrolandcanbeexercisedwithinonemonthofthetakeover,after such period the options will lapse.

AllnilpaidsharesareheldintheTrustupuntiltheybecomefullypaidshares.NilpaidshareswereissuedaspartoftheSeniorEmployeeMatchingSharePurchaseScheme,detailsofwhicharesetoutonpage58oftheDirectorsRemuneration Report and also note 30. The issue of nil paid shares to the Trust does not reduce shareholders’ funds as the individuals subscribe at the market value on the day of issue.

29. Own shares

£’000

Balance at 30 September 2012 12,569Acquired in the period 157Value of shares to be acquired 8

Balance at 29 September 2013 12,734

The own shares reserve represents the matching shares purchased in the market and held by the Brewin Dolphin Share IncentivePlanandsharespurchasedbytheBrewinDolphinHoldingsPLCEmployeeShareOwnershipTrust.

ThenumberofordinarysharesheldbytheBrewinDolphinShareIncentivePlanat29September2013was374,287(2012:314,920),afurther2,917shareswerepurchasedon7October2013whichrepresents£8,000ofthevalueofshares to be acquired at the end of the period.

ThenumberofordinarysharesheldbytheBrewinDolphinHoldingsPLCEmployeeShareOwnershipTrustat29 September2013was8,401,931(2012:8,117,309).



30. Share-based payments Equity-settled share option schemes

TheGrouphasanumberofshareincentiveplansforthegrantingofnon-transferableoptionstoemployees.

Thedetailsoftheplansareasfollows:

Scheme Vesting Period Exercisable Expiry Date

2004 Approved Share Option PlanThe mid market average on the 3 dealing days immediately preceding date of grant

After the third anniversary of the date of grant provided the performance condition

has been met with an opportunity for retesting after

one further year

5to10yearsfromdate of grant

The tenth anniversary of the date of grant

1994 Approved Executive Share Option SchemeThe mid market average on the 3 dealing days immediately preceding date of grant

Fromthefifthanniversaryofthedateofgrantsubjecttothe performance conditions

being met

5to10yearsfromdate of grant

The tenth anniversary of the date of grant

2002 Senior Employee Matching Share Purchase Scheme The average closing mid market price on the 3 dealing days immediately preceding date of grant

MatchingOption:Fromthefourth anniversary of the date

of grant, upon the payment infullforthePurchased

Shares to which the Matching Optionrelatesandsubjecttosatisfaction of a performance condition determined prior to

the date of grant

4 to 7 years from date of grant

The seventh anniversary

of the date of grant

Detailsoftheshareoptionsoutstandingduringtheperiodended29September2013areasfollows:

1994 Approved

Option Scheme

Weighted Average Exercise

Price (pence)

2004 Approved

Option Scheme


Price (pence)

2002 Senior Employee Matching

Share Purchase

Scheme


Price (pence)

Outstanding at the beginning of the period 200,022 79.93 3,852,094 150.90 2,662,406 152.02 Grantedduringtheperiod – – – – – – Forfeitedduringtheperiod – – (66,923) 141.46 (188,552) 159.68 Exercisedduringtheperiod (70,078) 77.39 (1,123,238) 159.33 (165,056) 157.77 Expiredduringtheperiod – – – – – – Outstanding at the end of the period 129,944 81.30 2,661,933 147.59 2,308,798 150.99 Exercisableattheendoftheperiod 129,944 81.30 940,586 159.80 – –

ThetableaboveandtheonefollowingexcludealloptionsissuedpriortoNovember2002.

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Detailsoftheshareoptionsoutstandingduringtheperiodended30September2012wereasfollows:

1994 Approved

Option Scheme


Price (pence)

2004 Approved

Option Scheme


Price (pence)


Share PurchaseScheme


Price (pence)

Outstanding at the beginning of the period 387,842 65.03 4,117,615 150.89 3,513,646 146.96Grantedduringtheperiod – – 94,250 132.00 – –Forfeitedduringtheperiod (17,000) 58.11 (256,262) 160.31 (725,400) 135.95Exercisedduringtheperiod (170,820) 48.27 (103,509) 109.85 (125,840) 103.30Expiredduringtheperiod – – – – – –Outstanding at the end of the period 200,022 79.93 3,852,094 150.90 2,662,406 152.02Exercisableattheendoftheperiod 200,022 79.93 1,338,556 155.80 168,779 157.00

Theweightedaveragesharepriceatthedateofexerciseforshareoptionsexercisedduringtheperiodwas219p(2012:148p).Theoptionsoutstandingat29September2013hadaweightedaverageexercisepriceof146p(2012:148p),andaweightedaverageremainingcontractuallifeof0.47years(2012:0.76years).Duringthe52weekperiodended29 September 2013 there were no options granted.

TheinputsintotheBlack-Scholesmodelusedforthepurposesofdeterminingfairvalueofoptionswereasfollows:

1994 Approved

Option Scheme

2004 Approved

Option Scheme


Share PurchaseScheme

Weighted average share price 59.40 147.02 136.01 Weightedaverageexerciseprice 59.40 146.06 135.63Expectedvolatility 52% 38% 38%Expectedlife(yrs) 5.00 5.00 4.00 Risk free rate 4.5% 3.6% 4.6%Expecteddividendyield 1.2% 4.2% 3.9%

ExpectedvolatilitywasdeterminedbycalculatingthehistoricalvolatilityoftheGroup’ssharepriceoverthepreviousyear.

Other share based payment plans

Share Incentive Plan (“SIP”)TheGrouphasaShareIncentivePlan(“SIP).Employeesmayusefundsfromtheirgrosssalaryuptoamaximumof10%oftheirgrosssalaryinregularmonthlypayments(beingnotlessthan£10andnotgreaterthan£125)toacquireordinarysharesintheCompany(“PartnershipShares”).PartnershipSharesareacquiredmonthly.ForeveryPartnershipSharepurchased,theemployeereceivesonematchingshareuptothevalueof£20.Allsharestodateawardedunderthisscheme have been purchased in the market monthly; it is the intention of the Directors to continue this policy in the year to September 2013.

Deferred Profit Share Plan (“DPSP”)TheDPSPprovidesforeligibleemployeestoberequiredorinvitedtodefersomeoralloftheirannualprofitshareentitlementintoanawardoverordinaryshares(an“Award”).UndertheDPSPthereiscurrentlyamandatorydeferralof33%ofanyprofitshareinexcessof£50,000foraperiodofthreeyearsandadditionaldeferralrequirementsforExecutiveDirectors which are set out in the Remuneration Report. Employees can elect to voluntarily defer profit share into the plan. Awards are generally in the form of nil cost options to acquire ordinary shares, although at the discretion of the Committee they may also take the form of a conditional right to receive ordinary shares. Awards in the form of mandatory deferrals madetotheemployeeswholeavetheGroupatanytimepriortovestinglapseunlesstheemployeeleavesasaresultofgood leaver provisions. It is the intention of the Board to recommend our Trustees to purchase the shares in the market for any shares awarded under this scheme in order to avoid dilution.



30. Share-based payments (continued) Equity Award Plan (“EAP”)

TheEquityAwardPlanisadiscretionaryarrangementunderwhichcontingentshareawardscanbemadetoselectedemployeeswithintheGroupbelowBoardlevel,forexampletorewardexceptionalperformanceonbehalfoftheGrouporincertaincircumstancestoaidkeystaffretention.Awardswillnormallyvestthreeyearsaftergrantsubjecttocontinuedserviceprovisions.AwardswillonlybecapableofbeingsatisfiedwithexistingsharessourcedviatheCompany’semployeebenefittrust.Nonewlyissuedsharesand/ortreasurysharescanbeusedundertheEAP.Onlynon-directoremployees are eligible for selection to participate in the plan.

TheGrouprecognisedtotalexpensesintheperiodof£6,135,000(2012:£3,852,000)relatedtoequity-settledshare-basedpaymenttransactions.

31. Operating lease arrangements TheGrouprecognisedoperatingleasespaymentsasanexpenseintheyearasfollows:

2013 2012 Land and buildings

Hire of equipment

Land and buildings

Hireofequipment

£’000 £’000 £’000 £’000

Lease payments 8,167 753 6,869 1,822

8,167 753 6,869 1,822

Atthebalancesheetdate,theGrouphadoutstandingcommitmentsforfutureminimumleasepaymentsundernon-cancellableoperatingleases,whichfalldueasfollows:

2013 2012 Land and buildings

Hire of equipment

Land and buildings

Hireofequipment

£’000 £’000 £’000 £’000

Amountspayableunderoperatingleases:Within one year 8,380 267 8,436 587In the second to fifth years inclusive 30,750 133 31,476 311 After five years 51,387 – 58,772 –

90,517 400 98,684 898

TheGrouphadsignificantoperatingleasearrangementswithrespecttothepremisesitoccupies,computerhardwareand office equipment including photocopiers and franking machines.

32. Capital commitments

2013 2012£’000 £’000

Expenditurecontractedforbutnotprovidedintheseaccounts 9,223 14,437

Expenditureauthorisedbythedirectorsbutnotcontractedfor 8,250 5,705

DetailsofthemajorcomponentofCapitalCommitmentsarecontainedintheStrategicReport.

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33. Provisions

Sundry claims and associated

costsOnerous

contracts Total£’000 £’000 £’000

At start of period 1,887 – 1,887 Additions 1,886 6,232 8,118 Utilisation of provision (448) (797) (1,245)Unwinding of discount – 18 18 Unused amounts reversed during the period (1,113) – (1,113)

At end of period 2,212 5,453 7,665

ProvisionsIncluded in current liabilities 2,212 2,193 4,405

Includedinnon-currentliabilities – 3,260 3,260

2,212 5,453 7,665

Thetimingofsettlementsofsundryclaimsandassociatedcostscannotbeaccuratelyforecast;settlementof£nil(2012:£nil)hasbeenmadesincethebalancesheetdate.£5moftheonerousleaseprovisionisinrespectofsurplusofficespacewhichtheGroupmaynotbeabletosubletintheshortterm.Inrelationtoonerousleasecontracts,themaximumexposureisthecurrentestimatedamountthattheGroupwouldhavetopaytomeetthefutureobligationsundertheseleasecontracts,whichisapproximately£23millionasat29September2013.



34. Notes to the cash flow statement


2013

52weeksto30 September

2012£’000 £’000

Group

Operating profit from continuing operations 26,632 29,099 Lossfortheperiodfromdiscontinuedoperations(note13) – (3,507)Adjustmentsfor:

Depreciation of property, plant and equipment 5,569 7,214

Amortisationofintangibleassets–clientrelationships 12,520 11,871

Amortisationofintangibleassets–software 3,021 3,563Loss on disposal of property, plant and equipment 591 105Lossondisposalofintangibleasset–purchasedsoftware 117 –Retirement benefit obligation (2,995) (2,991)Share-basedpaymentexpense 6,135 3,852Ownsharesdisposedofonexerciseofoptions – (8)Translationadjustments 147 (196)Interest income 1,016 1,383Interestexpense (17) (30)

Operating cash flows before movements in working capital 52,736 50,355Increase/(decrease)inpayables 44,471 (24,375)(Increase)/decreaseinreceivablesandtradinginvestments (30,431) 14,910

Cash generated by operating activities 66,776 40,890Taxpaid (6,260) (5,911)

Netcashinflowfromoperatingactivities 60,516 34,979

CompanyOperating profit 19,721 16,332 Adjustmentsfor:

Unwind of discount of shares to be issued 27 34

Operating cash flows before movements in working capital 19,748 16,366 (Increase)/decreaseinreceivables (44,239) 1,654

Cash generated by operating activities (24,491) 18,020Taxpaid – –

Netcash(outflow)/inflowfromoperatingactivities (24,491) 18,020

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35. Related party transactionsTransactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation. The captions in the primary statements of the Company include amounts attributable to subsidiaries. These amounts havebeendisclosedinaggregateintherelevantnotestothefinancialstatementsandindetailinthefollowingtable:

Amounts owed by related parties

Amounts owed to related parties

2013 2012 2013 2012£’000 £’000 £’000 £’000

Bell Lawrie White & Co. Limited – – 2,436 2,436 Brewin Dolphin Limited 44,544 209 – –Tilman Brewin Dolphin Limited – – – –Stocktrade Broking Limited – – 4,900 4,900

44,544 209 7,336 7,336

All amounts owed by related parties are interest free and repayable on demand.

The only effect of related party transactions on the profit and loss of the Company was in respect of dividends. The Companyreceiveddividendsof£20m(2012:£17m)fromBrewinDolphinLimited.

TheGroupcompaniesdidnotenterintoanytransactionswithrelatedpartieswhoarenotmembersoftheGroupduringthe period, save as disclosed elsewhere in these financial statements.


Five Year Record – continuing operations

2013 £’000

2012 £’000

2011 £’000

2010 £’000

2009 £’000

Continuing operationsRevenue 271,954 253,112 248,375 224,013 178,944Other operating income 11,724 16,419 15,638 15,999 25,071

Total income 283,678 269,531 264,013 240,012 204,015

Staff costs (148,974) (133,242) (126,456) (113,817) (98,947)Other operating costs (83,418) (94,196) (98,409) (87,326) (74,712)ExceptionalitemsAdditionalFSCSlevy (1,107) (553) (6,058) (595) –Redundancy costs (4,795) (570) (1,008) (135) (3,393)Onerous contracts provision (6,232) – – – –Acquisition of subsidiary – – (228) – –Contract renewal payments – – – (2,090) –

Amortisationofintangibleassets–clientrelationships (12,520) (11,871) (10,486) (6,349) (6,566)

Operatingexpenses (257,046) (240,432) (242,645) (210,312) (183,618) Profit on ordinary activities excluding exceptional items and amortisation of intangible assets – client relationships 51,286 42,093 39,148 38,869 30,356Intangible asset client relationship amortisation (12,520) (11,871) (10,486) (6,349) (6,566)One-offitemslistedabove (12,134) (1,123) (7,294) (2,820) (3,393)

Operating profit 26,632 29,099 21,368 29,700 20,397Netfinanceincome 1,939 784 494 345 1,467

Profitbeforetax 28,571 29,883 21,862 30,045 21,864Tax (7,297) (8,389) (6,884) (9,447) (6,383)

Profit attributable to equity shareholders of the parent from continuing operations 21,274 21,494 14,978 20,598 15,481

Dividend per share 8.6p 7.15p 7.1p 7.1p 7.1p

Earnings per shareFromcontinuingoperationsbeforeamortisationofclientrelationshipsandoneoffitemslistedabove.

Basic 15.8p 13.2p 12.4p 12.2p 10.8pDiluted 14.9p 12.5p 11.7p 12.0p 10.6p

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Shareholders at 11 November 2013

TherewerechangesinDirectors’shareholdingsbetween29September2013and11November2013;thechangeswereinrelationtotheBrewinDolphinShareIncentivePlan.

Numberofordinary shares#,

shares to be issued

(seenote25) and options

%Voting equity after

exercise of options

Numberofordinary shares#

%Voting equity prior to

exerciseofoptionsDirectorsAngela Knight 2,583 2,583Sir Stephen Lamport 4,950 4,950Simon Miller 50,000 50,000Michael Williams 1,094,893 969,477 Jock Worsley 18,000 18,000Andrew Westenberger – –DavidNicol 58,000 58,000StephenFord 538,985 195,111

1,767,411 0.6% 1,298,121 0.5%

OtheremployeesoftheGroup 64,042,221 21.8% 49,130,526 18.0%Sharestobeissued(seenote25)* 5,396,670 1.8% – –

Employee Ownership 71,206,302 24.2% 50,428,647 18.5%

InstitutionsKames Capital 25,663,364 8.8% 25,663,364 9.4%FILInvestmentInternational 21,700,531 7.4% 21,700,531 8.0%Royal London Asset Mgt 13,612,865 4.7% 13,612,865 5.0%AberforthPartners 13,242,314 4.5% 13,242,314 4.9%NorgesBankInvestmentMgt 9,868,695 3.4% 9,868,695 3.6%Legal&GeneralInvestmentMgt 8,518,061 2.9% 8,518,061 3.1%JPMorganAssetMgt 6,080,120 2.1% 6,080,120 2.2%Unicorn Asset Mgt 5,954,104 2.0% 5,954,104 2.2%Aviva Investors 5,490,771 1.9% 5,490,771 2.0%Other 112,280,506 38.1% 112,280,506 41.1%

Total 293,617,633 100.0% 272,839,978 100.0%*Sharestobeissuedareesimatedusingthesharepriceasat11November2013

#Nilpaid,fullypaidandsharesheldintheSIP

At29September2013theCompany’ssharepricewas265p(2012:168p).Thehighestpriceintheperiodwas283pandthelowest168p.


Appendix – Calculation of KPIs

Revenue Growth1. Discretionary FUM inflowsarecalculatedfromtheGroup’sclientdatabase.Thegrowthof6%(seepage13)net

inflows is derived from the total new client accounts opened, closed or transferred between services categories duringtheyear.Thisfiguretotals£1.1bnovertheopeningdiscretionaryfundvalue£18.2bn,showinganincrease of6%.

2. Discretionary service yield and managed advisory service yield shows the core commission and fee income overtheaveragefundsfortheyearforeachservicetype.CoreDiscretionaryIncomein2013:£192.7m(2012:£156.3)averageFUM£20.03bn(2012:£17.2bn),coreAdvisoryManagedIncome2013:£27.5m(2012:£23.3m)averageFUM£4.9bn(2012:£5.1bn)resultingina91-96bpsyieldforDiscretionaryand46-56bpsforAdvisoryManaged.

3. Revenue Growthof9%istheTotalIncomeincreasefrom£260.4min2012to£283.7min2013(seefinancialhighlightspage).

Improved Efficiency4. Adjusted PBT marginiscalculatedbytakingtheadjustedprofitbeforetax(adjustedforredundancycosts,

additionalFSCSlevy,onerouscontractsprovision,amortisationofclientrelationshipsanddisposalofavailable-for-saleasset)of£52.3min2013(2012:£42.9m)overtheTotalIncomeof£283.7m(2012:£260.4m).

5. Discretionary income per CF30;thetotalregisteredCF30’s(InvestmentManagersandFinancialPlanners)fortheGroupis521(2012:553)employees,totaldiscretionaryincomeisstatedas£192.7m(2012:£156.3m)showinganincomeperadviserincreasefrom£283k-£369k.

6. Percentage of managed FUM in discretionary servicefrom70-76%iscalculatedbyusingthetotaldiscretionarymanagedfunds£21.3bn(2012:£18.2bn)overthetotalmanaged/advisedfundsfortheGroup£28.2bn(2012:£25.9bn)(seepage13).

7. Discretionary FUM per CF30isbasedonthenumberofCF30’sasperpoint5aboveoverthetotalofdiscretionarymanagedfundsasperpoint6above£41m(2012:£33m).

8. The support staff to CF30 ratioof2.5to1isderivedbytakingallothernonCF30stafftotalling1297employees(excludingstocktrade)tothe521CF30registeredstaff.

9. Average client portfolio size is calculated by dividing the number of clients by the total managed funds.

Capital Sufficiency10. The Solvency ratio is calculated by using our Regulatory Capital equity over the assessment of capital requirement

see note 26.

Dividend Growth11. The Group’s dividend pay-out is calculated by using the total dividend for the year over the diluted earnings per

share14.9p(2012;12.5p).Thedividendfortheyearincludingtheproposedfinaldividendof5.05pis8.6p(2012:7.15p)givinga58%dividendpay-out.

12. Adjusted earnings per share growthrateof19%showstheincreaseindilutedearningspershareof14.9p(2012:12.5p)(seefinancialhighlightspage)

13. Dividend growththetotaldividendpaidbytheGroupin2013is8.6p(2012:7.15p)thisshowsa20%growthratefor dividends paid.

123

Directors, Secretary and Officers

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Directors(includingCommitteeMembership)

Chairman Committees

Simon Miller Non-Executive Chairman (n)(r)

Executive Directors

DavidNicol,CharteredFCSI,CA Chief Executive (n)AndrewWestenberger,FCA Finance DirectorStephenFord,FSI,CAIA Head of Investment Management MichaelWilliams,FCSI

Non-Executive Directors Committees

IanDewar,FCA,MA(Cantab) (a)Angela Knight, CBE (a)(n)(r)(rk)Sir Stephen Lamport, KCVO, DL (a)(n)(r)(rk)Francis(Jock)Worsley,OBE,FCA (a)(n)(r)(rk)

(a)MemberoftheAuditCommittee;(n)MemberoftheNominationCommittee;(r)MemberoftheRemunerationCommittee;(rk)MemberofRiskCommittee.

Secretary Louise Meads, ACIS

Company Registration Number 2685806(EnglandandWales)

Registered Office 12 Smithfield Street London EC1A 9BD Telephone:02072484400(UKonly) +442072484400(International)

Websites: www.brewin.co.uk www.stocktrade.co.uk

Officers and Advisers Registrars Equiniti Limited POBox4630 AspectHouse Spencer Road, Lancing WestSussex,BN996DA

Principal Bankers Bank of Scotland PentlandHouse(2ndFloor) 8LochsideAvenue EdinburghEH129DJ

Solicitors LawrenceGrahamLLP 4 More London Riverside London SE1 2AU

Auditor DeloitteLLP HillHouse 1LittleNewStreet London EC4A 3TR

Financial Adviser and Joint Stockbrokers Royal Bank of Canada Europe Ltd Thames Court One Queenhithe London EC4V 4DE

Joint Stockbrokers: CanaccordGenuityLimited 88WoodStreet London EC2V 7QR

http://www.brewin.co.uk

http://www.stocktrade.co.uk


Branch Address List

Aberdeen 2ndFloor BlenheimHouse FountainhallRoad AberdeenAB154DTT 01224 267 900 F 01224 267 901

Belfast 6thFloor WaterfrontPlaza 8LaganbankRoad Belfast BT1 3LYT 02890446000 F 02890446001

Birmingham 9 Colmore Row Birmingham B3 2BJ T 01217103500 F 0121 212 0011

BrightonInvictaHouseTrafalgarPlaceBrighton BN14ZGT 01273 667 220 F 01273 667 221

Bristol4thFloorTheParagonCounterslip Bristol BS1 6BXT 01179689500 F 01179689501

Cardiff 2ndFloor 5CallaghanSquare Cardiff CF105BTT 02920 340 100 F 02920 344 999

Cheltenham 2ndFloor StJamesHouse St James’ Square CheltenhamGL503PRT 01242577677 F 01242586822

Chester LiverpoolHouse Lower Bridge Street Chester CH11RST 01244353900 F 01244353900

Dorchester HamiltonHouse 6NantilloStreet Poundbury,Dorchester DorsetDT13WNT 01305215770 F 01305215771

Dundee 31-32CityQuayCamperdown Street Dundee DD1 3JAT 01382317200 F 01382317201

EdinburghSixthFloor Atria One 144 Morrison Street EdinburghEH38EXT 01312252566 F 01312253134

ExeterVantagePoint WoodwaterPark PynesHill,Exeter DevonEX25FDT 01392440450 F 01392440451

Glasgow48StVincentStreet Glasgow G25TS T 0141 221 7733 F 01413148142

Guernsey 1stFloor 10 Lefebvre Street StPeterPort GuernseyGY12PET 01481736682 F 01481729910

IpswichFelawMaltings 44FelawStreet Ipswich SuffolkIP28SJT 020 3201 3113

Jersey 2ndFloor,KingsgateHouse 55TheEsplanade StHelier Jersey JE2 3QBT 01534703000 F 01534731910

Leeds 34 Lisbon Street Leeds LS1 4LX T 01132459341 F 01132435666

LeicesterTwo Colton Square Leicester LE11QF T 01162 420 700 F 01162536585

LincolnOlympicHouse Doddington Road Lincoln LN63SET 01522503000 F 01522503050

London12 Smithfield Street London EC1A 9BD

T 02072484400 F 020 3201 3001

LymingtonWest Barn EffordPark Milford Road Lymington SO41 0JDT 01590687920 F 01590687949

Manchester1 The Avenue Spinningfields Square Manchester M33APT 01618394222 F 01618329092

Marlborough Woodstock Court Blenheim Rd Marlborough WiltshireSN84ANT 01672519600 F 01672515550

NewcastleTime Central Gallowgate NewcastleuponTyne NE14SRT 0191 279 7300 F 0191 279 7301

NorwichJacquardHouse Old Bank of England Court Queen Street NorwichNR24SXT 01603 767 776 F 01603 767 476

Nottingham1stFloor,WaterfrontHouse WaterfrontPlaza 35StationStreet NottinghamNG23DQT 01158525580 F 01158525581

Oxford4 King Edward Street Oxford OX14HS T 01865255750 F 01865255751

Penrith 1MasonCourt,GillanWayPenrith40BusinessParkPenrith,Cumbria CA119GRT 01768861710F 01768861711

PlymouthAshleigh Court Ashleigh Way LangageBusinessPark PlymouthPL75JXT 01752334650 F 01752334651

Reigate45LondonRoad Reigate Surrey RH29PYT 01737 223 722 F 01737224848

ShrewsburyMutualHouse,SitkaDrive,ShrewsburyBusinessPark Shrewsbury, Shropshire SY26LGT 01743284230 F 01743284231

Taunton2ndFloorAshfordCourt BlackbrookBusinessPark BlackbrookParkAvenue Taunton,SomersetTA12PXT 01823445750 F 01823445751

TruroCMAHouse NewhamRoad Newham Truro TR1 2SUT 01872265610 F 01872265611

YorkApolloHouse Eboracum Way York YO31 7RET 01904435600 F 01904435601

Thepaperusedinthisreportismadefrom50%recycledpost-consumerwaste. BothmillandprinterareFSCCertified,ourprinterisalso“CarbonNeutral”accredited.

Brewin Dolphin provides a range of investment management, financial advice and execution only services in the UK and Eire.

“Our priorities are clear. They are to reinforce our high standard of service to clients and ensure an improved return to shareholders. Discretionary Investment Management is currently the core of our business model and our mission is to provide a compelling and consistent offering, relevant to all our clients. Over the past decade we have evolved from a stockbroker into a private client investment manager. Our evolution must continue as we strive to become the leading provider of personal Discretionary Wealth Management in the UK.” David Nicol, Chief Executive

Investment proposition• Strongclientrelationshipswithalong-termtrackrecordofpersonalisedservice

• Growthmarketwithgoodlong-termprospects

• Newmanagementteamwithcleargoalsandastrategytoachievethem

• Ourstrategywillgeneratevalueforallstakeholders

We are already creating value in 2013• Totalincomegrewby9%to£283.7m

• Adjustedprofitbeforetaxgrewby22%to£52.3m

• Adjustedprofitmarginincreasedfrom16.5%to18.5%

• Discretionaryfundsundermanagement(FUM)grewby17%to£21.3bn

• Adjustedearningspershare(EPS)grewby19.2%to14.9p(2012:12.5p)

• Fullyeardividendincreasedby20%to8.6p

• TotalShareholderReturnwas63%

Brewin Dolphin Holdings PLC, 12 Smithfield Street, London EC1A 9BD

T 020 7246 1000 F 020 3201 3001 W brewin.co.uk E [email protected]

Annual R

eport and Accounts 2013

Annual Report and Accounts 2013

Documents

Annual Report and Accounts 2013 - brewinmedia.co.uk