17 August 2022

This is a preliminary statement of annual results published in accordance with FCA Listing Rule 9.7A.

It covers the year ended 31 December 2017.

Mark Nicholls, Chairman of Rathbones Group Plc, said:

“UK and global investment markets performed well in 2017, with some indices reaching record levels towards the end of the year. This outcome has been positive for both Rathbones and our clients, with our funds under management reaching a record £39.1 billion, up 14.3% in the year.

“Notwithstanding some caution, which naturally emerges at a time of high investment markets and political uncertainty, we enter 2018 well positioned to provide long-term value for shareholders.”

Highlights:

  • Underlying profit before tax increased 16.8% from £74.9 million to £87.5 million for the year ended 31 December 2017. Underlying profit margin remained strong at 30.6% compared to 29.8% in 2016. Underlying earnings per share increased 13.7% to 138.8p (2016: 122.1p).
  • Profit before tax increased 17.6% from £50.1 million to £58.9 million. Basic earnings per share increased 17.5% to 92.7p (2016: 78.9p).
  • The board recommends a final dividend of 39p for 2017 (2016: 36p), making a total of 61p for the year (2016: 57p), an increase of 7.0% on 2016.
  • Total funds under management were £39.1 billion at 31 December 2017, up 14.3% from £34.2 billion at 31 December 2016. The FTSE 100 Index increased by 7.6% and the MSCI WMA Private Investor Balanced Index increased by 7.2% over the same period.
  • The total net annual growth rate of funds under management for Investment Management was 3.9% (2016: 4.5%). This comprised £0.9 billion of net organic growth (2016: £0.8 billion) and £0.3 billion of acquired inflows (2016: £0.4 billion). The underlying rate of net organic growth was 3.0% in 2017 (2016: 2.9%).
  • Underlying operating income in Investment Management of £254.6 million for the year ended 31 December 2017 (2016: £226.3 million) was up 12.5%, driven by higher investment markets and continued organic and acquired growth in all business areas. The average FTSE 100 Index was 7426 on quarterly billing dates in 2017, compared to 6659 in 2016, an increase of 11.5%.
  • Funds under management in Unit Trusts were £5.3 billion at 31 December 2017 (31 December 2016: £4.0 billion) and net inflows totalled £883 million in the same period (2016: £554 million). Underlying operating income in Unit Trusts was £31.4 million in the year ended 31 December 2017, an increase of 25.6% from £25.0 million in 2016.
  • Underlying operating expenses of £198.5 million (2016: £176.4 million) increased 12.5% year-on-year largely due to continuing investment in strategic initiatives and underlying growth in the business.

Read the full statement here.

For further information contact:

Rathbones Group Plc
Tel: 020 7399 0000
email: shelly.patel@rathbones.com

Philip Howell, Chief Executive

Paul Stockton, Finance Director

Shelly Patel, Investor Relations Manager

Camarco
Tel: 020 3757 4984
email: ed.gascoigne-pees@camarco.co.uk

Ed Gascoigne-Pees