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Rathbones Group PLC (RAT) AI Stock Analysis
Rathbones Group PLC
(LSE:RAT)
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.
Rathbones Group PLC (RAT) vs. iShares MSCI United Kingdom ETF (EWC)
- Market Cap
- GBP 1.77B
- Dividend Yield
- 5.77%
- Average Volume (3M)
- 122.27K
- Price to Earnings (P/E)
- 14.0
- Beta (1Y)
- 1.17
- Revenue Growth
- 5.39%
- EPS Growth
- 85.13%
- Country
- UK
- Employees
- 3,300
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Asset Management
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 pro...
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 under...
Rathbones Group PLC Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Strong profitability and revenue scale with a conservative balance sheet (low leverage, improving ROE). The key drag is cash-flow volatility, including a sharp YoY decline in free cash flow and prior-year negative cash flow, which lowers confidence in consistency across cycles.
Income Statement
78PositiveBalance Sheet
82Very PositiveCash Flow
58Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.07B | 1.03B | 1.01B | 677.90M | 511.38M | 468.82M |
| Gross Profit | 894.70M | 861.60M | 834.80M | 563.20M | 414.02M | 377.20M |
| EBITDA | 296.40M | 293.20M | 263.90M | 177.20M | 127.07M | 130.88M |
| Net Income | 119.60M | 112.30M | 65.50M | 37.50M | 48.98M | 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
Overall Rating
GB:ASHM76Outperform
GB:CLDN75Outperform
GB:AJB74Outperform
GB:QLT73.85Outperform
GB:IHP69Neutral- GB:RAT67Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| GB:ASHM | 76Outperform | GBP 1.48B | 13.84 | 13.19% | 7.53% | 2.50% | 27.89% |
| GB:CLDN | 75Outperform | GBP 1.90B | 14.72 | 4.51% | 2.04% | 68.95% | 109.67% |
| GB:AJB | 74Outperform | GBP 2.28B | 19.37 | 57.35% | 2.54% | 19.27% | 40.49% |
| GB:QLT | 74Outperform | GBP 2.40B | 20.86 | 8.39% | 3.48% | 191.46% | ― |
| GB:IHP | 69Neutral | GBP 1.25B | 19.74 | 27.60% | 3.13% | 37.79% | 29.03% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| GB:RAT | 67Neutral | GBP 1.77B | 13.97 | 8.95% | 5.77% | 5.39% | 85.13% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GB:RAT | Rathbones Group PLC | 1732.00 | 19.54 | 1.14% | |
| GB:ASHM | Ashmore Group Plc | 224.40 | 50.81 | 29.27% | |
| GB:AJB | AJ BELL | 581.00 | 55.02 | 10.46% | |
| GB:QLT | Quilter Plc | 183.80 | 6.00 | 3.38% | |
| GB:CLDN | Caledonia Investments Plc | 376.50 | 2.20 | 0.59% | |
| GB:IHP | IntegraFin Holdings PLC | 377.00 | 22.57 | 6.37% |
Rathbones Group PLC Corporate Events
Rathbones updates market on total voting rights and share capital structure
NeutralRathbones 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 holds...
Rathbones bolsters board with appointment of veteran asset management executive
PositiveRathbones 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 Ri...
Rathbones lifts profits and assets but trims margin outlook after FCA review
PositiveRathbones 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 to...
Rathbones Completes £20m Share Buyback, Updates Voting Capital
PositiveRathbones 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 Investec’...
Rathbones Cancels Further Shares as Buyback Programme Progresses
PositiveRathbones 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 vo...
Rathbones Executives Acquire Shares Under Incentive Plan
PositiveRathbones 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, acq...
Rathbones Reduces Share Capital Through Ongoing Buyback Programme
PositiveRathbones 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 brings t...
Rathbones updates market on total voting rights and share capital structure
NeutralRathbones 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 shares...
Rathbones advances buyback as voting share count falls
PositiveRathbones 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. T...
Rathbones cancels 158,607 shares under new buyback programme
PositiveRathbones 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 1,61...
Rathbones Director Buys Shares in Market-Notified Transaction
PositiveRathbones 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, refl...
Rathbones Non-Executive Director Iain Cummings Buys Shares
PositiveRathbones 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, r...
Rathbones Non-Executive Director Purchases Shares in Market-Notified Deal
PositiveRathbones 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 the...
Rathbones Launches £20 Million Share Buyback to Cut Share Capital
PositiveRathbones 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 indepen...
Rathbones Chair and CEO Increase Stakes with New Share Purchases
PositiveRathbones 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 Ju...
Rathbones pauses some client inflows and absorbs £60m costs after FCA-driven review
NegativeRathbones 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 assurance....
Rathbones Strengthens Board With Two New Independent Non-Executive Directors
PositiveRathbones 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 will...
Rathbones pauses some EDD client inflows as FCA review drives £60m overhaul
NegativeRathbones 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. I...
Rathbones CEO and CFO Increase Stakes via Share Incentive Plan
PositiveRathbones 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. The...
Rathbones Confirms Total Voting Rights and Share Capital Structure
NeutralRathbones 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 sets t...
Rathbones Director Reinvests Dividend in Additional Company Shares
PositiveRathbones 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 £19....
Rathbones discloses CEO and CFO dividend reinvestment into company shares
NeutralRathbones 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 In...
Rathbones Executives Increase Holdings Through Share Incentive Plan
NeutralRathbones 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 Sorre...
Rathbones AGM Backs Dividend and Board, But Rejects Pre-Emption Waivers
NeutralRathbones 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 director...
Rathbones lifts Q1 income despite continued client outflows
NeutralRathbones 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 adminis...
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.
Date of analysis: Aug 03, 2026