LONDON (ShareCast) - - FuM up 8.6% to £23.9bn for H1
- Settles £15m legal dispute
- Analysts say numbers slightly weaker than expected

Rathbone Brothers, the UK wealth management group that dates back to 1742, said on Thursday that funds under management (FuM) rose 8.6% to £23.9bn in the first half of the year. The company also said that it had settled a long-running legal dispute.

Total net growth in FuM was £1.5bn, an annualised growth rate of 14.3% compared with 9.4% a year earlier, the company said in a statement.

The FTSE 250 company, which appointed a new chief executive in March, said its trading outlook remained positive.

Stockbroker Numis said the half year figures were a little weaker than expected but said that Rathbones was among the "quality names" in wealth management and deserved a slight "premium" rating because of its strong and consistent financial performance.

Rathbones said its board had recommended a 19 pence interim dividend for 2014, up 5.6% on 2013. It said it expected recent acquisitions will help earnings in 2015.

In a separate announcement, Rathbones said that it had settled a legal dispute involving a former subsidiary, which will result in a cash payment of £15m.

The payment will be treated as an exceptional item.

Underlying profit before tax (excluding charges in relation to client relationships and goodwill, gain on disposal of financial securities and transaction costs) increased 13.4% from £26.1m to £29.6m.

Rathbones's share price was up by about 1% by 09:30am.


NH

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