Rathbones Group plc (“Rathbones” or the “Group”) announces results for the six months ended 30 June 2025
Paul Stockton, Group Chief Executive Officer of Rathbones, said:
“The first half of 2025 marked a pivotal phase for Rathbones, as we successfully completed the planned client and asset migration of Investec Wealth & Investment (IW&I). This milestone increased run-rate synergies to £47.2 million as at 30 June 2025 and set the stage for the remaining synergies to be delivered in the second half of the year as we continue to realise further benefits of operating as a single, larger business. Our ability to combine personalised financial advice, investment, and wealth management services with the scale and resilience of a larger Group is proving ever more relevant as increasing numbers of people seek trusted guidance in a more complex world.
“These results mark a turning point since the combination and enable the business to shift its focus from migration to the future opportunity ahead. Rathbones enters the second half of 2025 in a position of financial strength. We maintain our progressive dividend policy, and announce today our intention to return surplus capital to shareholders through our first ever share buyback of up to £50 million. As I prepare to hand over to a new leadership team, the business is well placed to drive organic growth and deliver long-term value following the combination with IW&I.”
|
Unaudited Six months to 30 June 2025 £m (unless stated) |
Unaudited Six months to |
Audited Year to 31 December 2024 £m (unless stated) |
|
|---|---|---|---|
| Operating income |
449.1 |
447.4 |
895.9 |
| Underlying operating expenses1 |
(341.4) |
(335.3) |
(668.3) |
| Underlying profit before tax1 |
107.7 |
112.1 |
227.6 |
| Underlying operating margin1 |
24.0% |
25.1% |
25.4% |
| Profit before tax |
62.3 |
65.3 |
99.6 |
| Underlying earnings per share1 |
75.6p |
80.4p |
161.6p |
| Basic earnings per share |
42.6p |
43.9p |
63.0p |
| Dividend per share |
31.0p |
30.0p |
93.0p |
|
1. This measure is considered an alternative performance measure (APM). Please refer to Alternative Performance Measures section of the 2025 Interim Report for more detail on APMs
|
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Financial highlights:
- FUMA totalled £109.0 billion at 30 June 2025 (Q1 2025: £104.1 billion, FY 2024: £109.2 billion) comprising:
- £93.2 billion in the Wealth Management segment (£99.4 billion prior to the elimination of Wealth Management FUMA invested in the Asset Management segment of £6.2 billion).
- £15.8 billion in the Asset Management segment.
- Net outflows for the first half of 2025 were £1.0 billion (30 June 2024: £0.6 billion), reflecting the peak impact of client migration activity during the period. Encouragingly, flows improved as the half progressed, with Q2 net outflows reducing significantly to £0.2 billion (Q1: net outflows of £0.8 billion). The Wealth Management segment was broadly neutral in Q2 (Q1: net outflows of £0.5 billion).
- Despite a slight year-on-year decline in underlying profit before tax to £107.7 million (30 June 2024: £112.1 million) and an underlying operating margin of 24.0% (30 June 2024: 25.1%), largely reflecting market volatility at the end of the first quarter, we continue to expect full-year 2025 results to be in line with market forecasts, supported by a stronger starting FUMA position in the second half of 2025 and increasing synergy benefits. Most organisational design changes were completed by the end of the first half of the year, with further margin improvement expected in the second half of the year as integration progresses and the IW&I platform is decommissioned.
- Statutory profit before tax was £62.3 million (30 June 2024: £65.3 million), after recognising amortisation of client relationship intangible assets of £22.2 million (30 June 2024: £22.0 million) and integration-related costs of £23.2 million (30 June 2024: £24.8 million). We continue to expect that acquisition and integration costs will decline substantially in 2026, supporting margin expansion and future growth in basic earnings per share.
Operational highlights:
- Successful completion of the planned migration of IW&I client data and assets at the end of the second quarter marked a major milestone in the integration, completing a highly complex programme of planning, execution and risk management. Only a small number of accounts remain on the IW&I platform – primarily those undergoing probate or already in the process of exiting the service. With this phase delivered, we are well positioned to be able to deliver planned synergies in the second half.
- We have begun expanding our services with the announcement last week of our entry into the fast-growing Model Portfolio Service (MPS) market – the first in a series of new investment solutions. Further launches are planned across our private client, intermediary, charity, and asset management channels, reflecting the broader opportunity enabled by our combination with IW&I to grow, innovate, and better meet the evolving needs of clients and advisers.
Capital, proposed share buyback and dividend:
Rathbones enters the second half of 2025 in a position of financial strength and following a new capital allocation framework, and underpinned by a robust balance sheet, we are taking measured steps to return surplus capital to shareholders. The Board has approved an on-market ordinary share buyback programme of up to £50 million. This buyback remains subject to regulatory approval, and is expected to commence thereafter.
Alongside the buyback, we are increasing our interim dividend by 3.3% to 31.0p, reinforcing our progressive approach to shareholder distributions. Together, these actions mark a new phase for Rathbones, as the benefits of integration begin to translate into enhanced capital generation and long-term value creation.
