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Pre-tax profits at Rathbone Brothers fell by 14.5 per cent for 2016, dropping to £50.1m as the FTSE 250 wealth manager was hit by acquisition and head office relocation costs.
The company also cited client relationship charges, but still raised the final dividend to 36p for 2016, making a total of 57p for the year – up almost 4 per cent on 2015. Excluding these costs, pre-tax profits increased 6.4 per cent to £74.9m.
This year, Rathbone moved its head office from Curzon Street in Mayfair to Finsbury Circus on the edge of the City of London. Relocation costs were estimated at £13m.
Mark Nicholls, chairman, said: “This move will not only manage our property expenditure going forward but will also enable our growing headcount in London to remain under one roof.”
Funds under management grew by 17.1 per cent over 2016, increasing to £34.2bn. Net annual growth for assets within the investment management division increased by 4.5 per cent over the 12-month period, driven by £800m in net organic growth and £400m from acquired inflows.
Mr Nicholls added:
After a nervous start to 2016, the FTSE 100 performed increasingly strongly as the year progressed, largely reflecting the impact of a sharp fall in sterling after the EU Referendum vote. Nevertheless, the recovery in the second half had a favourable impact on our financial performance, helping our total funds under management to grow by 17.1 per cent to £34.2bn.
In spite of continuing political and economic uncertainties, we will pursue our planned strategic growth initiatives and continue to take advantage of growth opportunities in the sector.