‘Quiet revolution’ – Rathbones shares rise along with CEO’s ambition
FTSE 250 company Rathbones saw its share price soar in early morning trading as it announced it was aspiring to become the “best wealth manager in the UK by far”.
Shares rose 9.05 per cent to 2,410 pence, gaining 24.6 per cent this year to date.
Profit before tax jumped 53.5 per cent to £152.9m, from £99.6m the previous year, driven by the performance of integrated synergies and higher funds under management (FUMA).
The solid set of results follow a turbulent few weeks for the wider UK wealth management space after a number of firms saw their share prices plummet after the unveiling of a new AI tool, causing investors to question how AI may change or even undermine the sector.
But Rathbones chief executive, Jonathan Sorrell, who took the helm in August 2025, brushed off concerns, labelling AI as an effective tool which allows advisers to spend more time with clients and build relationships.
He said: “We just feel that is a massive opportunity in terms of how it’s going to help achieve…change in our productivity as a business and the quality of service offering that we can provide.
“What it does is free up time to focus…on the human relationship we have with our client.”
UK wealth management
Recent acquisitions of Schroders by American investment firm Nuveen and Evelyn Partners by high street bank Natwest has also sparked debate about sector trends, but Sorrell argued the market has “long term growth dynamics” and is not “cyclical”.
He noted that Rathbone’s client base, individuals with assets between £1m and £5m, are the fastest growing segment of the market, while the campaign by the industry and the government to push more people to invest offers “an exciting proposition”.
While he acknowledged that the “industry will consolidate further over time” he noted Rathbone’s is only looking to “optimise” its current business, with stable shareholders and the IW&I business positioning the group for further growth.
Group performance
FUMA reached £115.6bn, up from £109.2bn, bolstered by the market recovering from first half lows sparked by Trump’s ‘Liberation Day’ tariff turmoil.
The group confirmed it was extending its £50m share buyback programme, which it completed in mid February, by £20m, with the group noting that it wants to use its “shareholders capital as efficiently as possible”.
The Board proposed a final dividend of 68.0 pence per share, bringing the total for the year to 99.0 pence, a 6.5 per cent increase.
The group also acknowledged the performance of its Investec Wealth and Investment (IW&I) arm, which successfully completed its integration earlier in the year.
The business exceeded expectations, contributing £76m on an annualised run-rate basis, significantly above Rathbones’ £60m target, and making the group the UK’s largest discretionary wealth manager.
Sorrel added that it had always set out “to maximise the opportunity” of integrating the business and “identified more areas” where IW&I could contribute to overall growth.
Quiet revolution
Rathbones also confirmed it is setting its sights on becoming the UK’s leading wealth manager, through becoming the first choice for clients and talent as well as upgrading its operational efficiency.
Rae Maile or Panmure Liberum noted that there is a “quiet revolution underway”, but that the wealth manager must remain focused on building client relationships and developing capital efficiency.
He said: “Rathbones enjoys strong client relationships, but it must seek to grow new ones as well as managing more effectively inherent redemption activity.
“It will seek to do this through clearer definition of and enhancement to its investment capabilities, further penetrating its financial planning and advice capabilities.
“The intention is to simplify the operating model, removing internal frictions and barriers to decision-making and activity, but also to develop further its capital efficiency.”
Group finance director, Iain Hooley, also noted that instead of focusing on entering the FTSE 100 in its bid to lead the space, it is working to pull in older clients.
Hooley said: “The opportunity in the wider market with the ageing population, growing levels of wealth…the intergenerational transfer of wealth that’s going to happen, all of these things are definitely playing right into our space.”