Strong financial markets lift Rathbones FY profit 14 per cent

20th Feb 2014 08:40

Investment manager Rathbone Brothers said full year pre-tax profits rose 14 per cent to 44.2m pounds on the back of positive markets in 2013.Underlying profit before tax (excluding amortisation of client relationship intangible assets and, in 2012, head office relocation costs) increased 12.7% to £50.5m.Net operating income was £165.3m for the year to December 31st 2013, an increase of 12.7%. Total funds under management were £22bn compared with £18bn in 2012.The company has lifted the yearly dividend to 49p from 47p. Earnings per share were up 14.4% to 76.1p. Basic underlying earnings per share were up by 12% to 86.7p.Outgoing Chief executive Andy Pomfret said, despite periods of uncertainty, financial markets "generally improved throughout the year - and ended relatively high - having a positive impact on our fee and commission income"."This positive market sentiment also benefited our net organic growth rate, which is again above 5% on an annualised basis," he said."Another area of significant growth was our unit trust business where funds under management increased 38.5% to £1.8 billion. 2014 has also started positively with significant inflows into the Income and Global Opportunities funds in particular."Pomfret said costs had increased during 2013, due to investment and "higher variable awards which are performance related"."We continue to invest in our systems and expect this to deliver benefits in the coming years. We are also spending more money on our research process and anticipate expanding the number of people dedicated to this area."Shares in Rathbone were down 15p to 1770p at 08.40.FP