Quilter sees 25% rise in full-year profits

(Sharecast News) - Wealth management company Quilter saw profits rise by a quarter in 2023, helped by a five percentage-point increase in operating margins, after strong investment returns during the year.

Adjusted pre-tax profitd came in at £167m for last year, up from £134m in 2022, helped by a 3% fall in costs to £458m and a jump in the operating margin from 22% to 27%.

Margins came in ahead of the company's 2025 target, and the company is now targeting a medium-term goal of 30%.

Assets under management and administration increased 7% over the year to £106.7bn, helped by supportive markets into year-end combined with a modest contribution from net flows.

Revenues rose 3% to £625m, supported by interest revenue generated on corporate cash balances.

"2023 was a year of strong delivery. We wrote a higher level of new business and delivered record profitability through higher revenues and 3% lower costs," said chief executive Steven Levin.

"Our Affluent segment is delivering strong growth while our High Net Worth segment is investing in growth which will be realised over the next few years. The structural need to save for retirement combined with our growth plans and focus on operational efficiency, supported by a strong balance sheet, means we are well positioned as market conditions improve."

The company proposed a full-year dividend of 5.2p per share, up from 4.5p previously.

Quilter's stock, which started with decent gains in early trading on Wednesday, quickly fell into the red and was down 1.4% at 100.2p by 0834 GMT.