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 2013.

Mark Nicholls, Chairman of Rathbone Brothers Plc, said:

“2013 was a positive year for investment markets generally, benefitting both Rathbones and our clients. This positive backdrop, combined with better levels of new business, meant that our total funds under management grew by 22.2% over the year to £22.0 billion. It is particularly pleasing that the growth in our business was broad-based.

“Philip Howell will become chief executive on 1 March 2014 in succession to Andy Pomfret who is retiring. Rathbones has flourished under Andy’s strong leadership and it is a tribute to him that he not only brought in Philip as a potential successor but has also ensured a smooth handover of responsibilities. I have enjoyed working with Andy immensely and wish him well in his future plural career.

“We are well placed to take advantage of future growth opportunities in our sector and continue to look to the future with optimism. I very much look forward to working with our new chief executive, Philip Howell, and the board in the coming years to develop and grow the business further.”

Highlights:

  • Total funds under management were £22.0 billion at 31 December 2013, up 22.2% from £18.0 billion at 31 December 2012. In comparison, over the same period the FTSE 100 Index and FTSE WMA (formerly APCIMS) Balanced Index increased by 14.4% and 10.8% respectively.

  • The total net annual growth rate of funds under management for Rathbone Investment Management was 9.0% (2012: 6.2%). This comprised £0.6 billion of acquired inflows (2012: £0.5 billion), including £0.4 billion following the completion of the acquisition of Taylor Young Investment Management’s private client base, and £0.9 billion of net organic growth (2012: £0.4 billion). The underlying rate of net organic growth increased to 5.4% in 2013 (2012: 3.0%).

  • Underlying profit before tax (excluding amortisation of client relationship intangible assets and, in 2012, head office relocation costs) increased 12.7% to £50.5 million from £44.8 million. Basic underlying earnings per share increased by 12.0% to 86.7p (2012: 77.4p).

  • Profit before tax was £44.2 million for the year ended 31 December 2013, an increase of 14.8%, compared to £38.5 million in 2012. Basic earnings per share increased by 14.4% to 76.1p (2012: 66.5p).

  • The board recommends a 31p final dividend for 2013 (2012: 30p), making a total of 49p for the year (2012: 47p), an increase of 4.3% on 2012.

  • Net operating income in Rathbone Investment Management of £165.3 million for the year ended 31 December 2013 (2012: £146.7 million) represents an increase of 12.7%. The average FTSE 100 Index was 6419 on our quarterly billing dates (2012: 5734), an increase of 11.9%.

  • Net interest income in Rathbone Investment Management was £8.6 million compared to £9.9 million in 2012.

  • Underlying operating expenses increased 13.6% to £125.9 million largely reflecting inflation, growth of the business, higher performance-based staff costs and legal expenses.

  • Rathbone Unit Trust Management saw positive net monthly sales throughout 2013 helping its funds under management to increase by 38.5% to £1.8 billion at 31 December 2013 (2012: £1.3 billion). Profit before tax in Rathbone Unit Trust Management was £1.4 million for the year ended 31 December 2013 (2012: £0.6 million).

Issued on 20 February 2014

For further information contact:

Rathbone Brothers Plc
Tel: 020 7399 0000
email: marketing@rathbones.com  
Mark Nicholls, Chairman
Andy Pomfret, Chief Executive
Philip Howell, Deputy Chief Executive
Paul Stockton, Finance Director

Quill PR
Tel: 020 7466 5054
email: hugo@quillpr.com 
Hugo Mortimer-Harvey

Rathbone Brothers Plc

Rathbone Brothers Plc is a leading independent provider of high-quality, personalised investment and wealth management services for private clients, charities and trustees. This includes discretionary investment management, unit trusts, tax planning, trust and company management, pension advice and banking services.
Rathbones has over 880 staff in 13 UK locations and Jersey, and has its head office at 1 Curzon Street, London.

www.rathbones.com