Mark Nicholls, Chairman of Rathbone Brothers Plc, said:
"2014 was a challenging year for most investment markets, which became increasingly volatile in the second half. Despite this, Rathbones had another good year and achieved strong and broad-based growth. Our total funds under management grew by 23.6 % over the year to £27.2 billion and we warmly welcomed more than 5,000 new clients during the year.
"Rathbones looks forward to future growth opportunities in the sector, but remains aware of the possible adverse market effects that current political and economic uncertainty, both in this country and overseas, may have. I look forward to seeing the full benefit of our 2014 acquisitions in 2015, and working with our board in the coming years to develop and grow the business."
Highlights:
- Total funds under management were £27.2 billion at 31 December 2014, up 23.6% from £22.0 billion at 31 December 2013. The FTSE 100 Index decreased by 2.7% and the FTSE WMA Balanced Index increased by 4.2% over the same period.
- The total net annual growth rate of funds under management for Rathbone Investment Management was 19.6% (2013: 9.0%). This comprised £3.2 billion of acquired inflows (2013: £0.6 billion), including £2.6 billion in relation to the Jupiter Asset Management and Deutsche Asset & Wealth Management transactions, and £0.8 billion of net organic growth (2013: £0.9 billion). The underlying rate of net organic growth was 4.0% in 2014 (2013: 5.4%).
- Rathbone Unit Trust Management saw record gross sales of £1.0 billion in 2014, and saw funds under management increase by 38.9% to £2.5 billion at 31 December 2014 (2013: £1.8 billion).
- Underlying operating income in Rathbone Investment Management of £185.3 million for the year ended 31 December 2014 (2013: £165.3 million) represents an increase of 12.1%. The average FTSE 100 Index was 6657 on our quarterly billing dates (2013: 6419), an increase of 3.7%.
- Underlying operating expenses increased 10.6% to £139.3 million largely reflecting inflation, growth of the business and higher performance-based staff costs.
- Underlying profit before tax (excluding a refund of levies for the Financial Services Compensation Scheme, gain on disposal of financial securities, gain on disposal of our pension administration business, charges in relation to client relationships and goodwill, contribution to legal settlement and transaction costs) increased 21.8% to £61.5 million from £50.5 million. Underlying earnings per share increased by 18.1% to 102.4p (2013: 86.7p).
- Profit before tax was £45.7 million for the year ended 31 December 2014, an increase of 3.4%, compared to £44.2 million in 2013. Basic earnings per share decreased by 0.3% to 75.9p (2013: 76.1p).
- The board recommends a 33p final dividend for 2014 (2013: 31p), making a total of 52p for the year (2013: 49p), an increase of 6.1% on 2013.
