Investment manager Rathbone Brothers saw a leap in pre-tax profits for the year ended December 31st and said it is 'cautiously optimistic' about the year ahead.
Pre-tax profits rose 30% to £39.2m compared to £30.1m in 2010, on operating income of £144.45m (2010: £127.2m).
Basic earnings per share were 66.72p, up 34% on 49.76p in 2010.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Rathbone's Investment Management sector generated underlying net operating income of £135.1m for the year (2010: £119.8m), representing an increase of 13%.
Chief Executive Andy Pomfret said: "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. 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 board recommended a final dividend of 29p, 1p higher than the previous year, and 2p higher for the total dividend which stands at 46p.
Peel Hunt said there was "little surprise" in the results, adding that the business is "delivering good levels of new business and operating margins remain impressive". Despite this the broker downgraded the stock from buy to hold with the shares now trading above its price target of 1,270p.
Shares fell 1.09% to 1,276.00p.
NR
