Rathbones H1 profits surge after IW&I merger
Rathbones Group
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16:34 06/09/24
Rathbones posted a jump in first-half profit and funds under management on Wednesday as it said it was ahead of its objectives following a merger with Investec Wealth & Investment (IW&I).
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In the six months to 30 June, funds under management and administration rose 3.4% to £108.9bn, with a "significant" improvement in net flows in the second quarter.
Meanwhile, underlying pre-tax profit surged 120.7% to £112.1m and the interim dividend was lifted 3.4% to 30p a share.
Rathbones - which completed its merger with IW&I in September 2023 - said it had surpassed both the strategic and financial objectives it set out upon the announcement of the combination.
It has achieved synergy realisation ahead of target, with run-rate synergies of £20m delivered to the end of June 2024, well ahead of its year one post-combination target of £15m.
These synergies delivered an £8m benefit to underlying operating profit for the first half.
The company said that following a sustained period where equity market growth was dominated by a select number of companies, it was encouraging to see more of a recovery across a wider number of sectors and geographies in the first half, with investor sentiment towards the UK in particular becoming more positive towards the end of the period.