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Rothschild Wealth Management UK starts to fly as margins, profits and revenues surge in 2017
15/05/2018 , Ian Orton

Rothschild Wealth Management UK (RWMUK), the UK wealth management arm of Rothschild & Co., recorded pre-tax profits and revenues of £7.94 million and £40.01 million respectively for the nine months to December 2017, according to its annual report and accounts which have just been deposited at Companies House.

RWMUK followed the decision of parent Rothschild & Co. to change its financial year-end to 31 December 2017 instead of 31 March 2018. And this prevents a direct comparison with the previous year.

Nonetheless the nine month performance compares very favourably with that recorded for the twelve months to 31 March 2017.

The £40.01 million of revenues recorded for the nine months to the end of December 2017 is just £3.58 million lower than the £43.59 million recorded for the twelve months to 31 March 2017.

Moreover the nine month pre-tax profit figure of £7.94 million is £5.83 million greater than the £2.08 million recorded in the previous set of full year results.

This means that the pre-tax profit or income margin increased from the 4.92 percent recorded for the year to 31 March 2017 to 19.84 percent for the nine months to December 2017.          

RWMUK attributed what appears to be strong revenue growth to a £968 million increase in assets under management over the nine month period from the end of March 2017 to take the total to £8.40 billion at the year end.

“It has been encouraging to see that the increase has come from a healthy mix of positive net new assets and also good investment performance,” said RWMUK’s strategic report.

Virtually all of RWMUK’s revenues emanate from management and brokerage fees. These accounted for £37.51 million of the £40.01 million of total revenue for the nine months to 31 December 2017. Commission receivable and other income contributed another £2.49 million.

Turning to costs the two different reporting periods once again make it difficult to make direct comparisons.

But it does seem that RWMUK may have exerted considerable cost discipline during 2017. Administrative costs came in at £32.01 million for the nine months compared to £41.44 million for the twelve months to March 2017.

Furthermore staff numbers increased from 118 to 127.

Going forward RWMUK said it had been monitoring the Brexit discussions and will considering whether any strategic changes will have to be made especially in relation to its Milan branch.

 

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