Brewin Dolphin sell Stocktrade business in £14m deal

The wealth managers' Edinburgh-based execution only business has been sold to Alliance Trust Savings

David Nichol, chief executive officer at Brewin Dolphin
David Nichol, chief executive officer at Brewin Dolphin

Wealth managers Brewin Dolphin have sold their Stocktrade business to Alliance Trust Savings in a deal worth £14m.

The “execution only” division — distinct from Brewin’s advisory services — is based in Edinburgh, and at the end of September 2014 had assets under administration of £4.3bn.

Stocktrade, which is aimed at investors who confident enough to initiate trades without advice, had income of £9.6m and contributed roughly £1.3m to Brewin’s pre-tax profit.

Brewin, which has a strong presence in Newcastle, expect to gain around £1m from the deal which will be used for general purposes but also point to increased efficiencies which are anticipated to offset the loss of Stocktrade’s contribution.

As part of the transaction the divisional directors responsible for Stocktrade, Graham Swan and Nicholas Pearson, will stay with the business in senior management roles.

Existing Stocktrade staff in Edinburgh will transfer to Alliance Trust Savings on completion of the deal, which, subject to regulatory approval, is expected this year.

David Nicol, chief executive officer at Brewin Dolphin, said: “The sale of Stocktrade is a good result for shareholders, customers and colleagues. It is consistent with our strategy of streamlining and simplifying the Group’s operations and will help further enhance shareholder value by allowing us to continue to focus on growing our core wealth management business.

“We believe Stocktrade customers and colleagues will benefit from being part of an organisation that will provide further investment and enhancement of Stocktrade’s service.”

Patrick Mill, managing director of Alliance Trust Savings, added: “Stocktrade is a great strategic fit for ATS, giving us access to new customers, an increase in assets and the opportunity to build a strategic partnership capability.

“It also gives us the ability to align a traditional stockbroking business with our innovative, scalable and cost-effective approach by offering customers online access alongside our in-house customer service team.

“Our priority now is to focus on driving growth organically and profitably through the three channels, direct, intermediaries and strategic partnerships.”

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