Wealth management specialist in ‘robust’ position after strong first half

Paul Stockton

Rathbone Brothers, the Liverpool wealth management company, said it has entered its second half of the financial year in a “robust” position.

Announcing results for the six months to June 30, today, the Port of Liverpool Building-based firm revealed pre-tax profits of £48.795m, up from £27.281m.

Total funds under management and administration reached £59.2bn, up 8.2% from £54.7bn at December 31, 2020, and up 19.8% compared with £49.4bn at June 30, 2020. This comprised £47.8bn in the Investment Management business (June 30, 2020: £41.4bn), and £11.4bn in the Funds business (June 30, 2020: £8bn).

Total net inflows in Investment Management were £500m in the first six months of 2021, against £800m a year ago. Net organic inflows in the first half of the year totalled £400m, against £300m at June 30, 2020, and purchased inflows totalled £100m, compared with £500m last year, reflecting the acquisition of Barclays Wealth’s Personal Injury and Court of Protection business.

Net inflows in the Funds business were £1bn in the first half of 2021, against £600m last year.

Operating income totalled £213.5m in the first half of 2021, 19.3% ahead of the prior year’s £179m figure.

Income in Investment Management totalled £184.8m in the first six months of 2021, an increase of 16.4% on the prior period.

Income in the funds business totalled £28.7m in the six months ended June 30, 2021, an increase of 41.4% on the £20.3m reported in the first half of 2020.

The group said that, in line with its progressive dividend policy, it has increased the interim dividend by eight per cent to 27p, compared with 25p per share last year, reflecting the confidence in its medium term prospects and the strength of the balance sheet.

Chief executive, Paul Stockton, said: “Investment markets improved in the first half of 2021 as sentiment began to look beyond the pandemic.

“Continued organic growth also helped increase our funds under management and administration to £59.2bn at 30 June 2021, up 8.2% from £54.7bn at 31 December 2020, and up 19.8% from £49.4bn at 30 June 2020.

“Following a strong set of year to date financial results we enter the second half of 2021 in a robust position.

“The acquisition of Saunderson House, announced on 23 June 2021, accelerates our financial advice strategy, and presents an exciting opportunity to explore wider UK wealth segments.

“The deal continues to be on track to complete during the third quarter of 2021, adding c£4.7bn of funds under management and administration.”

He added: “We continue to focus on delivering high quality services to our clients and developing our services. The UK wealth market is changing quickly, and Rathbones remains well positioned to take advantage of future growth opportunities.”