Funds under management up 17.1% to £34.2 billion
It covers the year ended 31 December 2016.
Mark Nicholls, Chairman of Rathbone Brothers Plc, said:
“After a nervous start to 2016, the FTSE 100 performed increasingly strongly as the year progressed, largely reflecting the impact of a sharp fall in sterling after the EU Referendum vote. Nevertheless, the recovery in the second half had a favourable impact on our financial performance, helping our total funds under management to grow by 17.1% to £34.2 billion.
“In spite of continuing political and economic uncertainties, we will pursue our planned strategic growth initiatives and continue to take advantage of growth opportunities in the sector.”
- Total funds under management were £34.2 billion at 31 December 2016, up 17.1% from £29.2 billion at 31 December 2015. The FTSE 100 Index increased by 14.4% and the FTSE WMA Balanced Index increased by 13.6% over the same period.
- The total net annual growth rate of funds under management for Investment Management was 4.5% (2015: 5.7%). This comprised £0.8 billion of net organic growth (2015: £0.7 billion) and £0.4 billion of acquired inflows (2015: £0.7 billion). The underlying rate of net organic growth was 2.9% in 2016 (2015: 3.0%).
- Unit Trusts saw gross sales of £1.3 billion in 2016 (2015: £0.9 billion) and funds under management increase by 29.0% to £4.0 billion at 31 December 2016 (2015: £3.1 billion).
- Underlying operating income in Investment Management of £226.3 million for the year ended 31 December 2016 (2015: £209.0 million) represents an increase of 8.3%. The average FTSE 100 Index was 6659 on our quarterly
- Total underlying operating expenses increased 11.1% to £176.4 million largely reflecting continued investment in strategic initiatives as well as underlying growth in the business.
- Underlying profit before tax (excluding acquisition-related costs, head office relocation costs and charges in relation to client relationships and goodwill) increased 6.4% to £74.9 million from £70.4 million. Underlying earnings per share increased by 4.4% to 122.1p (2015: 117.0p).
- Reflecting acquisition-related costs, head office relocation costs and charges in relation to client relationships and goodwill, profit before tax was £50.1 million for the year ended 31 December 2016, a decrease of 14.5%, compared to £58.6 million in 2015. Basic earnings per share decreased 19.0% to 78.9p (2015: 97.4p).
- The board recommends a final dividend of 36p for 2016 (2015: 34p), making a total of 57p for the year (2015: 55p), an increase of 3.6% on 2015.
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