Rathbone Brothers raises interim dividend amid higher profit and funds

(Alliance News) - Rathbone Brothers PLC on Wednesday reported a rise in funds under management in ...

Alliance News 28 July, 2021 | 9:50AM
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(Alliance News) - Rathbone Brothers PLC on Wednesday reported a rise in funds under management in the first half of 2021, driven by a positive market and investment performance, as well as new business.

As at June 30, the London-based wealth manager's total funds under management and administration come up to GBP59.18 billion, a 20% rise from GBP49.36 billion on the same date a year before, and up 8.2% from GBP54.7 billion at the end of 2020. Over the same six-month period, the MSCI PIMFA Private Investor Balanced index rose 6.0%, while the FTSE 100 index added 8.9%.

The rise in managed and administrated funds resulted from growth in all of Rathbone's businesses, with Investment Management's FUMA rising 16% year-on-year to GBP47.80 billion, helped by a GBP2.41 billion contribution from market effects and a stronger investment performance.

Meanwhile, Rathbone Funds posted a 42% rise in FUMA to GBP11.39 billion a year prior, as a result of a 31% rise in inflows to GBP2.22 billion.

For the six months period, Rathbone Brothers reported a pretax profit of GBP48.8 million, up 79% from GBP27.3 million a year before, as a result of continued business growth and reduced costs related to the acquisition of Speirs & Jeffrey in July 2019.

Operating income rose 19% year-on-year to GBP213.5 million from GBP179.0 million on higher managed funds and improved market conditions.

Rathbone Brothers declared an interim dividend of 27 pence per share, up 8.2% from 25p the same period a year prior.

Looking ahead, Rathbone said that change activity within its business is high and is expected to remain so well into 2022, as it looks to improve its services. In addition, the acquisition of Sanderson House is on-track to be completed in the third quarter of 2021.

"Following a strong set of year to date financial results we enter the second half of 2021 in a robust position. The acquisition of Saunderson House, announced on 23 June 2021, accelerates our financial advice strategy, and presents an exciting opportunity to explore wider UK wealth segments. The deal continues to be on track to complete during the third quarter of 2021, adding GBP4.7 billion of funds under management and administration," said Chief Executive Paul Stockton.

"We continue to focus on delivering high-quality services to our clients and developing our services. The UK wealth market is changing quickly, and Rathbones remains well positioned to take advantage of future growth opportunities," Stockton added.

Shares in Rathbone Brothers were up 3.1% at 1,944.00 pence on Wednesday in London.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Rathbone Brothers PLC 1,562.00 GBX -0.13 -

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