Brewin Dolphin’s £ 38m Investec deal bolsters presence in Irish market
I nvestment group Brewin Dolphin has strengthened its presence in Ireland with a £ 38 million deal to buy Investec’s wealth management operation there.
Brewin Dolphin’s chief executive David Nicol said the deal, which was trailed last month, would put the firm in a stronger position to benefit from demand in one of Europe’s fastest growing economies.
The announcement came as the group, which employs more than 200 at its offices in Scotland, announced plans to raise £ 60m in a share placing and released first- half results which showed a fall in profits despite rising income.
Brewin Dolphin already has a sizeable presence in Ireland following the purchase of fund manager Tilman in a £ 30m deal in 2011.
Nicol said the Investec deal would enable the firm to benefit from Ireland’s growing demand for wealth ser vices, “supported by favourable demographics with the country having the youngest population in Europe”.
Brewin Dolphin’s i ncome rose slightly to £ 162.3m in the first half of the year, but profit before tax and adjusted items fell by more than 8 per cent to £ 35.6m.
Nicol said t he group has continued to deliver “strong and resilient organic growth, even with t he backdrop of volatile market conditions” and highlighted a number of recent acquisitions and plans to upgrade its technology systems.
“We are investing in our business to support future longterm growth. These initiatives are laying the foundations for long- term growth and will ensure that we are well placed to capture market opportunities,” he said.
The group noted that funds raised from a share placing will provide it with “flexibility for further development opportunities”.