Released: 02 Mar 2005
Rathbones announces strong growth in profits and funds under management
Rathbone Brothers Plc, a leading provider of discretionary fund management and wealth management services for private clients and trustees, announces its preliminary results for the 12 months to 31st December 2004.
Mark Powell, Chairman of Rathbone Brothers Plc, commented: “Profits before tax (before exceptional gains and goodwill amortisation) increased by 32.0% over 2003 to £26.0 million and earnings per share (before goodwill amortisation) by 22.8% to 46.79p. Total funds under management rose by 13.2% to £7.7 billion.
“2004 was a year of real progress for Rathbones, against a background of a much calmer stock market than had been the case in 2003. We continue to attract new clients and new funds in our core businesses, and to build our profile and our relationships with intermediaries – an increasingly important source of new business.
“Rathbone Unit Trust Management continues to flourish with funds under management reaching £916m as at the end of February this year. We have welcomed Peter Pearson Lund, the chief executive of our unit trust division, to the board and he joins our other new board appointment – Sue Desborough – who became finance director in October 2004 when Andy Pomfret was appointed to the chief executive role.
“2005 has so far seen a further welcome improvement in world equity markets despite continuing currency uncertainties. Provided that markets do not deteriorate, we can look forward to further growth in all parts of our business. We are confident that we have the professional skills, management and operational capability to achieve our medium term objective of becoming the leading independent private client wealth management firm in the UK.”
Highlights:
- Operating income increased by 16.4% to £95.2m (2003: £81.8m).
- Operating profit before goodwill amortisation of £26.0m, an increase of 32.0% (2003: £19.7m).
- Operating profit after goodwill amortisation was £20.1m, an increase of 41.5% (2003: £14.2m).
- Total funds under management increased by 13.2% to £7.7 billion compared with an increase in the FTSE 100 Index of 7.5% over the same period.
- Funds under management in Rathbone Unit Trusts increased by 72.2% over the period to £818m as at 31 Dec 2004.
- Operating profit before goodwill amortisation in the Trust Division was £3.0m compared to £2.2m in 2003.
- Earnings per share before goodwill amortisation rose by 22.8% to 46.79p (2003: 38.11p). Earnings per share after goodwill amortisation rose by 33.9% to 32.23p (2003: 24.07p).
- Recommended final dividend is increased to 17.0p, making a total of 27.5p (2003:26p) for the year - an increase of 5.8%.
For further information contact:
| Rathbone Brothers Plc | 020 7399 0000 (Switchboard) |
| Mark Powell, Chairman | |
| Andy Pomfret, Chief Executive | |
| Emily Morris, Marketing Director | |
 | |
| Financial Dynamics | |
| Geoffrey Pelham-Lane | 020 7269 7194 |
| Andrew Waterworth | 020 7269 7127 |
| Ed Gascoigne-Pees | 020 7269 7132 |
View the full press release in PDF format.