Rathbone Brothers Plc : Miscellaneous <Origin Href="QuoteRef">RAT.L</Origin>

RathbonesAnnouncement

07/01/2016 07:10

Rathbones to relocate London head office 
 Rathbone Brothers Plc ("Rathbones") announces that it has exchanged contracts
for a 17 year lease on 75,000 sq ft of office space at 8 Finsbury Circus. This
will secure sufficient capacity in London to meet its longer term growth
plans. It is expected that the business will move from Rathbones' current
44,000 sq ft premises at 1 Curzon Street in the first quarter of 2017.  
 
 The move will result in exceptional accounting charges of £0.4 million in
2015 and up to £9.5 million in 2016. These charges reflect the rental costs
of 8 Finsbury Circus after completion, as well as provisions for dilapidations
and accelerated depreciation charges for 1 Curzon Street. Accounting standards
require the commercial benefits of any rent free period to be spread over the
term of the lease, rather than offsetting double running costs directly. 
 
 A non-cash charge will also be incurred when our current Curzon Street
premises are vacated, representing the discounted cost of the remaining lease
obligations in Curzon Street (which end in 2023) net of expected income from
subletting. This exceptional charge is inherently subjective, but based on
current assumptions, could amount to approximately £8.0 million. 
 
 Thereafter, ongoing net running costs for the new and much larger premises in
Finsbury Circus are expected to be similar to the cost of continuing to occupy
the Curzon Street premises. 
 
 Philip Howell, Chief Executive of Rathbone Brothers Plc, said: 
 
 "Rathbones has grown very successfully in London in recent years. In the 4
year period that we have been at Curzon Street, London FUM has grown from
£8.9 billion to £16.5 billion as at 31 December 2015. This has been the key
driver in us needing more space somewhat earlier than we originally
anticipated. 
 
 "We believe that the high quality new development at 8 Finsbury Circus
represents the best single site solution that not only provides a welcoming
environment for our clients, but also creates the capacity we need to support
our longer term growth plans. We have also placed particular importance on
ensuring that all of our London employees continue to work together under one
roof without adding to our future operating costs." 
 
 For further information contact: 
 
  Rathbone Brothers Plc Tel: 020 7399 0000 email: shelly.chadda@rathbones.com   Philip Howell, Chief Executive Paul Stockton, Finance Director    Camarco Tel: 020 3757 4984 email: ed.gascoigne-pees@camarco.co.uk   Ed Gascoigne-Pees   
  Shelly Chadda, Investor Relations Manager                                                                                                                                                                                                
 Rathbone Brothers Plc 
 
 Rathbone Brothers Plc ("Rathbones"), through its subsidiaries, is a leading
provider of high-quality, personalised investment and wealth management
services for private clients, charities and trustees. This includes
discretionary investment management, unit trusts, tax planning, trust and
company management, pension advice and banking services. 
 
 Rathbones has over 1,000 staff in 15 UK locations and Jersey, and currently
has its headquarters in Curzon Street, London. 
 
 rathbones.com 
 

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 The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein. 
 Source: Rathbone Brothers Plc via Globenewswire 
 HUG#1977121