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

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