StockMarketWire.com - Total funds under management at Rathbone Brothers surged 14.3% in 2019, reaching £50.4 billion, according to its preliminary results.

Funds in its investment management arm grew 11.7% to £43 billion, while operating income increased 12.9% to £310.9 million for the year ended December 31, 2019.

Rathbone Unit Trust Management saw its funds under management rise to £7.4 billion over the year to December, 31 2019, up from £5.6 billion a year prior.

The Group reported underlying operating expenses of £259.4 million, up from £220.4 million in 2018, which not only included the full year impact of a number of growth led investments and Speirs & Jeffrey, but also software impairment costs of £3.1 million and a considerable increase in the Financial Services Compensation Scheme levy.

Underlying profit before tax of £88.7 million reflected the above in addition to the expected cessation of 'risk-free' managers' box dealing profits in the unit trusts business from mid-January 2019 and the acceleration of some deferred executive awards in relation to recent executive retirements.

Statutory profit before tax of £39.7 million, down from £61.3 million in 2018, reflected anticipated items, most notably the costs associated with the acquisition of Speirs & Jeffrey.

The majority of these costs were in relation to deferred consideration payments to former shareholders of the business which have been treated as remuneration in accordance with accounting standards.

As part of the preliminary results, the board recommended a final dividend of 45p for 2019, making a total of 70p for the year and an increase of 6.1% on 2018.






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