Pre-tax profits more than doubled from £600,000 in 2012 to £1.4m, with positive net monthly sales throughout 2013.
Net operating income of Rathbone Investment Management rose 12.7% on the previous year, to £165.3m although it attributed a large proportion of the gain to market movement. Net interest income was down slightly, from £9.9m in 2012 to £8.6m.
Underlying operating expenses increased 13.6% to £125.9m, which it said largely reflected inflation, growth of the business, higher performance-based staff costs and legal expenses.
Funds under management saw a net growth of 9%, comprising £600m of acquired inflows and £400m following the acquisition of the private client bank of Taylor Young Investment Management, while £900m of FUM grew organically.
Philip Howell will succeed retiring chief executive Andy Pomfret on 1 March.
Rathbone Brothers chairman Mark Nicholls said: “Philip Howell will become chief executive on 1 March 2014 in succession to Andy Pomfret who is retiring. Rathbones has flourished under Andy’s strong leadership and it is a tribute to him that he not only brought in Philip as a potential successor but has also ensured a smooth handover of responsibilities. I have enjoyed working with Andy immensely and wish him well in his future plural career.
“We are well placed to take advantage of future growth opportunities in our sector and continue to look to the future with optimism. I very much look forward to working with our new chief executive, Philip Howell, and the board in the coming years to develop and grow the business further.”
At group level, FUM were £22bn to year end, up 22.2% from £18bn the previous year.
Underlying pre-tax profits – excluding exceptional items – were up 12.7% to £50.5m, while underlying earnings per share grew at a similar rate, up 12% from 77.4p to 86.7p.
The board recommended a 31 p final dividend for 2013, 1p higher than last year. This represented a total of 49p for the year.
