Underlying profit before tax up 11.5% to £48.3 million

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

“The first half of 2018 has been a busy one for Rathbones as we progressed a full project agenda and announced the acquisition of
Speirs & Jeffrey whilst maintaining our focus on day-to-day operations. We remain confident in the outlook for the business.”

Highlights:
 

  • Underlying profit before tax* increased 11.5% from £43.3 million to £48.3 million in the first six months of 2018. Underlying profit margin remained strong at 31.5% compared to 30.4% in 2017. Underlying earnings per share increased 11.3% to 76.1p (2017: 68.4p).
  • Profit before tax for the half year increased 64.3% from £26.6 million to £43.7 million. This not only reflects our underlying performance but also a number of significant non-underlying items in 2017, which have not recurred in 2018. Basic earnings per share increased 64.2% to 68.3p (2017: 41.6p).
  • The board recommends a 24.0p interim dividend for 2018 (2017: 22.0p).
  • Total funds under management at 30 June 2018 were £39.9 billion, up 2.0% from £39.1 billion at 31 December 2017. This compared to a decrease of 0.7% in the FTSE 100 Index and a decrease of 0.2% in the MSCI WMA Private Investor 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 2018, representing a net annual growth rate of 2.5% (2017: 4.0%). Net organic growth of £0.4 billion for the first half represents an underlying annualised rate of net organic growth of 2.1% (2017: 2.9%).
  • Underlying operating income in Investment Management of £135.3 million in the first six months of 2018 (2017: £127.4 million) was up 6.2%. The average FTSE 100 Index was 7418 on quarterly billing dates in 2018, compared to 7322 in 2017, an increase of 1.3%.
  • Funds under management in Unit Trusts were £5.8 billion at 30 June 2018 (31 December 2017: £5.3 billion). Net inflows were £299 million in the first half of 2018 (2017: £269 million). Underlying operating income in Unit Trusts was £17.9 million in the six months ended 30 June 2018, an increase of 20.1% from £14.9 million in the first half of 2017.
  • Shareholders equity of £447.8 million at 30 June 2018 increased 23.3% since 31 December 2017 (£363.3 million) and 30.8% since 30 June 2017 (£342.4 million), largely due to a £60 million equity placing in June 2018.

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

Read the full statement here

25 July 2018

For further information contact:

Rathbone Brothers Plc
Tel: 020 7399 0000
email: shelly.patel@rathbones.com

Philip Howell, Chief Executive
Paul Stockton, Group Finance Director & Managing Director Rathbone Investment Management
Shelly Patel, Head of Investor Relations

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

Ed Gascoigne-Pees
Hazel Stevenson