Released: 24 July 2008
24 July 2008
Rathbone Brothers Plc
Interim results for the 6 months to 30 June 2008
Profits up and strong organic growth at Rathbones despite volatile markets
Rathbone Brothers Plc, a leading provider of high quality, personalised discretionary investment management and wealth management services for private investors and trustees, announces its interim results for the half year ended 30 June 2008.
Financial highlights:
- Excluding results of the potential disposal of the Jersey and Singapore Trust businesses, profit before tax from continuing operations for the first half of the year was £24.0 million (30 June 2007: £23.4 million).
- Operating income from continuing operations increased by 3.4% to £70.2 million (30 June 2007: £67.9 million).
- Basic earnings per share from continuing operations rose by 2.3% to 41.0p (30 June 2007: 40.0p).
- Interim dividend per share remains at 16.0p (2007: 16.0p) and is payable on 8 October 2008.
Operating highlights:
- Recruitment of Paul Stockton as Finance Director, who starts in August.
- Planned disposal to management of trust businesses in Jersey and Singapore (as announced on 17 July 2008).
- Total funds under management decreased by 8.6% over the six months period to 30 June 2008 to £12.0 billion (from £13.1 billion as at 31 Dec 2007) compared with a decrease in the FTSE/APCIMS Balanced Index of 9.8% and a fall in the FTSE 100 of 12.9% over the same period.
- Net organic growth in funds under management within Rathbone Investment Management, which accounts for 87.5% of Group funds under management was 8.2%.
Mark Powell, chairman of Rathbone Brothers Plc, commented:
“Our results for the half year to 30 June 2008 show further progress for Rathbones, and at 8.2%, the highest underlying rate of net organic growth in funds under management in our core business that we have reported. In spite of the volatile and difficult conditions in financial markets, we have also increased profits in our continuing operations to £24 million.
Our intention to dispose of our trust businesses in Jersey and Singapore reflects the changing climate for the use of offshore structures and services, and a belief that these businesses are best owned offshore by their management. We are confident that our trust and tax services in the UK will continue to form an important part of our offering to clients, through all of our offices in the UK. It will not affect our offshore investment management business in Jersey (Rathbone Investment Management International).
The uncertainties and volatilities created by the crisis in credit markets may provide attractive investment opportunities for the longer-term and call for precisely the investment management skills that we seek to provide to all of our clients. We face the medium and long-term future with guarded optimism.”
ENDS
For further information contact:
| Rathbone Brothers Plc | 020 7399 0000 |
| Mark Powell, Chairman | |
| Andy Pomfret, Chief Executive | |
| Emily Morris, Marketing Director | |
| Smithfield | |
| Reg Hoare/Miranda Good | 020 7360 4900 |
Notes for editors:
Rathbone Brothers Plc
Rathbone Brothers Plc specialises in providing, through its
subsidiaries, high quality, personalised investment management and
wealth management services for private investors and trustees,
including discretionary fund management, unit trusts, tax planning,
trust and company management, pension and banking services. It
manages £11.99 billion of funds, including £1.5 billion
managed by Rathbone Unit Trust Management Limited (as at 30 June
2008).
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