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Rathbones reports strong growth amid market turmoil

Rathbones reports its highest underlying rate of net organic growth in funds under management for the first half of the year but faces the future with “guarded optimism”.

The discretionary investment manager reported a rise in pre-tax profits for continuing operations of £24.0 million for the first half, up from 23.4 million in 2007 despite difficult conditions on the financial markets. Operating income increased by 3.4 per cent to £70.2 million, up from £67.9 million in 2007.

Basic earnings per share from continuing operations also rose by 2.3 per cent to 41.0p, up by 1 pence on the previous period. Interim dividend per share remained unchanged at 16.0p for 2008. Total funds under management for the Company decreased by 8.6 per cent to £12.0 billion over the six months period down from £13.1 billion.

Earlier this month Rathbones announced its intention to dispose of its trust businesses in Jersey and Singapore with the view that offshore structures and services are best owned offshore by their management.

Commenting on the interim results, Rathbone Brothers chairman Mark Powell says: “Our results for the half year to 30 June 2008 show further progress for Rathbones, and at 8.2 per cent, the highest underlying rate of net organic growth in funds under management in our core business that we have reported.

“The uncertainties and volatilities created by the crisis in credit markets may provide attractive investment opportunities for the longer-term and call for precisely the investment management skills that we seek to provide to all of our clients. We face the medium and long-term future with guarded optimism.”


A matter of competence

The question of whether the Government should compensate Equitable Life policyholders, as suggested by Parliamentary Ombudsman Ann Abraham, with a reported bill upwards of £4bn has caused a furious debate.

UK economic growth slows to 0.2%

UK economic growth slowed down in the second quarter of 2008 with an increase of just 0.2 per cent, according to figures from the Office for National Statistics.


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