Rathbones reports 2011 profits increase

Rathbone Brothers has reported a 30% increase in pre-tax profits for the year to December 31, 2011.

Pre-tax profits increased to £39.2m from £30.1m for 2010 as total funds under management rose by 1.4% to £15.9 billion from £15.6 billion over the same period.

Andy Pomfret, chief executive of Rathbone Brothers, says: “Rathbones is cautiously optimistic about the prospects for 2012 with the UK equity market ending 2011 on a more positive note.

“There is no doubt that the uncertainties over Europe persist but these are balanced by indications that the world economy continues to grow and some developed economies are showing small signs of improvement, particularly the USA.”

He adds: “We are seeing signs of underlying cost inflation but we will continue to invest in and grow our business.

“We continue to be well positioned to take advantage of opportunities to welcome more investment managers and clients to Rathbones.”

The firm’s open-ended funds business, Rathbone Unit Trust Management, also saw a rise in funds under management increasing from just over £1 billion at the end of 2010 to £1.1 billion at the end of 2011.

Pre-tax profit for Rathbone Unit Trust Management was increased to £800,000 in 2011 from £500,000 in 2010.