Skip to main navigation or content
Rathbone Brothers has reported another set of strong results as funds under management swelled nine per cent to £13.3bn. Of this, only two per cent was due to market growth, one per cent of the result of acquisitive growth, and six per cent came from new client funds.
Advertising
Most of its assets continue to sit with the private client side, Rathbone Investment Management, but Rathbone Unit Trust Management is growing nicely, too, with funds under management topping the £2bn mark during the period. Chairman Mark Powell says net organic funds growth at the unit trust business was 21 per cent compared to 7.8 per cent at investment management. Strong investment performance and imaginative marketing helped buoy the unit trust division, he says.
Mr Powell says the level of enquiry across all businesses is still "very encouraging" and shows no sign of slowing down. However, more volatile equity markets will clearly have some effect, even if the current downturn proves short lived.
The group has also bolstered its trust and tax division with the acquisition in April of a trust advisory business in Singapore. Apart from complementing the range of offshore services Rathbones offers its clients, it will help it attract new business from the Far East.
Bridgewell Securities expects full-year underlying EPS of 84.2p (69.5p in 2006), rising to 92.5p in 2008.
RATHBONE BROTHERS (RAT) |
||||
|---|---|---|---|---|
| ORD PRICE: | 1,245p | MARKET VALUE: | £578m | |
| TOUCH: | 1,245-1246p | 12-MONTH HIGH: | 1,379p | LOW: 1,081p |
| DIVIDEND YIELD: | 3.0% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 408p* | |||
| Half-year to 30 Jun | Pre-tax profit (£m) | Earnings per share (p) | Net div per share (p) |
|---|---|---|---|
| 2006 | 22.3 | 38.6 | 13.5 |
| 2007 | 25.9 | 44.4 | 16.0 |
| % change | +16 | +15 | +19 |
Ex-div: 21 Sep Payment: 10 Oct * includes intangible assets of £84m, or 198p a share |
|||
Rathbone has impressed, yet again. However, it looks like the market has come to expect results like these, and on a forward PE ratio of 15, the good news is already priced in. Fairly priced.
The UK’s No.1 Stockbroker
Access a selection of share tips, comprehensive company analysis and full financial data on listed companies. Plus portfolio tools with advanced alerts when you register for free here.
Advertorial Feature
With so many big moves in the world's financial markets, there have seldom been more opportunities around for spread traders. Isn't it time you joined them?
by Dominic Piccarda
© The Financial Times Limited 2008. All rights reserved. "Investors Chronicle", "FT" and "Financial Times" are trademarks of The Financial Times Limited. No part of these web pages may be reproduced or transmitted to or stored in any other website or other form of electronic retrieval system, without prior permission in writing from the editor.
Warning: Do remember, particularly if you are new to stock market investment that the prices of shares and other investments can fall sharply. You may not get back the money you originally invested. The material here is for general information only and is not intended to be relied upon for individual investment decisions. Take independent advice before making such decisions. This site is aimed at UK residents only. To read more please see our Important Warning
-IC-1.5.4a-prod - 31/10/2008 13:11:34 - carlos.princz
