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Rathbones Group PLC
(LSE:RAT)
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Rating:67Neutral
Price Target:
1,810.00 p
▲(8.51% Upside)
Action:Reiterated
Date:08/03/26
The score is driven mainly by solid underlying financial performance (strong profitability and low leverage) and supportive valuation (moderate P/E with a high dividend yield). These positives are tempered by weak technical trend signals (below key moving averages with negative MACD) and earnings-call risks, notably regulatory remediation costs, fee-margin headwinds, and a reduced Q4 margin target despite improving operating momentum.
Positive Factors
Recurring fee model & AUM growth
Rathbones’ core revenue is recurring management fees tied to assets under management. A 10.7% y/y FUMA increase to £120.7bn expands the fee base and supports steady, predictable revenue and margin leverage over time, strengthening long‑term cash generation if flows and markets remain constructive.
Negative Factors
Cash‑flow volatility
Sharp YoY decline in free cash flow and a history of choppy conversion reduce confidence in cash reliability across cycles. Volatile cash generation makes funding dividends, buybacks and remediation more dependent on favourable markets and could constrain capital allocation flexibility during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring fee model & AUM growth
Rathbones’ core revenue is recurring management fees tied to assets under management. A 10.7% y/y FUMA increase to £120.7bn expands the fee base and supports steady, predictable revenue and margin leverage over time, strengthening long‑term cash generation if flows and markets remain constructive.
Read all positive factors
Rathbones Group PLC (RAT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.73B
Dividend Yield5.79%
Average Volume (3M)102.84K
Price to Earnings (P/E)13.8
Beta (1Y)1.29
Revenue Growth5.39%
EPS Growth85.13%
CountryUK
Employees3,300
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)1.24
Shares Outstanding90,489,845
10 Day Avg. Volume139,085
30 Day Avg. Volume102,842
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)1.49
Price to Sales (P/S)1.94
P/FCF Ratio10.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,695.00Price Target Upside1.62% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)1.75
Revenue Forecast (FY)£954.99M
Rathbones Group PLC Business Overview & Revenue Model
Company Description
Rathbones Group Plc specializes in providing personalized investment and wealth management services through its subsidiaries. These services are extended to a diverse clientele, including private individuals, charitable organizations, trusts, and ...
How the Company Makes Money
Rathbones Group PLC primarily makes money by charging fees for managing client assets and providing related wealth and investment services. The group’s main revenue stream is recurring management fees (often calculated as a percentage of assets un...
Rathbones Group PLC Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 04, 2027
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial picture: strong FUMA growth, double‑digit underlying profit and EPS increases, improving Wealth Management flows, successful synergy delivery, robust capital position, and measurable progress on strategy, digital adoption, brand and client experience. Major challenges are centered on regulatory remediation costs (Skilled Person Review), H1 group net outflows (partly driven by Q1), continued pressure in the active asset management business, and a headwind to margins from the cessation of cash fees. Management has quantified the regulatory cost exposure, completed buybacks, and revised margin guidance (Q4 target lowered from 30.0% to 28.7%), and describes remediation as manageable and largely insured. Overall, positive operational momentum and financial improvement outweigh the notable but contained risks and headwinds.Positive Updates
Strong FUMA Growth
Funds under management and advice (FUMA) reached GBP 120.7bn at 30 June, up 10.7% year‑on‑year and up 4.4% (GBP 5.1bn) since the start of 2026.
Negative Updates
Group Net Outflows
Group reported net outflows of GBP 0.9bn for H1 (vs GBP 1.0bn in H1 2025). Q1 net outflows were GBP 845m, though Q2 improved materially.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong FUMA Growth
Funds under management and advice (FUMA) reached GBP 120.7bn at 30 June, up 10.7% year‑on‑year and up 4.4% (GBP 5.1bn) since the start of 2026.
Read all positive updates
Company Guidance
Guidance from the call stressed continued growth but a revised margin target: FUMA was £120.7bn (+10.7% y/y; +£5.1bn YTD), operating income £487.5m (+8.6%), underlying PBT £123.2m (+14.4%) with an operating margin of 25.3% (+1.3pp), statutory PBT £72.1m (+15.7%), underlying EPS £0.885 (+17.1%) and an interim dividend of £0.32 (+3.2%); H1 group net outflows were £0.9bn (Q1 £845m outflow; Q2 nearly neutral at £31m outflow; Wealth Management Q2 inflows £450m and underlying WM H1 inflow c.£0.5bn after exclusions). Management reiterated £76m of synergy delivery (adding ~£17m to H1 PBT), confirmed the Skilled Person Review incremental cost of ~£60m (portion recognized/committed) and remediation of ~4,700 EDD clients by year‑end; Salesforce is due end‑Q3 reducing tech costs by ~£6m in H2 (benefiting Q4). The cessation of cash charges will cut the Wealth fee margin by ~1.5bps and is a ~1.3pp headwind to H2 margin, so the Q4 margin target was revised from 30% to 28.7% (subject to c.3% FUMA growth, stable inflation and market rates); capital remains strong with a total capital ratio of 18.3% at 30 June and a £166m surplus after completing buybacks of >3.5m shares (~3.3%).Rathbones Group PLC Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.07B | 1.03B | 895.90M | 676.20M | 511.38M | 468.82M |
| Gross Profit | 895.10M | 862.00M | 828.50M | 646.50M | 426.21M | 435.20M |
| EBITDA | 296.20M | 293.20M | 268.50M | 149.90M | 117.79M | 126.31M |
| Net Income | 119.60M | 112.30M | 65.50M | 37.50M | 49.00M | 75.23M |
Balance Sheet | ||||||
| Total Assets | 5.51B | 5.22B | 4.29B | 4.22B | 3.47B | 3.29B |
| Cash, Cash Equivalents and Short-Term Investments | 1.48B | 1.50B | 1.17B | 1.20M | 1.48B | 1.53B |
| Total Debt | 133.00M | 198.10M | 88.50M | 127.20M | 91.41M | 97.08M |
| Total Liabilities | 4.18B | 3.87B | 2.93B | 2.87B | 2.84B | 2.67B |
| Stockholders Equity | 1.32B | 1.35B | 1.36B | 1.35B | 634.83M | 623.28M |
Cash Flow | ||||||
| Free Cash Flow | 294.00M | 187.40M | 237.00M | -100.10M | 84.17M | 41.03M |
| Operating Cash Flow | 304.90M | 196.20M | 293.60M | -89.40M | 97.30M | 53.73M |
| Investing Cash Flow | -67.80M | -670.20M | -38.00M | -79.90M | -293.71M | -244.44M |
| Financing Cash Flow | -512.20M | 783.50M | -99.30M | -100.50M | 115.53M | -212.39M |
Rathbones Group PLC Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £2.03B | 15.50 | 4.51% | 2.02% | 68.95% | 109.67% | |
77 Outperform | £2.41B | 20.60 | 57.35% | 2.47% | 19.27% | 40.49% | |
77 Outperform | £1.31B | 20.68 | 27.60% | 3.12% | 37.79% | 29.03% | |
74 Outperform | £2.62B | 22.51 | 8.35% | 3.23% | 191.46% | ― | |
72 Outperform | £1.49B | 12.92 | 14.60% | 8.21% | -22.64% | 58.92% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | £1.73B | 13.79 | 8.95% | 5.94% | 5.39% | 85.13% |
* Financial Sector Average
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Rathbones Group PLC Corporate Events
Regulatory Filings and Compliance
Rathbones updates market on total voting rights and share capital structure
Neutral
Aug 3, 2026
Rathbones Group PLC has reported that, as of 3 August 2026, its issued share capital comprises 90,489,844 ordinary shares of 5 pence each with full voting rights and 17,481,868 convertible non-voting ordinary shares of 5 pence each. The company ho...
Business Operations and StrategyExecutive/Board Changes
Rathbones bolsters board with appointment of veteran asset management executive
Positive
Jul 30, 2026
Rathbones Group PLC has strengthened its board with the appointment of experienced asset management executive Michelle Scrimgeour as an Independent Non-Executive Director, effective 1 October 2026, subject to regulatory approval. She will join the...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresRegulatory Filings and Compliance
Rathbones lifts profits and assets but trims margin outlook after FCA review
Positive
Jul 29, 2026
Rathbones Group PLC reported a strong first half of 2026, with funds under management and administration rising 10.7% year on year to £120.7 billion and underlying profit before tax up 14.4% to £123.2 million. Wealth Management returned ...
Stock BuybackRegulatory Filings and Compliance
Rathbones Completes £20m Share Buyback, Updates Voting Capital
Positive
Jul 13, 2026
Rathbones Group PLC has completed its previously announced share buyback programme of up to £20 million, purchasing 939,315 ordinary shares at an average price of £16.22 for cancellation. The buyback is linked to maintaining InvestecR...
Business Operations and StrategyStock Buyback
Rathbones Cancels Further Shares as Buyback Programme Progresses
Positive
Jul 13, 2026
Rathbones Group PLC has continued to execute its previously announced share buyback programme, repurchasing and cancelling 234,822 ordinary shares between 6 and 10 July 2026 through Merrill Lynch International. These transactions, carried out at a...
Regulatory Filings and Compliance
Rathbones Executives Acquire Shares Under Incentive Plan
Positive
Jul 8, 2026
Rathbones Group PLC has disclosed share acquisitions by its top executives under an Inland Revenue Approved Share Incentive Plan, in line with UK market abuse regulation reporting requirements. The Group Chief Executive Officer, Jonathan Sorrell, ...
Business Operations and StrategyStock Buyback
Rathbones Reduces Share Capital Through Ongoing Buyback Programme
Positive
Jul 6, 2026
Rathbones Group PLC has continued executing its share buyback programme launched on 17 June 2026, purchasing and cancelling 297,510 ordinary shares between 29 June and 3 July on the London Stock Exchange via Merrill Lynch International. This bring...
Regulatory Filings and Compliance
Rathbones updates market on total voting rights and share capital structure
Neutral
Jul 3, 2026
Rathbones Group PLC has updated the market on its total voting rights, confirming that as of 2 July 2026 the company has 90,713,495 ordinary shares of 5 pence each in issue with full voting rights and 17,481,868 convertible non-voting ordinary sha...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Rathbones advances buyback as voting share count falls
Positive
Jun 29, 2026
Rathbones Group PLC has continued executing its recently launched share buyback programme, repurchasing and cancelling 248,376 ordinary shares over the period 22–26 June 2026 at a volume-weighted average price of around 1,617 pence per share...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Rathbones cancels 158,607 shares under new buyback programme
Positive
Jun 22, 2026
Rathbones Group PLC has repurchased 158,607 ordinary shares for cancellation under its recently launched share buyback programme, with purchases executed on the London Stock Exchange and related venues at a volume-weighted average price of about 1...
Regulatory Filings and Compliance
Rathbones Director Buys Shares in Market-Notified Transaction
Positive
Jun 19, 2026
Rathbones Group PLC has disclosed that non-executive director Iain Cummings purchased 800 ordinary shares of 5 pence each in the company on 19 June 2026. The transaction, executed on the London Stock Exchange at a price of £16.22 per share, r...
Other
Rathbones Non-Executive Director Iain Cummings Buys Shares
Positive
Jun 18, 2026
Rathbones Group PLC disclosed that non-executive director Iain Cummings has purchased 1,282 ordinary shares of 5 pence each in the company at a price of £16.21 per share on 18 June 2026. The transaction, conducted on the London Stock Exchange...
Regulatory Filings and Compliance
Rathbones Non-Executive Director Purchases Shares in Market-Notified Deal
Positive
Jun 17, 2026
Rathbones Group PLC has disclosed a share transaction by non-executive director Terri Duhon, in line with requirements under the UK’s implementation of the EU Market Abuse Regulation. The director purchased 500 ordinary shares of 5p each in ...
Stock Buyback
Rathbones Launches £20 Million Share Buyback to Cut Share Capital
Positive
Jun 17, 2026
Rathbones Group PLC has launched a share buyback programme to repurchase up to £20 million of its ordinary shares, following prior approval granted at its May 2026 annual general meeting. Merrill Lynch International has been appointed to inde...
Other
Rathbones Chair and CEO Increase Stakes with New Share Purchases
Positive
Jun 16, 2026
Rathbones Group PLC has disclosed share purchases by its chair, Clive Bannister, and its group chief executive officer, Jonathan Sorrell, in line with UK market abuse regulations. Bannister acquired 15,300 ordinary shares at £16.38 each on 16...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresRegulatory Filings and Compliance
Rathbones pauses some client inflows and absorbs £60m costs after FCA-driven review
Negative
Jun 16, 2026
Rathbones Group has launched a Skilled Person Review-led remediation programme after an FCA-engaged assessment found shortcomings in how its UK wealth management arm has implemented Consumer Duty and in aspects of compliance, oversight and assuran...
Business Operations and StrategyExecutive/Board Changes
Rathbones Strengthens Board With Two New Independent Non-Executive Directors
Positive
Jun 16, 2026
Rathbones Group PLC has appointed Angela Seymour-Jackson and Kathryn Purves as independent non-executive directors to the group and its main subsidiary, effective 1 October 2026 and 1 July 2026 respectively, subject to regulatory approval. Both wi...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresRegulatory Filings and Compliance
Rathbones pauses some EDD client inflows as FCA review drives £60m overhaul
Negative
Jun 16, 2026
Rathbones Group has completed a Skilled Person Review with the UK Financial Conduct Authority that highlighted weaknesses in how Consumer Duty has been embedded in its UK wealth management arm, alongside gaps in compliance, oversight and assurance...
Executive/Board Changes
Rathbones CEO and CFO Increase Stakes via Share Incentive Plan
Positive
Jun 5, 2026
Rathbones Group PLC has disclosed that its Group Chief Executive Officer, Jonathan Sorrell, and Group Chief Financial Officer, Iain Hooley, have each acquired ordinary shares under the company’s Inland Revenue Approved Share Incentive Plan. ...
Regulatory Filings and Compliance
Rathbones Confirms Total Voting Rights and Share Capital Structure
Neutral
Jun 1, 2026
Rathbones Group PLC has confirmed that, as of 31 May 2026, its issued share capital comprises 91,376,799 ordinary shares with voting rights and 17,481,868 convertible non-voting ordinary shares, with no shares held in treasury. This disclosure set...
DividendsRegulatory Filings and Compliance
Rathbones Director Reinvests Dividend in Additional Company Shares
Positive
May 20, 2026
Rathbones Group PLC has disclosed that non-executive director Iain Cummings acquired 97 ordinary shares in the company through the reinvestment of the group’s 2025 final dividend. The transaction, executed on 18 May 2026 at a price of £...
DividendsRegulatory Filings and Compliance
Rathbones discloses CEO and CFO dividend reinvestment into company shares
Neutral
May 14, 2026
Rathbones Group PLC has disclosed routine share transactions by its top executives under regulatory market abuse rules, detailing the reinvestment of the company’s 2025 final dividend into ordinary shares via an Inland Revenue Approved Share...
Regulatory Filings and Compliance
Rathbones Executives Increase Holdings Through Share Incentive Plan
Neutral
May 8, 2026
Rathbones Group PLC has reported routine share transactions by senior executives under its Inland Revenue Approved Share Incentive Plan, highlighting continued participation in the company’s equity schemes. The group’s CEO, Jonathan So...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Rathbones AGM Backs Dividend and Board, But Rejects Pre-Emption Waivers
Neutral
May 7, 2026
Rathbones Group PLC reported that shareholders approved the majority of resolutions at its 55th annual general meeting, including the adoption of 2025 financial statements, the directors’ remuneration report, a 68p final dividend, all direct...
Business Operations and StrategyFinancial Disclosures
Rathbones lifts Q1 income despite continued client outflows
Neutral
May 7, 2026
Rathbones Group PLC reported a 9.4% rise in first-quarter operating income to £240.7 million, driven by higher fees, commissions and net interest income amid improved market levels compared with a year earlier. Funds under management and admi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.