Unicorn UK Income manager John McClure said wealth manager Brewin Dolphin has the potential to increase margins by over 50% as it catches up with its peers in the sector.
The manager said Brewin has strong prospects for growth as it stands to benefit from consumers' dissatisfaction with traditional financial institutions. "The business has been tidied up and has a brand name attached. It is very much a margin play. Rathbones makes 30% gross margins and Brewin makes 18%, so there is clearly scope for improvement," he said. Brewin is the second largest holding in McClure's top performing £40m UK Income fund as of the end of March, at 5.2% of the portfolio, and has a current dividend yield of 4.2%. "It has got the yield and is part of a very active sec...
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