RATHBONES GROUP PLC FIRST QUARTER TRADING UPDATE

Paul Stockton, Group Chief Executive Officer of Rathbones, 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 ("IW&I"). Total funds under management and administration ("FUMA") increased by 2.1% in the quarter (Q1 2023: 1.1%) to £107.6 billion. Despite outflows remaining elevated overall, Rathbones Investment Management ("RIM") continued to deliver strong gross inflows in discretionary & managed services, achieving an annualised net organic growth rate of 2.8% (Q1 2023: 2.6%).

"The integration of IW&I is progressing well with run-rate synergies now £10.6 million, up from the £8.0 million reported at 31 December 2023. Work to combine the Group's offices in locations where both Rathbones and IW&I have offices is also progressing well, with Birmingham, Cheltenham, Exeter, and Glasgow colleagues already working in combined premises and others, including our London head office, to follow during this year. We also remain on track to launch our digital Client Lifecycle Management system in June this year.

"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."

Financial highlights:

• Total FUMA reached £107.6 billion at the end of the first quarter (31 December 2023: £105.3 billion) comprising:
• £49.2 billion in RIM (31 December 2023: £48.0 billion).
• £42.4 billion in IW&I (31 December 2023: £42.2 billion).
• £1.0 billion remaining in Saunderson House (31 December 2023: £1.3 billion) after FUMA of £0.4 billion were migrated into Rathbones propositions in the quarter. We have received client agreement to migrate a further £284 million of FUMA which is currently presented as Saunderson House FUMA pending completion of the migration process.
• £15.0 billion in Rathbones Asset Management ("RAM") (31 December 2023: £13.8 billion).
• Market and investment performance added £2.8 billion to Group FUMA in the quarter.
• Total net flows in wealth management were negative in the quarter as positive inflows in Rathbones were offset by outflows in IW&I:
• Rathbones discretionary and managed net inflows for the quarter totalled £0.4 billion (Q1 2023: £0.4 billion).
• Net outflows in IW&I were £0.6 billion, with the impact of previously disclosed investment manager departures in line with the prior quarter. Total outflows were also impacted by the withdrawal of funds from low margin mandates in the period, equating to c.£0.2 billion. Post-combination investment manager turnover continues to be low in both entities.
• Net inflows into our multi-asset fund range totalled £0.1 billion in the quarter. Net outflows in RAM single strategy funds of £0.2 billion were resilient against the wider asset management industry backdrop.
• Underlying net operating income totalled £223.6 million for the three months ended 31 March 2024 (31 March 2023: £117.8 million), representing growth of 13.6% relative to 2023, excluding the contribution of £89.8 million from IW&I during the period.
• We continue to expect underlying operating margin for full year 2024 to be mid-20% and to incur non-underlying costs in line with those stated at the year-end.
• The final dividend for the year ended 31 December 2023 of 24 pence per share will be paid on 14 May 2024, subject to shareholder approval at the Annual General Meeting on 9 May 2024.
  

FULL STATEMENT HERE

For further information contact:

Rathbones Group Plc
Paul Stockton, Group Chief Executive Officer
Iain Hooley, Group Chief Financial Officer
Shelly Patel, Head of Investor Relations

Tel: 020 7399 0071
Email: [email protected]

Camarco
Ed Gascoigne-Pees
Julia Tilley
Tel: 020 3757 4984
Email: [email protected]

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