Funds under management reach £30.6 billion

This statement is a half-yearly financial report in accordance with the UK Listing Authority’s Disclosure and Transparency Rules. It covers the six month period ended 30 June 2016.

Philip Howell, Chief Executive of Rathbone Brothers Plc, said:

"Whilst turbulent market conditions and planned expenditure have impacted profitability, we continue to pursue our growth plans. In an eventful first half, our investment teams have worked hard to ensure that client communications are timely and insightful. "Although our outlook is cautious, Rathbones will remain alert to acquisition opportunities that fit with our culture and philosophy."

Highlights:

Total funds under management at 30 June 2016 were £30.6 billion, up 4.8% from £29.2 billion at 31 December 2015. This compared to an increase of 4.2% in the FTSE 100 Index and an increase of 5.4% in the FTSE WMA Balanced Index over the same period.

Total net organic and acquired growth in the funds managed by Investment Management was £0.5 billion in the first six months of 2016, representing a net annual growth rate of 4.2% (2015: 5.1%). Net organic growth of £0.3 billion for the first half represents an underlying annualised rate of net organic growth of 2.5% (2015: 2.8%).

Underlying profit before tax* decreased 5.1% from £37.2 million to £35.3 million in the first six months of 2016. Underlying profit margin remained strong at 29.4% compared to 31.9% in 2015.

Profit before tax was £22.8 million for the six months ended 30 June 2015, down 28.3% compared to £31.8 million in 2015, reflecting the impact of previously announced non-underlying costs in relation to the acquisition of the Vision businesses, and costs incurred to date in respect of our planned London office move to 8 Finsbury Circus. Basic earnings per share decreased 32.9% to 35.7p (2015: 53.2p).

The board recommends a 21.0p interim dividend for 2016 (2015: 21.0p).

Underlying operating income in Investment Management of £108.8 million in the first six months of 2016 (2015: £106.8 million) was up 1.9%, mostly due to growth in funds under management. The average FTSE 100 Index was 6298 on quarterly billing dates in 2016, compared to 6677 in 2015, a decrease of 5.7%.

Net interest income of £5.7 million in the first six months of 2016 has increased 3.6% from £5.5 million in 2015, largely due to an increase in average liquidity to £1.7 billion for the six months to 30 June 2016 (2015: £1.6 billion).

Underlying operating expenses of £84.9 million for the six months ended 30 June 2016 were up 6.7% from £79.6 million in the first half of 2015, largely reflecting higher fixed staff costs and higher direct costs.

Funds under management in Unit Trusts were £3.3 billion at 30 June 2016 (31 December 2015: £3.1 billion). Net inflows were £259 million in the first half of 2016 (2015: £107 million). Underlying operating income in Unit Trusts was £11.4 million in the six months ended 30 June 2016, an increase of 14.0% from £10.0 million in the first half of 2015.

Shareholders equity of £279.7 million at 30 June 2016 fell 6.8% from 31 December 2015 (£300.2 million), largely as a result of the value of retirement benefit obligations which increased by £27.5 million from £4.5 million to £32.0 million during the period.

* Excluding charges in relation to client relationships and goodwill, acquisition-related costs and London head office relocation costs.

Issued on 27 July 2016

Read the full statement

For further information contact:
Rathbone Brothers Plc

Tel: 020 7399 0000
Email: shelly.chadda@rathbones.com
Philip Howell, Chief Executive
Paul Stockton, Finance Director
Shelly Chadda, Investor Relations Manager

Camarco

Tel: 020 3757 4984
Email: ed.gascoigne-pees@camarco.co.uk
Ed Gascoigne-Pees

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