Quilter sees double-digit growth in profits, AuMA

(Sharecast News) - Wealth management outfit Quilter has lifted its full-year dividend by 13% after a strong end to 2024, as the company reported double-digit profit growth and a big increase in assets under management and administration (AuMA). AuMA rose 12% to £119.4bn, with net inflows of £4.8bn, helped by what it called "supportive markets".

Chief executive Steven Levin said 2024 was an "excellent year in terms of net inflows, revenue momentum, cost discipline and profit growth".

Revenues were up 7% at £670m, reflecting higher management fee revenue on higher asset levels combined with increased investment revenue generated on shareholder funds.

Adjusted pre-tax profit was 17% higher at £196m, helped by a two-percentage point increase in the operating margin to 29%.

The bottom line was also helped by Quilter's "simplification programme" which delivered £35m of the targeted £50m of savings, with the remainder expected to be achieved by the end of this year.

The company proposed a full-year dividend of 5.9p per share, up from 5.2p in 2023.

Meanwhile, Quilter's so-called "skilled person review", which was kicked off last year after concerns raised by the FCA, is still ongoing but is expected to be completed during the second quarter. The company has now put aside £76m as a "customer remediation exercise provision" to cover potential redress for clients that did not receive ongoing advice.