This statement is a half-yearly financial report in accordance with the UK Listing Authority's Disclosure and Transparency Rules. It covers the six month period ended 30 June 2012.
Andy Pomfret, Chief Executive of Rathbone Brothers Plc, said:
"Our first half performance has been resilient despite volatile investment markets as we have seen the full benefit of recent acquisitions and continuing net organic growth. Organic and acquired growth in our investment management business was an annualised 6.7% in the six months to 30 June 2012 (2011: 8.4%).
"In spite of challenging investment conditions, we are continuing to invest in people and systems to improve both our efficiency and respond to regulatory change. Whilst investment markets are expected to remain uncertain, Rathbones is as well placed as ever to develop future growth."
- Total funds under management at 30 June 2012 were £16.65 billion, up 5.0% from £15.85 billion at 31 December 2011. In contrast, the FTSE 100 Index was unchanged over the same period, whilst the FTSE APCIMS Balanced Index had increased by 1.6%.
- Total net organic and acquired growth in the funds managed by Rathbone Investment Management was £497 million in the first six months of 2012, representing a net annual growth rate of 6.7% (2011: 8.4%). Net organic growth of £270 million for the first half represents an underlying annualised rate of net organic growth of 3.7% (2011: 6.9%).
- Profit before tax was £19.9 million for the six months ended 30 June 2012, down 3.4% compared to £20.6 million in 2011. Underlying profit before tax (excluding amortisation of client relationship intangible assets and head office relocation costs) decreased 4.1% from £24.2 million to £23.2 million.
- Underlying operating income in Investment Management of £73.4 million in the first six months of 2012 (2011: £69.5 million) was up 5.6%. The average FTSE 100 Index was 5647 on our quarterly billing dates in 2012, compared to 5976 in 2011, a decrease of 5.5%.
- Net interest income of £5.1 million in the first six months of 2012 is largely comparable to the £5.2 million earned in the same period in 2011 as lower returns on treasury assets offset higher levels of average client deposits.
- Funds under management in Rathbone Unit Trust Management were £1,147 million at 30 June 2012 (31 December 2011: £1,085 million) after seven consecutive quarters of net inflows. Net inflows were £32 million in the first half of 2012 (2011: £38 million). Underlying operating income in Rathbone Unit Trust Management of £4.4 million in the six months ended 30 June 2012 increased 7.3% from £4.1 million in the first half of 2011.
- Underlying operating expenses of £54.5 million for the six months ended 30 June 2012 were up 10.5% on £49.3 million in the first half of 2011 largely as a result of higher client facing headcount and investment in marketing, research and compliance staff. Pension costs increased by £1.0 million compared to 2011 as a result of lower bond yields, and property costs increased as a result of our recent London head office move and additional space in Liverpool.
Rathbone Brothers Plc
Rathbone Brothers Plc is a leading provider of high-quality, personalised investment and wealth management services for private clients, charities and trustees. This includes discretionary investment management, unit trusts, tax planning, trust and company management, pension advice and banking services.
Rathbones has over 780 staff in 11 UK locations and Jersey, and has its headquarters in Curzon Street, London.