Rathbone Brothers PLC : Interim Management Statement
May 10 2012 - 2:01AM
UK Regulatory
TIDMRAT
Rathbone Brothers Plc
Rathbones' first quarter net operating income up 12%
This statement, issued on the day of the Annual General Meeting, is an Interim
Management Statement in accordance with the UK Listing Authority's Disclosure
and Transparency Rules. It covers the period from 1 January 2012 to 9 May
2012, and includes trading results for the three months ended 31 March 2012.
At the Annual General Meeting later today, Mark Nicholls, Chairman of Rathbones,
will say:
"In spite of challenging investment conditions our first quarter's net operating
income was up 12% on 2011. Total net growth in organic and acquired funds under
management in our Investment Management business was GBP299 million representing
an annualised growth rate of over 8%.
"We are continuing to invest in people and systems to improve our service and
efficiency and to respond to regulatory change. Whilst investment markets are
expected to remain uncertain, Rathbones is as well placed as ever to develop
future growth opportunities from our new and much improved head office at 1
Curzon Street."
Highlights:
* Net operating income in Investment Management of GBP37.9 million (2011: GBP33.9
million) was up 11.8% year on year in the first three months of 2012. The
FTSE 100 Index was 5724 on our 5 April billing date, down 4.7% compared to
6007 on the same date in 2011. The FTSE APCIMS Balanced Index, measured over
the same period, fell by 0.3%. Commission income reflected normal seasonal
patterns in the run up to the 2011/12 tax year end.
* Net interest income of GBP2.6 million in the first three months of 2012 was
13.0% higher than the GBP2.3 million earned in the corresponding period in
2011 reflecting both a slightly higher yield and a higher average balance of
treasury assets. Treasury assets averaged GBP944 million in the first quarter
of 2012 (2011 average: GBP836 million).
* Total funds under management were GBP16.81 billion at the end of the first
quarter*, up 6.1% from GBP15.85 billion at 31 December 2011. This compares to
an increase of 2.7% in the FTSE 100 Index and an increase of 3.2% in the
FTSE APCIMS Balanced Index over the same period.
* Net organic growth in Investment Management of GBP134 million for the quarter
represents an annualised growth rate of 3.6% compared to 8.6% in the first
three months of 2011. Acquired inflows into Investment Management totalled
GBP165 million in the first quarter, which when added to net organic growth
represents a net annual growth rate of 8.1% (2011: 9.8%).
* Funds under management in Unit Trusts increased 8.3% to GBP1.18 billion at 31
March 2012 from GBP1.09 billion at 31 December 2011, with continuing net
inflows of GBP30 million during the quarter.
* On 27 February 2012, Rathbones successfully completed the move into its new
London head office at 1 Curzon Street. The associated profit and loss
account charge in the first quarter was lower than previously indicated at
GBP0.3 million, adding to one off relocation costs of GBP3.0 million reported in
2011.
* Funds under management at the end of the first quarter are measured at 5 April
for Investment Management, to coincide with the first key charging date for
Investment Management private clients, and 31 March for Unit Trusts.
Net operating income
3 months ended 31 March
2012 2011 Change
GBPm GBPm %
Investment Management
- Fees 21.7 18.9 14.8%
- Commissions 11.0 10.5 4.8%
- Interest 2.6 2.3 13.0%
- Fees from advisory services(1) & other income 2.6 2.2 18.2%
--------------------------
37.9 33.9 11.8%
Unit Trusts 2.2 2.0 10.0%
--------------------------
Net operating income 40.1 35.9 11.7%
--------------------------
(1) Including income from trust, tax and pension advisory services.
Funds under management
(i) Investment Management Period ended 5 April(2)
2012 2011 Change
GBPm GBPm %
Opening FUM (1 January) 14,764 14,586
Inflows 612 589
+------------------------------------------------------------------------------+
| Organic new business 447 547 |
| |
| Acquired new business 165 42 |
+------------------------------------------------------------------------------+
Outflows (313) (233)
Market adjustment 565 42
----------------
Closing FUM (5 April) 15,628 14,984 4.3%
----------------
Underlying annualised rate of net 3.6% 8.6%
organic growth
Total annualised net organic and 8.1% 9.8%
acquired growth
FTSE 100 Index (5 April) 5724 6007 -4.7%
FTSE APCIMS Balanced Index (5 2988 2997 -0.3%
April)
Acquired new business includes GBP82m of funds under management arising from the
acquisition of R M Walkden & Co Limited on 5 April 2012.
(ii) Unit Trusts 3 months ended 31 March
2012 2011 Change
GBPm GBPm %
Opening FUM (1 January) 1,084 1,043
Inflows 79 55
Outflows (49) (38)
Market adjustment 65 (5)
----------------
Closing FUM (31 March) 1,179 1,055 11.8%
----------------
----------------
Total funds under management 16,807 16,039 4.8%
----------------
(2) Key charging dates for investment management clients are 5 April, 30 June,
30 September and 31 December. Unit trust income accrues on daily levels of
funds under management.
For further information contact:
Rathbone Brothers Plc Quill PR
Tel: 020 7399 0000 Tel: 020 7466 5054
email: marketing@rathbones.com
Mark Nicholls, Chairman Hugo Mortimer-Harvey
Andy Pomfret, Chief Executive
Paul Stockton, Finance Director
Rathbone Brothers Plc
Rathbone Brothers Plc is a leading independent provider of high-quality,
personalised investment and wealth management services for private investors,
charities and trustees. This includes discretionary investment management, tax
and financial planning and unit trusts.
Rathbones has some 750 staff in 11 UK locations and Jersey, and has its
headquarters at 1 Curzon Street, London.
www.rathbones.com
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Rathbone Brothers PLC via Thomson Reuters ONE
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