Preliminary results for the twelve months ended 31 December 2020

Paul Stockton, chief executive, said:

“Rathbones delivered a resilient performance in an immensely challenging year. We continued to deliver a high-quality service to clients, whilst prioritising the safety and wellbeing of our employees, advancing our strategy and keeping a close eye on operating costs.

Funds under management and administration (FUMA) grew by 8.5% to reach £54.7 billion at 31 December 2020, reflecting both strong investment performance and growth. Underlying profit before tax increased by 4.3% to £92.5 million, delivering an underlying operating margin of 25.3% that was consistent with the prior year despite lower investment markets.

As a consequence, the board is announcing a final 2020 dividend of 47 pence per share, which brings the total dividend to 72 pence per share, an increase of 2.9% over 2019. 2020 marks the 11^th consecutive year in which we have increased our total annual dividend.

Whilst we expect 2021 to remain volatile, our balance sheet is robust with a strong capital position. Our near-term focus is to execute our growth strategy, to build our market share, to balance ongoing investment in the business, and to continue to apply strict cost discipline. Rathbones will emerge stronger after the challenges of the pandemic begin to subside.”

Financial highlights

• Total FUMA reached £54.7 billion at 31 December 2020, up 8.5% from £50.4 billion at 31 December 2019
• £44.9 billion in the Investment Management business, up 4.4% (2019: £43.0 billion)
• £9.8 billion in the funds business, up 32.4% (2019: £7.4 billion)
• Total net inflows across the group were £2.1 billion (2019: £0.6 billion), representing a growth rate of 4.2% (2019: 1.3%)
• Gross organic inflows in Investment Management were consistent at £3.3 billion in 2020 compared to £3.3 billion in the prior year
• Acquired inflows of £0.6 billion in Investment Management largely reflect the transfer of assets from Barclays Wealth (£0.4 billion)
• Investment Management outflows for the year totalled £3.3 billion (2019: £3.9 billion)
• Net inflows in our funds business were £1.5 billion (2019: £0.9 billion)
• Profit before tax for the twelve months to 31 December 2020 was £43.8 million (2019: £39.7 million). Basic earnings per share totalled 49.6p (2019: 50.3p)
• Operating income totalled £366.1 million, 5.2% ahead of the prior year (2019: £348.1 million)
• Operating income in Investment Management totalled £320.6 million, an increase of 3.1% on the prior period (2019: £310.9 million)
• Operating income in our funds business totalled £45.4 million, an increase of 22.0% on the £37.2 million reported in 2019
• Underlying¹ profit before tax totalled £92.5 million, an increase of 4.3% (2019: £88.7 million); underlying operating margin of 25.3% (2019: 25.5%)
• Underlying1 earnings per share totalled 133.3p (2019: 132.8p)

^{1. A reconciliation between the underlying measure and its closest IFRS equivalent is provided in Table 2 of the financial performance section.}

Declaration of final dividend

The board recommends a final dividend of 47p for 2020 (2019: 45p), making a total of 72p for the year (2019: 70p), an increase of 2.9% on 2019. This reflects confidence in the outlook for the business and its strong capital position. The dividend will be paid on 11 May 2021, subject to shareholder approval at our 2021 Annual General Meeting, to shareholders on the register on 23 April 2021.

Read the full statement here

For further information contact:

Rathbone Brothers Plc
Tel: 020 7399 0000
email: dominic.lagan@rathbones.com

Paul Stockton, Chief Executive
Jennifer Mathias, Group Finance Director
Dominic Lagan, Head of Investor Relations

Camarco
Tel: 020 3757 4984
email: ed.gascoigne-pees@camarco.co.uk
Ed Gascoigne-Pees
Julia Tilley