Rathbone Brothers (RAT) has recently been the subject of positive updates from the likes of Shore Capital and RBC Capital Markets. The market appears to concur with the City analysts, sending the shares up 10 per cent on results day.
The asset manager had to contend with faltering investor confidence as the virus took hold at the end of the first quarter, but a 2 per cent decline in assets under management and administration (AuMA) since the year-end stacks up well when set against market movements and peers. Rathbone noted that the FTSE 100 index and the MSCI PIMFA Private Investor Balanced index decreased 18.2 per cent and 6.3 per cent, respectively, during the same period.
Operating income for the half-year inched-up by 3.6 per cent to £179m, with profitability underpinned by lower acquisition costs as well as higher fees and commissions. Income in investment management totalled £159m through to June, up 2.3 per cent over the same period last year.
Consensus for adjusted EPS for the year stands at 103.2p, rising to 108.6p in 2021.
| RATHBONE BROTHERS (RAT) | ||||
| ORD PRICE: | 1,672p | MARKET VALUE: | £ 959m | |
| TOUCH: | 1,622-1,758p | 12-MONTH HIGH: | 2,470p | LOW: 1,194p |
| DIVIDEND YIELD: | 4.2% | PE RATIO: | 28 | |
| NET ASSET VALUE: | 845p* | |||
| Half-year to 30 June | Fee/Commission Income (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2019 | 175 | 20.0 | 25.8 | 25.0 |
| 2020 | 184 | 27.3 | 36.1 | 25.0 |
| % change | +5 | +37 | +40 | - |
| Ex-div: | 03 Sep | |||
| Payment: | 06 Oct | |||
| *Includes intangible assets of £237m or 412p per share | ||||
