Underlying profit before tax increased 79.1 per cent to £227.6 million, up from £127.1 million the previous year, the firm said in a statement. Funds under management and advice (FuMA) reached £109.2 billion, up from £105.3 billion in 2023, including £43.0 billion from IW&I, the firm added.

“2024 is the first full financial year following the combination with IW&I. The increase in operating income, profit and earnings per share reported this year reflects the benefits of the combination and the extent to which our delivery of the related synergies have exceeded the targets we set for 2024,” Paul Stockton, group chief executive, said. “The comparative figures for 2023 include three months of IW&I's contribution from 1 October 2023, reflecting the timing of the completion of the combination.” 

The firm said it has made progress during the year in its ambition to grow its underlying operating margin, which has increased to 25.4 per cent from 22.3 per cent in 2023. 

It has delivered cost and revenue synergies, ahead of its first year £15 million target, with a run-rate synergy realisation of £30.1 million at the end of 2024. This was largely due to organisational changes and its property consolidation programme being secured ahead of schedule. 

Growth
Although much of the firm’s recent focus has been on ensuring that the benefits of the partnership are realised, it has also taken steps towards improving organic growth rates. It is strengthening its marketing and distribution capability and delivering more advice-led conversations whilst working flexibly to provide investment-only services to third-party advisors. It is aiming to improve client choice by responding to changing demands, leveraging its partner relationships and growing Rathbones Asset Management.

The firm said it is making progress towards delivering an underlying operating margin of 30 per cent from September 2026, notwithstanding the additional headwinds that have arisen since it set out this target.

“We expect the improvement in the underlying operating margin to arise mostly during 2026, with a more modest improvement in 2025. This principally reflects the timing of further synergy benefits, which will be weighted towards the second half of the 2025 financial year, when the cost savings, which are linked to the migration to a single operating platform, will materialise and we work towards IW&I ceasing to run as a separate, regulated entity,” the firm said. “Performance in 2025 will also reflect the increase in net interest costs (NIC) and a full year of the 2024 salary reviews, which were undertaken in the higher inflationary environment,” the firm continued.

“We also expect to see a flatter seasonal spike in transaction-based commission income in March 2025 as a result of the additional activity that arose on client portfolios ahead of the 2024 Autumn Budget...We expect to see growth in advice revenues in 2025 as a result of increased advisor capacity following completion of the Saunderson House migration and our continuing focus on advice, along with increased demand following the taxation changes announced in the 2024 Autumn Budget,” the firm added.  

In July, the firm announced an interim dividend of 30p. Given the strength of its balance sheet and its confidence in the long-term future of the business, the board has recommended a final dividend of 63.0p per share for 2024, from 24.0p in 2023. This brings the total dividend for the year to 93.0p from 87.0p in 2023, representing a 6.9 per cent increase compared with 2023. The dividend will be paid on 13 May 2025, subject to shareholder approval at its 2025 Annual General Meeting on 8 May 2025.