Released: 04 Sep 2003
Rathbone Brothers Plc, the group that specialises in discretionary investment management for private clients, announces interim results for the six months to 30th June 2003.
Highlights:
- Funds under management rise by 11% to £5.9bn over the six months compared with an increase in the FTSE 100 Index of only 2.3%.
- The Unit Trust management company increases funds under management by 46% to £322 million in the same period.
- Pre-tax profits before exceptional items and before goodwill amortisation are £9.4m compared with £11.4m in the first half of 2002 and £7.0m in the second half. Pre-tax profits before exceptional items and after goodwill amortisation are £6.6m compared with £10.1m for the first half of 2002.
- Earnings per share, before goodwill amortisation, decline to 18.19p from 22.39p for the same period in 2002.
- Post goodwill earnings per share decline to 11.31p from 18.96p for the same period in 2002, but up from the 4.94p in the second half of 2002.
- The interim dividend of 10p per share is maintained.
- Markets in the period were very volatile – the FTSE 100 Index rose by 2.3% overall but at its worst it fell 16% and subsequently rose by 28% from its low point.
Commenting on the interim results, Mark Powell, Chairman of Rathbone Brothers Plc, said:
“This was, by any standards, an extremely difficult period in which to operate a business whose main focus is discretionary investment management for wealthy private investors. During the first half of 2003, the UK equity market as measured by the FTSE 100, was very volatile - it fell by 16%, subsequently rose by 28% from its low point, yet at the end of June finished only 2.3% above the end of December level. In spite of this unusual volatility, the Group was profitable in every month of the first half of the year.”
“Against these very demanding market conditions, it is pleasing to report that funds under management have risen by over 11% from £5.3bn at the end of 2002 to £5.9bn at the end of June. Our continued policy of acquisition has led to an increase in our goodwill charge and the resulting fall in post goodwill EPS”.
“Looking forward, our view is that, whilst equities still offer good value, further progress in markets is likely to be much less dramatic. The more settled market conditions that we anticipate should however, provide a favourable climate in which to continue growing our business organically and to attract experienced investment and trust professionals to join Rathbones.”
For further information, please contact:
Rathbone Brothers Plc (020 7399 0000)
Mark Powell, Chairman
Andy Pomfret, Finance Director
Luther Pendragon (020 7618 9100)
Tim Trotter (Glenfern)
Jon Bennett
Andrew Sharkey
View the full press release in PDF format.