Brewin’s profit slashed by IT upgrade fail

 
Tim Wallace
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WEALTH manager Brewin Dolphin’s pre-tax profits dived by 70 per cent in the past year, the firm reported yesterday.

A £12.1m IT project writedown contributed to the poor figures – pre-tax profits came in at £8.6m, down from £28.4m in the previous 12-month period. It had planned to roll out a new software system to save costs and cut staff, but cancel­led the scheme this year after it became bogged down and delayed.

Revenues increased two per cent to £290.5m, with fee income up 17 per cent to £177.3m.

But commis­sion income fell five per cent to £88.6m. Analysts argued the firm has potential to bounce back.

Brewin Dolphin’s shares rose 3.73 per cent to 289.20p.