Brewin Dolphin sees profits fall as it adds staff while clients hold back

Wealth manager Brewin Dolphin had thinner profits due to a West End hiring spree and clients holding back from moving money into the firm.

It doubled spending this year from £8 million to £16 million, and £1.4 billion of inflows were down from £2.3 billion last time.

“Clients have been a little more reluctant to move funds around,” said chief executive David Nicol. “This level of growth is better than most of our competitors who are flat or down.”

Brewin invested in areas such as boosting the number of client-facing staff at its high-end service 1762, in palatial offices off Piccadilly, from 17 to 44 advisers and upgrading technology.

The extra staff plus other employee costs set Brewin back £9.6 million in total

Pre-tax profits were 3.2% lower at £75 million from a year ago.

The company is set to move to new offices opposite St Paul’s Cathedral in 2022. Assets under management now stand at £45 billion.

RBC analysts said Brewin was “particularly well placed to perform in 2020 if macro uncertainty lifts”.