Rathbones Group makes 'positive start' to FY24

Wealth manager Rathbones said on Thursday that it had made a "positive start" to FY24, partly due to its merger with Investec Wealth & Investment back in 2023.

Rathbones said total funds under management and administration were of £107.6bn as of 31 March, up from £105.3bn at the end of December, including £49.2bn in Rathbones Investment Management and £42.4bn in IW&I, up from £48.0m and £42.2m, respectively. Rathbones Asset Management FUMA rose from £13.8m to £15.0m.

However, the London-listed group noted that total net flows in wealth management were negative in the quarter as positive inflows in Rathbones were offset by outflows in IW&I.

Underlying net operating income totalled £223.6m for the quarter, representing growth of 13.6% year-on-year, excluding the contribution of £89.8m from IW&I during the period.

Rathbones also highlighted that it continues to expect full-year underlying operating margins to be "mid-20%".

Chief executive Paul Stockton said: "Rathbones has made a positive start to 2024, with operating income 13.6% higher than the first quarter of 2023 on a like-for-like basis, and 89.8% higher incorporating Investec Wealth & Investment. Total funds under management and administration increased by 2.1% in the quarter to £107.6bn. Despite outflows remaining elevated overall, Rathbones Investment Management continued to deliver strong gross inflows in discretionary & managed services, achieving an annualised net organic growth rate of 2.8%. The integration of IW&I is progressing well with run-rate synergies now £10.6m, up from the £8.0m reported at 31 December 2023.

"While economic uncertainty and headwinds remain in the UK and abroad, Rathbones is well-equipped to navigate challenging market conditions. We remain confident in our integration and synergy targets and are well-positioned to take advantage of the future benefits of the group's scale."

As of 1025 BST, Rathbones shares were up 0.23% at 1,770.02p.

Reporting by Iain Gilbert at Sharecast.com