Underlying profit before tax up 14.3%

This is a preliminary statement of annual results published in accordance with FCA Listing Rule 9.7A.
It covers the year ended 31 December 2015.

Mark Nicholls, Chairman of Rathbone Brothers Plc, said:

“In spite of subdued investment markets, 2015 was a strong year for Rathbones with our total funds under management growing by 7.4% to £29.2 billion (2014: £27.2 billion). During the year we took the opportunity to raise £20.0 million of long term subordinated loan notes to support our future growth and we have continued to pursue acquisition opportunities which will increase shareholder value.

We look forward to completing our recently announced London office move in early 2017, and notwithstanding an uncertain market outlook, have decided to continue progressing our strategic initiatives.”

Highlights:

  • Total funds under management were £29.2 billion at 31 December 2015, up 7.4% from £27.2 billion at 31 December 2014. The FTSE 100 Index decreased by 4.9% and the FTSE WMA Balanced Index decreased by 0.2% over the same period.

  • The total net annual growth rate of funds under management for Investment Management was 5.7% (2014: 19.6%). This comprised £0.7 billion of acquired inflows (2014: £3.2 billion including £2.6 billion in relation to the Jupiter Asset Management and Deutsche Asset & Wealth Management transactions) and £0.7 billion of net organic growth (2014: £0.8 billion). The underlying rate of net organic growth was 3.0% in 2015 (2014: 4.0%).

  • Unit Trusts saw gross sales of £0.9 billion in 2015 (2014: £1.0 billion), and funds under management increase by 24.0% to £3.1 billion at 31 December 2015 (2014: £2.5 billion).

  • Underlying operating income in Investment Management of £209.0 million for the year ended 31 December 2015 (2014: £185.4 million) represents an increase of 12.7%. The average FTSE 100 Index was 6415 on our quarterly billing dates (2014: 6657), a decrease of 3.6%.

  • Underlying operating expenses increased 14.1% to £158.8 million largely reflecting growth of the business, higher performance-based staff costs and salary inflation.

  • Underlying profit before tax (excluding acquisition-related costs, head office relocation costs and charges in relation to client relationships and goodwill) increased 14.3% to £70.4 million from £61.6 million. Underlying earnings per share increased by 14.3% to 117.0p (2014: 102.4p).

  • Profit before tax was £58.6 million for the year ended 31 December 2015, an increase of 28.2%, compared to £45.7 million in 2014. Basic earnings per share increased 28.2% to 97.4p (2014: 76.0p).

  • The board recommends a final dividend of 34p for 2015 (2014: 33p), making a total of 55p for the year (2014: 52p), an increase of 5.8% on 2014.

View the full statement here.

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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