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Rathbones Group PLC (RAT)
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Rathbones lifts annual dividend as Investec UK integration pays off
(Alliance News) - Rathbones Group PLC on Wednesday reported a rise in funds under management, as the integration of the former Investec business in the UK helped attract "record gross inflows".
In response, the London-based investment and wealth management company declared a 63.0 pence final dividend, up from 24.0p a year ago, increasing its full-year payout by 6.9% to 93.0p from 87.0p. Earnings per share were 63.0p in 2024, up from 52.6p in 2023.
Rathbones said funds under management and administration stood at GBP109.2 billion on December 31, up 3.7% from GBP105.3 billion a year before. This latest total included GBP43.0 billion from Investec Wealth & Investment.
In September last year, Rathbones completed an all-share combination with Investec Wealth & Investment Ltd, the UK arm of Investec PLC. As a result, Investec now owns around 41% of Rathbones.
Rathbone shares were up 1.1% to 1,716.00 pence in London early Wednesday. Investec was up 2.1% to 534.00p.
Gross inflows were GBP12.1 billion in 2024, up from GBP7.7 billion in 2023. Outweighing inflows in both years, however, gross outflows were GBP13.5 billion, up from GBP8.5 billion. Making up for the net outflows, market and investment performance contributed GBP5.3 billion to FuMA in 2024 and GBP5.1 billion in 2023.
Rathbones reported pretax profit of GBP99.6 million in 2024, up 73% from GBP57.6 million in 2023, as operating income rose by 57% to GBP895.9 million from GBP571.1 million, reflecting the IW&A acquisition.
On an underlying basis pretax profit nearly doubled to GBP227.6 million from GBP127.1 million, as underlying operating margin improved to 25.4% from 22.3%.
Looking ahead, Rathbones said it is on track for its target of a 30% underlying operating margin from September 2026.
"2024 has been a very exciting year for the group as we began in earnest to bring Rathbones and IW&I together as one combined business committed to helping our clients achieve their longer-term financial goals," said Chief Executive Paul Stockton.
"In an eventful year, we attracted record gross inflows by leveraging our enlarged platform, grew underlying operating margin, exceeded the 2024 synergy targets we set out for the IW&I combination."
By Tom Waite, Alliance News editor
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