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Rathbones Group PLC on Wednesday said it was ahead of target in the first half of 2024, with the company achieving synergies and gaining additional funds following its merger with Investec Wealth & Investment Ltd. The London-based investment and wealth management company said that in the six months that ended June 30, pretax profit more than doubled to £65.3 million from £26.0 million. Rathbones raised its interim dividend by 3.4% to 30 pence per share from 29p before, in line with the company’s progressive policy. Funds under management and administration rose 80% to £108.91 billion from £60.53 billion at June 30, 2023. This follows the all-share combination with Investec W&I in September. That business previously had been part of Investec PLC. Post-merger, FUMA increased 3.4% from £105.3 billion at the end of December. Total gross inflows increased by 3.3% in the second quarter 2024 to £3.1 billion from £3.0 billion in the previous quarter. Meanwhile, total gross outflows slowed by 8.6% to £3.2 billion from £3.5 billion over the same period. Chief Executive Officer Paul Stockton said: ‘Rathbones has surpassed both the strategic and financial objectives we set out upon the announcement of the Investec Wealth & Investment (IW&I) combination. ‘We have achieved synergy realisation ahead of target, with run-rate synergies of £20 million delivered to the end of June 2024, well ahead of our year one post-combination objective of £15 million. These synergies have delivered a benefit to underlying operating profit for the six-month period of £8 million.’ The total costs of the merger are expected to be £177 million, which will be spread over the next two to three years, and partly funded by £45 million of capital left in Investec at completion. ‘Although our focus as a business, and for clients, is over the long term, the broader outlook for flows in the shorter-term is improving as client confidence to invest increases, helped by a more certain UK political backdrop, lower inflation and the increased likelihood of a reduction in interest rates. Our breadth of proposition, growing marketing and distribution capability and robust balance sheet will be the foundation on which we will take advantage of a structurally growing sector,’ Rathbones said. The company ended the period with cash and cash equivalents totaling £1.26 billion, up 2.1% from £1.24 billion. Rathbones shares were up 5.3% to 1,884.00 pence each in London on Wednesday morning. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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