Rathbones has reported a pre-tax profit of £48.8m for the six months to 30 June 2021, a £21.5m spike from the same period last year.
The firm said profit was “materially ahead” of last year’s figure due to continued growth in the business and a reduction of deferred consideration charges in relation to the acquisition of Speirs & Jeffrey over the year.
Funds under management and administration (FUMA) climbed to £59.2bn, an 8.2% increase from £54.7bn at the end of December 2020. The MSCI Pimfa Private Investor Balanced Index returned 6% over the period.
Assets grew following the acquisition of wealth manager Saunderson House, adding £4.7bn to its AUM, in a deal worth £150m, catapulting Rathbones to third largest wealth manager in the UK.
See also: How does Rathbones’ acquisition of Saunderson House stack up?
“The acquisition of Saunderson House announced on 23 June 2021, accelerates our financial advice strategy, and presents an exciting opportunity to explore wider UK wealth segments,” said Rathbones chief executive Paul Stockton (pictured).
“The deal continues to be on track to complete during the third quarter of 2021, adding £4.7bn of funds under management and administration.
“The UK wealth market is changing quickly, and Rathbones remains well positioned to take advantage of future growth opportunities.”
The company’s investment management business reported assets of £47.8bn at the end of the period, compared to £41.4bn the year before. Its funds business has £11.4bn in, compared to £8bn as of 30 June 2020.
Total net flows for the investment management business were up at £500m, a £300m dip from the same period last year.
Net organic inflows totalled £400m and purchased flows came out at £100m, compared to £500m for 30 June 2020. The company attributes this to the acquisition of Barclay Wealth’s Personal Injury and Court of Protection business.
The company also reported an operating income of £213.5m for the first half of 2021, a 19.3% increase from the same time last year.
