Rathbones profits rocket
RATHBONE Brothers, the listed wealth management firm, has posted a sparkling set of first half results which saw profits and assets soaring.
Underlying pre-tax profits, excluding the impact of regulatory levies for industry compensation schemes and the cost of an office move, were up by a third at £24.2m, significantly ahead of market expectations.
The company, whose roots date back to 1742 when it was founded in Liverpool as a timber trader, still has an office in its home city as well as more than 10 other locations including Kendal and Birmingham.
Its HQ in the City of London.
Assets grew nearly 5%, far outpacing growth in financial markets as investors continued to buy into its fund products.
Total funds under management were up 4.7% over the period, compared with a 0.9% rise in the FTSE APCIMS Balanced Index, a performance measure for wealth managers.
Chief executive Andy Pomfret said the company’s outlook remained confident but cautioned about risk from the European debt crisis.
“Uncertainties surrounding financial markets are continuing, in particular the increased potential for future adverse events impacting the European banking sector,” he said in the earnings statement.
“Notwithstanding this uncertainty, we look to the future with confidence as Rathbones remains well positioned to take advantage of growth opportunities.”
Total funds under management were £16.36bn at June 30, up 4.7% from £15.63bn at the end of 2010.