Strong first half for Rathbone Brothers
Wealth and investment management group Rathbone Brothers posted improved half year results today.
The firm, which has a key office in Liverpool’s Port of Liverpool Building, reported a pre-tax profit of £43.676m for the half year to June 30, compared with £26.586m in the same period last year.
Net fee and commission income reached £143.377m, up from £133.964m previously, while net interest income of £6.903m compared with £5.6m the previous year.
The firm said the pre-tax figure not only reflects its underlying performance, but also a number of significant non-underlying items in 2017, which have not recurred in 2018.
The board has recommended a 24p interim dividend for 2018, up from 22p per share last year.
Total funds under management at June 30, were £39.9bn, up 2% from £39.1bn at December 31, 2017. This compared with a decrease of 0.7% in the FTSE 100 Index.
Total net organic and acquired growth in the funds managed by Investment Management was £500m in the first six months of 2018, representing a net annual growth rate of 2.5% (2017: 4.0%).
Net organic growth of £400m for the first half represents an underlying annualised rate of net organic growth of 2.1% (2017: 2.9%).
In June the firm announced the acquisition of Speirs & Jeffrey, Scotland’s largest independent wealth manager with funds under management of £6.7bn as at May 10, 2018.
Rathbones said this is an exciting opportunity for, adding a like-minded business with a similar culture to its own and further strengthening Rathbones’ long-held commitment to Scotland.
Synergies arising from the combined business will have many benefits for stakeholders, including creating capacity to invest in the firm’s people, processes and infrastructure, as well as achieving additional strength and scale in the market.
The acquisition awaits regulatory approval and, as a result, is not due to complete until later this year, but work has commenced on a detailed plan to bring the business seamlessly into the group.
A joint statement by chairman Mark Nicholls and chief executive Philip Howell saied: “During the second half of the year, we will continue to prioritise the investment of time and financial resources in our investment management business, seeking to improve our services and the efficiency of our infrastructure.
“Alongside this, we will also focus on completing the Speirs & Jeffrey acquisition and planning for its successful transition into the Rathbones family.
“This six month period has been a positive one for Rathbones and we remain confident in the outlook for the business.”
