Rathbones posts 16.7% pre-tax profit increase in first half of 2017

Asset manager Rathbone Brothers saw its pre-tax profits increase 16.7% to £26.6m in the first half during the release of its second-quarter results on Tuesday.

That figure was up from £22.8m in 2016, with underlying earnings per share for the period increasing from 56.5p to 68.4p.

Rathbones’ increase in profits came despite spending almost £16m on new offices in London during the period.

The board of the firm also announced that it was recommending a yearly dividend of 22p per share for 2017.

The FTSE 250-listed company, which is responsible for the management of over £36bn worth of assets, saw organic and acquired growth of £0.6bn in the first half of the year.

Rathbones’ CEO Philip Howell pointed out it has been a strong six months for the company but remained cautious in the short term with political uncertainty aplenty.

"The first six months of 2017 has seen another busy period for Rathbones as we continue to deliver our strategic plans without detracting from our high standards of service to our clients,” Howell said.

“We remain confident in the medium term potential of our growth initiatives. Short term market conditions are dominated by a backdrop of ongoing geopolitical uncertainty and we will continue to invest with discipline."

Rathbone Brothers was 1.86% higher in early trading in London at 2679, as of 09:00 BST.