RNS Number:3723P
Rathbone Brothers PLC
04 September 2003
4th September 2003
Rathbone Brothers Plc
Interim results for the six months to 30th June 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
Rathbone Brothers Plc
Interim results for the six months ended 30th June 2003
Chairman's Statement
My first statement as Chairman is for the six months to 30th June 2003. 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. There was nervousness in the run up to military action in
Iraq and the consequent uncertainties when the invasion took place. This,
combined with anxieties connected with somewhat conflicting economic indicators
and the SARS epidemic, produced very volatile markets.
In the event, profits before tax (before exceptional items and goodwill
amortisation) for the six months to 30th June 2003 were #9.4 million, compared
with #11.4 million in the first half of 2002 and #7.0 million in the second
half.
Earnings per share before goodwill amortisation were 18.19p compared to 22.39p
for the same period in 2002. The interim dividend of 10p per share is
maintained. Our continued policy of acquisition has led to an increase in our
goodwill charge and the resulting fall in post goodwill EPS from 18.96p to
11.31p.
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, compared with the 2.3% increase in the FTSE 100
Index, as a result of both organic growth and new business. Our Unit Trust
management company continues to perform very well and has increased its funds
under management by 46% to #322 million. In particular, the Rathbone Income Fund
has attracted considerable support reflecting its excellent long term record.
Our Trust division has suffered from the twin pressures of depressed markets and
low levels of corporate activity. Action has been taken to reduce overheads in
this area and these are anticipated to produce annual savings of approximately
#1 million from 2004, although there has been a one-off cost in this first half
of around #140,000. Despite the recent difficult trading environment, we believe
that our investment management and trust services together continue to offer
wealthy private investors a competitive level of service and expertise.
The sharp rally in the market since March reflects an increasing confidence in
the outlook for corporate earnings. 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.
Mark Powell
Chairman
3rd September 2003
----------------------------- --------- -------- ----------
Consolidated profit and loss account
for the six months ended 30th June
2003
----------------------------- --------- -------- ----------
Six months Six months Year
ended ended ended
30th June 30th June 31st December
2003 2002 2002
Unaudited Unaudited Audited
#'000 #'000 #'000
----------------------------- --------- -------- ----------
Gross operating income (Note 6) 49,280 50,694 95,969
----------------------------- --------- -------- ----------
Operating income - continuing 40,047 42,071 79,825
operations
Operating costs (33,415) (31,921) (65,277)
----------------------------- --------- -------- ----------
Operating profit 6,632 10,150 14,548
- operating profit before goodwill 9,383 11,420 18,364
amortisation
- goodwill amortisation (2,751) (1,270) (3,816)
Gain on sale of investment
securities
- continuing operations 702 - 777
----------------------------- --------- -------- ----------
Profit on ordinary activities
before tax - continuing operations 7,334 10,150 15,325
Tax on profit on ordinary activities (2,874) (3,126) (6,211)
----------------------------- --------- -------- ----------
Profit on ordinary activities after 4,460 7,024 9,114
tax
Dividends (3,974) (4,149) (10,451)
----------------------------- --------- -------- ----------
Transferred to reserves 486 2,875 (1,337)
----------------------------- --------- -------- ----------
Earnings per ordinary share
Basic after goodwill amortisation 11.31p 18.96p 23.90p
Basic before goodwill amortisation 18.19p 22.39p 33.91p
Diluted after goodwill amortisation 11.16p 18.89p 23.83p
Diluted before goodwill amortisation 17.96p 22.31p 33.81p
----------------------------- --------- -------- ----------
Consolidated balance sheet
as at 30th June 2003
----------------------------- --------- --------- ----------
31st
30th June 30th June December
2003 2002 2002
Unaudited Unaudited Audited
#'000 #'000 #'000
----------------------------- --------- --------- ----------
Assets
Cash and balances at central banks 6,126 3,831 19,019
Settlement balances 19,151 16,802 6,837
Loans and advances to banks 34,266 32,289 33,025
Loans and advances to customers 34,677 35,112 36,828
Debt securities 390,000 402,693 363,426
Equity shares 35 70 70
Intangible fixed assets 57,469 39,239 56,232
Tangible fixed assets 6,819 8,013 7,454
Other assets 3,941 5,466 3,651
Prepayments and accrued income 15,377 14,880 16,132
----------------------------- --------- --------- ----------
Total assets 567,861 558,395 542,674
----------------------------- --------- --------- ----------
Liabilities
Deposits by banks 6,318 981 62
Settlement balances 14,710 15,895 5,865
Customer accounts 421,501 426,199 408,039
Debt securities in issue 1,169 1,034 5,768
Other liabilities 8,360 9,243 10,899
Accruals and deferred income 7,588 6,630 7,671
Provision for liabilities and charges 5,179 5,192 3,940
Called up share capital 1,982 1,896 1,969
Shares to be issued including premium 2,823 - 1,927
Share premium account 10,307 8,243 9,639
Other reserves 46,367 37,387 45,674
Profit and loss account 41,557 45,695 41,221
----------------------------- --------- --------- ----------
Equity shareholders' funds 103,036 93,221 100,430
----------------------------- --------- --------- ----------
----------------------------- --------- --------- ----------
Total liabilities 567,861 558,395 542,674
----------------------------- --------- --------- ----------
Memorandum items
Undrawn commitments to lend 5,528 7,088 4,503
Guarantees and pledged assets 808 996 779
----------------------------- --------- --------- ----------
6,336 8,084 5,282
----------------------------- --------- --------- ----------
Approved by the Board on 3rd September 2003.
Consolidated cash flow statement
for the six months ended 30th June 2003
----------------------------- --------- --------- ----------
Six months Six months Year
ended ended ended
30th June 30th June 31st December
2003 2002 2002
Unaudited Unaudited Audited
#'000 #'000 #'000
----------------------------- --------- --------- ----------
Net cash inflow from operating 30,790 20,969 14,837
activities --------- --------- ----------
-----------------------------
Taxation
- UK corporation tax (1,779) (1,836) (5,279)
- Overseas tax (782) (792) (1,425)
----------------------------- --------- --------- ----------
Net cash outflow for taxation (2,561) (2,628) (6,704)
----------------------------- --------- --------- ----------
Capital expenditure and financial
investments
- Purchase of investment securities (1,122,067) (922,277) (1,733,062)
- Proceeds from sale and maturities
of investment securities 1,096,229 901,107 1,751,939
- Purchase of tangible fixed assets (877) (871) (1,866)
- Sale of tangible fixed assets 8 119 179
----------------------------- --------- --------- ----------
Net cash (outflow)/inflow for
capital expenditure and financial
investments (26,707) (21,922) 17,190
----------------------------- --------- --------- ----------
Acquisitions and disposals
- Acquisitions of subsidiaries/ (1,523) (238) (4,754)
businesses
- Net cash acquired with subsidiary 44 141 1,186
undertakings --------- --------- ----------
-----------------------------
Net cash outflow for acquisitions and (1,479) (97) (3,568)
disposals --------- --------- ----------
-----------------------------
Equity dividends paid (6,311) (6,042) (9,953)
----------------------------- --------- --------- ----------
Net cash (outflow)/inflow before (6,268) (9,720) 11,802
financing --------- --------- ----------
-----------------------------
Financing
- Issue of shares 383 659 260
- Repayment of debt securities (4,599) - -
- Issue expenses of debt securities - - (29)
----------------------------- --------- --------- ----------
Net cash (outflow)/inflow from (4,216) 659 231
financing --------- --------- ----------
-----------------------------
(Decrease)/increase in cash in the (10,484) (9,061) 12,033
period --------- --------- ----------
-----------------------------
Consolidated statement of total recognised gains and losses
for the six months ended 30th June 2003
----------------------------- -------- --------- ----------
Six months Six months Year
ended ended ended
30th June 30th June 31st December
2003 2002 2002
Unaudited Unaudited Audited
#'000 #'000 #'000
----------------------------- -------- --------- ----------
Profit for the period attributable
to shareholders 4,460 7,024 9,114
Currency adjustments (59) 3 (107)
----------------------------- -------- --------- ----------
Total recognised gains and losses for 4,401 7,027 9,007
the period
Prior year adjustment - 2,018 2,018
----------------------------- -------- --------- ----------
Total gains and losses recognised
since the last report 4,401 9,045 11,025
----------------------------- -------- --------- ----------
Reconciliation of movements in shareholders' funds
for the six months ended 30th June 2003
------------------------------ -------- --------- ----------
Six months Six months Year
ended ended ended
30th June 30th June 31st December
2003 2002 2002
Unaudited Unaudited Audited
#'000 #'000 #'000
------------------------------ -------- --------- ----------
Profit for the period attributable
to shareholders 4,460 7,024 9,114
Dividends (3,974) (4,149) (10,451)
------------------------------ -------- --------- ----------
Result for the period 486 2,875 (1,337)
Currency adjustments (59) 3 (107)
Shares issued or to be issued 13 82 155
Premium on shares issued or to be 2,257 13,011 24,621
issued
Movement in relation to the Share (91) (197) (349)
Incentive Plan
------------------------------ -------- --------- ----------
Net addition to shareholders' funds 2,606 15,774 22,983
Opening shareholders' funds 100,430 77,447 77,447
------------------------------ -------- --------- ----------
Closing shareholders' funds 103,036 93,221 100,430
------------------------------ -------- --------- ----------
Notes to the accounts
for the six months ended 30th June 2003
1 Basis of preparation
The unaudited interim financial information, which has been approved by the
Board of Directors, has been prepared on the basis of accounting policies set
out in the Group's accounts for the year ended 31st December 2002.
The Group's accounts for the year ended 31st December 2002 have been reported on
by the auditors and delivered to the Registrar of Companies. The report of the
auditors was unqualified and did not contain a statement under section 237(2) or
(3) of the Companies Act 1985.
2 Basis of consolidation
The consolidated accounts include the accounts of the Company and its subsidiary
and quasi-subsidiary undertakings made up to 30th June 2003.
Unless otherwise stated, the acquisition method of accounting has been adopted.
Under this method, the results of subsidiary undertakings acquired or disposed
of in the period are included in the consolidated profit and loss account from
the date of acquisition or up to the date of disposal.
3 Goodwill
Purchased goodwill (representing the difference between the fair value of the
consideration given and any associated costs and the fair value of the separable
net assets acquired) arising on consolidation in respect of acquisitions before
1st January 1998, when Financial Reporting Standard 10 'Goodwill and intangible
assets' was adopted, was written off to reserves in the year of acquisition.
When a subsequent disposal occurs, any related goodwill previously written off
to reserves is written back through the profit and loss account as part of the
profit or loss on disposal. Purchased goodwill arising on consolidation in
respect of acquisitions since 1st January 1998 is capitalised.
Goodwill is amortised to nil by equal instalments over its estimated useful life
as follows:
- investment management businesses 8-10 years
- trust businesses 20 years
On the subsequent disposal or termination of a business acquired since 1st
January 1998, the unamortised amount of any related goodwill is taken into
account in calculating the profit or loss on disposal or termination.
4 Investments
The Group has a holding of 1,600,000 shares in London Stock Exchange plc which
is included in the balance sheet at a cost of #2. The market value of the
holding at 30th June 2003 was #5,440,000.
5 Acquisitions
---------------------------- -------- --------- -------- ------
Galsworthy
& Stones (a) Others (b) Others (c) Total
#'000 #'000 #'000 #'000
---------------------------- -------- --------- -------- ------
Consideration paid:
Acquisition costs - 58 2 60
Issue of new ordinary shares of
5p in Rathbone Brothers Plc - - 699 699
Cash - 1,462 - 1,462
Deferred contingent 896 913 - 1,809
consideration
---------------------------- -------- --------- -------- ------
Total consideration 896 2,433 701 4,030
---------------------------- -------- --------- -------- ------
Net assets acquired:
Loans and advances to banks - - 44 44
Loans and advances to - - 26 26
customers
---------------------------- -------- --------- -------- ------
Total assets - - 70 70
Liabilities - - (28) (28)
---------------------------- -------- --------- -------- ------
Net assets on acquisition - - 42 42
date
Total fair value adjustments - - - -
---------------------------- -------- --------- -------- ------
Adjusted net assets acquired - - 42 42
---------------------------- -------- --------- -------- ------
Goodwill arising on 896 2,433 659 3,988
acquisition
---------------------------- -------- --------- -------- ------
(a) The deferred contingent consideration payable in respect of last year's
acquisition of Galsworthy & Stones, estimated at #1,777,000 as at 31st December
2002, has been revised to #2,673,000 which has resulted in an increase to
goodwill on consolidation and shares to be issued of #896,000.
(b) In January 2003, Rathbone Investment Management Limited signed agreements to
transfer investment management clients from two organisations. For both
transactions, the consideration payable is contingent on the number of clients
who agree to transfer on the basis of the standard terms and conditions of
Rathbone Investment Management Limited.
In total, there were initial consideration payments of cash of #1,462,000 and
acquisition costs of #58,000 incurred. Deferred contingent consideration is
payable in cash in the second half of the year to both vendors and an estimate
of the value of the cash consideration has been included in goodwill and
provisions for liabilities and charges. On 1st July 2003, a deferred
consideration payment of #340,000 was made to one of the vendors.
(c) In June 2003, the Group acquired a number of UK based companies engaged in
the introduction of discretionary investment management clients. The total
consideration of #701,000 (including acquisition costs) was satisfied by the
issue of 114,848 new ordinary shares of 5p each at 608.7p.
6 Operating income
----------------------------- --------- -------- ----------
Six months Six months Year
ended ended ended
30th June 30th June 31st December
2003 2002 2002
#'000 #'000 #'000
----------------------------- --------- -------- ----------
Gross operating income
- Interest receivable 9,359 10,288 20,784
- Dividend income 9 11 90
- Fees and commissions receivable 39,265 39,777 73,880
- Other operating income 647 618 1,215
----------------------------- --------- -------- ----------
49,280 50,694 95,969
Interest payable (4,235) (4,382) (9,081)
Fees and commissions payable (4,998) (4,241) (7,063)
----------------------------- --------- -------- ----------
Operating income 40,047 42,071 79,825
----------------------------- --------- -------- ----------
All amounts derive from continuing operations.
7 Gain on sale of investment securities
In April 2003, 35,000 shares in Consort Security Systems Limited were sold by
Neilson Cobbold Holdings plc. The shares were acquired for #35,000 and the
profit on sale amounted to #157,000. The amount of tax attributable to the
profit on sale included in the overall tax charge is #47,000.
In June 2003, 150,000 shares in London Stock Exchange plc were sold by Rathbone
Neilson Cobbold Limited. The shares were acquired at no cost and the sale
proceeds and profit on sale amounted to #545,000. The amount of tax attributable
to the profit on sale included in the overall tax charge is #164,000.
8 Taxation
The tax charge for the period is higher than the standard rate of corporation
tax in the UK of 30% principally due to disallowable amortisation of goodwill on
consolidation partially offset by lower rates of tax on unremitted overseas
earnings.
9 Earnings per share
The calculation of basic earnings per share is based on profit after taxation
before dividends for each period and the weighted average number of ordinary
shares in issue during the relevant period.
The directors believe that the additional EPS figures provided, which exclude
goodwill amortisation, assist the users of these interim accounts in
understanding the performance of the Group.
Diluted earnings per share is the basic earnings per share, adjusted for
employee share options remaining capable of exercise, shares issuable under the
Share Incentive Plan and contingently issuable shares related to deferred
consideration payments, weighted for the relevant periods as set out below.
----------------------------- --------- --------- ---------
Six months Six months Year
ended ended ended
30th June 30th June 31st December
2003 2002 2002
----------------------------- --------- --------- ---------
Weighted average number of ordinary
shares in issue
during the period - basic 39,432,386 37,050,531 38,139,407
Effect of ordinary share options - 108,034 -
Effect of dilutive ordinary shares
issuable under the
Share Incentive Plan 26,240 21,435 16,183
Effect of contingently issuable 493,363 - 90,225
ordinary shares
----------------------------- --------- --------- ---------
Weighted average number of ordinary
shares in issue during the period -
diluted 39,951,989 37,180,000 38,245,815
----------------------------- --------- --------- ---------
10 Dividends per share
----------------------------- --------- ---------- ----------
Six months Six months Year
ended ended ended
30th June 30th June 31st December
2003 2002 2002
#'000 #'000 #'000
----------------------------- --------- ---------- ----------
Interim dividend of 10p per share on
39,649,942 shares
(2002: 10p per share on 39,119,091 3,965 3,912 3,912
shares)
Final dividend of 16p per share on - - 6,302
39,388,073 shares
Adjustment in respect of previous 9 237 237
periods
----------------------------- --------- ---------- ----------
3,974 4,149 10,451
----------------------------- --------- ---------- ----------
The interim dividend declared of 10p per share is payable on 15th October 2003
to shareholders on the register at the close of business on 19th September 2003.
11 Cash flow statement
(i) Reconciliation of operating profit to net cash inflow from operating
activities
----------------------------- --------- -------- ---------
Six months Six months Year
ended ended ended
30th June 30th June 31st December
2003 2002 2002
#'000 #'000 #'000
----------------------------- --------- -------- ---------
Operating profit 6,632 10,150 14,548
Loss/(profit) on disposal of tangible 2 (48) 11
fixed assets
Depreciation and amortisation 4,251 3,018 7,220
UITF Abstract 17 Share Incentive Plan 201 118 283
charge
Provision for bad and doubtful debts 260 384 341
Decrease/(increase) in accrued income 771 357 (801)
and prepayments
Increase/(decrease) in provision for
liabilities and charges 323 (831) (1,067)
(Decrease)/increase in accruals and (117) 860 1,841
deferred income
----------------------------- --------- -------- ---------
Net cash inflow from trading 12,323 14,008 22,376
activities
Net decrease/(increase) in loans and
advances to banks and customers 4,022 (3,512) 1,057
Net (increase)/decrease in settlement (12,313) (8,173) 1,790
debtor balances
Net increase/(decrease) in settlement 8,845 8,508 (1,522)
creditor balances
Net increase/(decrease) in deposits by 18,716 9,822 (9,266)
banks and customer accounts
Net (decrease)/increase in other (202) 1,975 (41)
liabilities
Net (increase)/decrease in other (601) (1,659) 443
assets
----------------------------- --------- -------- ---------
Net cash inflow from operating 30,790 20,969 14,837
activities
----------------------------- --------- -------- ---------
(ii) Analysis of the balances of cash as shown in the balance sheet
-------------------- -------- ------- --------- --------- -------
At 1st At 30th
January Cash Non-cash Exchange June
2003 flow changes movements 2003
#'000 #'000 #'000 #'000 #'000
-------------------- -------- ------- --------- --------- -------
Cash and balances at 19,019 (12,885) - (8) 6,126
central banks
Loans and advances to
other banks repayable on
demand 28,276 2,401 - (26) 30,651
-------------------- -------- ------- --------- --------- -------
Total 47,295 (10,484) - (34) 36,777
-------------------- -------- ------- --------- --------- -------
(iii) Analysis of changes in financing
---------------------- --------- -------- --------
Shares
Share Share to be
capital premium issued
#'000 #'000 #'000
---------------------- --------- -------- --------
Balance at 1st January 2003 1,969 9,639 1,927
Cash inflow 7 668 -
Other movement 6 - 896
---------------------- --------- -------- --------
Balance at 30th June 2003 1,982 10,307 2,823
---------------------- --------- -------- --------
(iv) Acquisition of subsidiary undertakings and businesses
The effect of the acquisitions made during the period is set out in Note 5.
The companies/businesses acquired did not make a material contribution to the
Group's net operating cash flows or capital expenditure in the period.
(v) Major non-cash transactions
The consideration for the companies/businesses acquired included shares - see
Note 5.
(vi) Disposal of investment securities
Net sale proceeds of #702,000 were received in relation to the sale of
investment securities - see Note 7.
12 Segmental information
(a) Segmental information as required by Statement of Standard Accounting
Practice 25 'Segmental reporting':
----------------------- ----------------- ----------------
Gross operating income Profit before taxation
after goodwill amortisation
Six Six Year Six Six Year
months months ended months months ended
ended ended 31st ended ended 31st
30th June 30th June December 30th June 30th June December
2003 2002 2002 2003 2002 2002
#'000 #'000 #'000 #'000 #'000 #'000
----------------------- ------- ------ ------- ------ ------ --------
By class of business:
Investment management
and banking 38,617 40,511 75,238 6,810 9,010 13,193
Trust services 10,663 10,183 20,731 524 1,140 2,132
----------------------- ------- ------ ------- ------ ------ --------
49,280 50,694 95,969 7,334 10,150 15,325
----------------------- ------- ------ ------- ------ ------ --------
By geographical segment:
United Kingdom 40,386 43,398 79,737 6,105 8,874 12,141
Jersey, Switzerland and
other European
countries 8,055 6,448 14,208 902 897 2,031
The Americas 839 848 2,024 327 379 1,153
----------------------- -------- ------ ------- ------ ------ --------
49,280 50,694 95,969 7,334 10,150 15,325
----------------------- -------- ------ ------- ------ ------ --------
Total assets Net assets
Six Six Year Six Six Year
months months ended months months ended
ended ended 31st ended ended 31st
30th June 30th June December 30th June 30th June December
2003 2002 2002 2003 2002 2002
#'000 #'000 #'000 #'000 #'000 #'000
----------------------- ------- ------- ------- ------- ------ -------
By class of business:
Investment management
and banking 507,010 502,105 480,112 62,686 64,420 58,255
Trust services 60,851 56,290 62,562 40,350 28,801 42,175
----------------------- ------- ------- ------- ------- ------ -------
567,861 558,395 542,674 103,036 93,221 100,430
----------------------- ------- ------- ------- ------- ------ -------
----------------------- ------- ------- ------- ------- ------ -------
By geographical
segment:
United Kingdom 509,953 508,072 484,005 67,077 61,795 63,961
Jersey, Switzerland and
other European
countries 53,206 44,784 53,814 33,440 28,469 34,217
The Americas 4,702 5,539 4,855 2,519 2,957 2,252
----------------------- ------- ------- ------- ------- ------ -------
567,861 558,395 542,674 103,036 93,221 100,430
----------------------- ------- ------- ------- ------- ------ -------
Interest receivable Dividend income
Six Six Year Six Six Year
months months ended months months ended
ended ended 31st ended ended 31st
30th June 30th June December 30th June 30th June December
2003 2002 2002 2003 2002 2002
#'000 #'000 #'000 #'000 #'000 #'000
---------------- ---- ---- ----- ------ ------- ------- ------ ------ -------
By geographical
segment:
United Kingdom 8,881 9,812 19,796 9 11 90
Jersey,
Switzerland and
other European 442 447 921 - - -
countries
The Americas 36 29 67 - - -
---------------- ---- ---- ----- ------ ------- ------- ------ ------ -------
9,359 10,288 20,784 9 11 90
---------------- ---- ---- ----- ------ ------- ------- ------ ------ -------
Fees and commissions receivable Other operating income
Six Six Year Six Six Year
months months ended months months ended
ended ended 31st ended ended 31st
30th June 30th June December 30th June 30th June December
2003 2002 2002 2003 2002 2002
#'000 #'000 #'000 #'000 #'000 #'000
---------------- ---- ---- ----- ------ ------- ------- ------ ------ -------
By geographical
segment:
United Kingdom 30,874 32,954 58,641 623 610 1,210
Jersey,
Switzerland and
other European 7,589 5,993 13,282 24 8 5
countries
The Americas 802 830 1,957 - - -
---------------- ---- ---- ----- ------ ------- ------- ------ ------ -------
39,265 39,777 73,880 647 618 1,215
---------------- ---- ---- ----- ------ ------- ------- ------ ------ -------
(b) Additional segmental analysis:
Gross operating income Profit before taxation
before goodwill amortisation
Six Six Year Six Six Year
months months ended months months ended
ended ended 31st ended ended 31st
30th June 30th June December 30th June 30th June December
2003 2002 2002 2003 2002 2002
#'000 #'000 #'000 #'000 #'000 #'000
----------------------- ------- ------ ------- ------ ------ --------
By class of business:
Investment management
and banking 38,617 40,511 75,238 8,516 9,484 15,225
Trust services 10,663 10,183 20,731 1,569 1,936 3,916
----------------------- ------- ------ ------- ------ ------ --------
49,280 50,694 95,969 10,085 11,420 19,141
----------------------- ------- ------ ------- ------ ------ --------
By geographical
segment:
United Kingdom 40,386 43,398 79,737 7,993 9,527 14,560
Jersey, Switzerland and
other European
countries 8,055 6,448 14,208 1,765 1,514 3,428
The Americas 839 848 2,024 327 379 1,153
----------------------- -------- ------ ------- ------ ------ --------
49,280 50,694 95,969 10,085 11,420 19,141
----------------------- -------- ------ ------- ------ ------ --------
13 Interim report
The interim report will be sent to registered shareholders. Further copies will
be available to the public from the Company's registered office at 159 New Bond
Street, London W1S 2UD.
Independent review report by KPMG Audit Plc to Rathbone Brothers Plc
Introduction
We have been engaged by the Company to review the financial information which
comprises the consolidated profit and loss account, consolidated balance sheet,
consolidated cash flow statement, consolidated statement of total recognised
gains and losses, reconciliation of movements in shareholders' funds and notes 1
to 13 and we have read the other information, which comprises only the
Chairman's Statement, contained in the interim report and considered whether it
contains any apparent misstatements or material inconsistencies with the
financial information.
This report is made solely to the Company in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the Listing
Rules of the Financial Services Authority. Our review has been undertaken so
that we might state to the Company those matters we are required to state to it
in this report and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the Company for
our review work, for this report, or for the conclusions reached.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where they
are to be changed in the next annual accounts in which case any changes, and the
reasons for them, are to be disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
Review of interim financial information issued by the Auditing Practices Board.
A review consists principally of making enquiries of Group management and
applying analytical procedures to the financial information and underlying
financial data and, based thereon, assessing whether the accounting policies and
presentation have been consistently applied unless otherwise disclosed. A review
is substantially less in scope than an audit performed in accordance with
Auditing Standards and therefore provides a lower level of assurance than an
audit. Accordingly we do not express an audit opinion on the financial
information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30th June 2003.
KPMG Audit Plc
Chartered Accountants
8 Salisbury Square
London EC4Y 8BB
3rd September 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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