17 August 2022
Paul Stockton, chief executive, said:
“It has been a busy first half for Rathbones as we successfully migrated our largest acquisition to date, underwent a smooth
leadership transition and posted the highest funds under management and administration in our history. Investment
markets look likely to remain volatile in the second half but we retain a cautiously optimistic outlook. The UK wealth
industry continues to present positive opportunities for future growth which we will actively pursue.”
Financial highlights:
- Total funds under management and administration reached a record £49.2 billion at 30 June 2019, up 11.6% from £44.1 billion at 31 December 2018 (30 June 2018: £39.9 billion). The FTSE 100 Index and MSCI WMA Private Investor Balanced Index increased 10.4% and 9.9% respectively over the six-month period to 30 June 2019.
- £42.5 billion in the Investment Management business (30 June 2018: £34.1 billion)
- £6.7 billion in the Unit Trusts business (30 June 2018: £5.8 billion)
- Total growth was £0.5 billion in the first six months of 2019 (30 June 2018: £0.8 billion), representing a net annual growth rate of 2.1% (2018: 3.6%).
- Total growth in the funds managed by Investment Management was £0.1 billion in the first six months of 2019 (30 June 2018: £0.5 billion). Net organic outflows in the first half of the year totalled £0.1 billion (30 June 2018: net inflows of £0.4 billion).
- Net inflows in Unit Trusts were £0.4 billion in the first half of 2019 (2018: £0.3 billion).
- Underlying operating income totalled £172.7 million (2018: 153.2 million).
- Income in Investment Management totalled £155.2 million in the first six months of 2019 (2018: £135.3 million). The average FTSE 100 Index was 7436 on quarterly billing dates in 2019, broadly flat against the 7418 recorded in 2018.
- Income in Unit Trusts totalled £17.5 million in the six months ended 30 June 2019, broadly flat on the £17.9 million reported in the first half of 2018, despite the cessation of ‘risk-free’ managers’ box dealing profits from mid-January 2019.
- Underlying profit before tax totalled £46.6 million in the first six months of 2019 (2018: £48.3 million) and reflected previously flagged non-recurring factors. Underlying earnings per share totalled 71.4p (2018: 76.1p).
- Profit before tax for the six months to 30 June 2019 of £20.0 million (2018: £43.7 million) reflected a number of expected items, primarily in relation to the acquisition of Speirs & Jeffrey. Costs in relation to this totalled £17.8 million in the half year (2018: £0.6m). Basic earnings per share totalled 25.8p (2018: 68.3p).
Declaration of interim dividend
- We are increasing our interim dividend in line with our progressive dividend policy by 4.2% to 25p (2018: 24p). This increase reflects our confidence in our medium term prospects and the strength of our balance sheet. The record date will be 6 September 2019 and the dividend will be paid on 1 October 2019.