Wealth management group Rensburg Sheppards performed well enough during the first financial half of this year, as rising equity markets helped increase funds under management by 21.2 per cent from the end of March, to £12.1bn. However, this was markedly less than the 32.8 per cent rise in the FTSE All-Share index over the same period and was not enough to stop pre-tax profits falling sharply, in part reflecting the low level of interest rates that halved interest income from client deposits, to £3.8m.
On the investment management side, fee and other recurring income fell slightly to £30.7m, while non-recurring income, which is made up mainly of commission, was down by 1.5 per cent to £12.9m. Of the funds managed, there was a 23 per cent increase in the funds managed on a discretionary basis - where fees are higher - to £7.93bn, while non-discretionary funds under management rose 18.2 per cent to £2.92bn.
Recurring income from the fund management side was also lower by 30 per cent at £3.5m, while non-recurring income stood up well at £0.65m - barely changed from a year earlier. Funds under management rose by 15.8 per cent to £887m, and there was a useful net inflow of £14m into the seven current trusts.
Brokers estimates are under review following the results.
More analysis of company results
| RENSBURG SHEPPARDS (RBG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 654p | MARKET VALUE: | £287m | |
| TOUCH: | 640-655p | 12-MONTH HIGH: | 700p | LOW: 352p |
| DIVIDEND YIELD: | 3.9% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 456p* | NET CASH: | £35m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 62.5 | 16.4 | 26.2 | 8.50 |
| 2009 | 55.9 | 12.5 | 20.4 | 8.50 |
| % change | -11 | -24 | -22 | - |
Ex-div: 6 Jan Payment: 5 Feb *Includes intangible assets of £175m, or 398p a share | ||||
