Full Year 2024 Rathbones Group PLC Earnings Call Transcript
Key Points
- Funds under Management and Administration (FUMA) increased by 3.7% to EUR109.2 billion, reflecting market-driven growth in asset values.
- Operating income grew 57% to GBP895.9 million, driven by the full-year contribution from Investec Wealth and Investment (IW&I) and underlying growth across all principal income streams.
- Underlying profit before tax grew 79% to GBP227.6 million, reflecting IW&I's full-year contribution and synergy delivery.
- The integration of Saunderson House has enhanced Rathbones Group PLC (RTBBF)'s financial planning capability alongside its investment teams.
- The company is on track to achieve its synergy target of GBP60 million, with GBP30.1 million already delivered by the end of 2024.
- Gross outflows remained elevated due to high interest rates and cost of living, resulting in higher levels of partial withdrawals from existing portfolios.
- The integration process of IW&I has led to short-term increases in technology costs and other operating expenses.
- The asset management segment's fee and commission margin showed a small decrease due to a shift towards multi-asset funds with lower annual management charges.
- The company faces headwinds from increased National Insurance Contributions (NIC) and FSCS levies, impacting cost management.
- Despite progress, the full realization of synergies and margin improvements is expected to be weighted towards the 2026 financial year, indicating slower short-term financial benefits.
Right, well, good morning, everybody, nice to see you all. Thank you very much for attending the 2024 preliminary results announcement of Rathbone's group at PLC in case you missed the signs coming in this morning.
The presentation today has been recorded, so again, the usual rules. I'd be grateful if you could keep all your mobile phones on silent for the duration. Now of course there'll be plenty of time for questions at the end of the presentation, so very much we look forward to responding to those. We have a couple of members of the Rathbone GEC here today to help in case Iain and I get into trouble.
I'm joined this morning by Iain Hooley, our group's CFO, who will take you through in a moment our financial results and indeed our medium-term guidance for the market. I'll then have an opportunity to update you on how the integration is going with IW&I, and as we begin to see more and more beyond that, talk a little bit more about how we're positioning the business to take advantage of what
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
