Wealth management growth drives robust first half for Quilter

(Sharecast News) - Quilter reported a robust set of first-half results on Wednesday, driven by strong net inflows and growth across its wealth management platform, with both its Affluent and High Net Worth segments outperforming market peers. The FTSE 250 wealth manager posted adjusted profit before tax of £100m for the six months to 30 June, a 3% increase from £97m a year earlier, while revenues rose 2% to £337m.

Operating margin improved by one percentage point to 30%.

IFRS profit after tax rose sharply to £46m from £13m, and adjusted diluted earnings per share increased by 4% to 5.4p.

Total assets under management and administration rose by 6% since the end of 2024 to £126.3bn, supported by net inflows of £4.3bn and positive market performance.

Platform assets under administration climbed 8% to £92bn, with platform net inflows of £4.2bn - up 92% year-on-year - representing 10% of opening assets on an annualised basis.

"Flow momentum remains excellent with our Affluent and High Net Worth segments both outperforming their market peers," said chief executive Steven Levin.

"Our business has built on the momentum of the last two years, is in great shape and is continuing to deliver on the growth opportunities ahead."

The WealthSelect managed portfolio service saw assets rise 14% to £21bn, while the High Net Worth segment delivered improved net inflows at 3% annualised of opening assets.

Across the business, core net inflows of £4.5bn represented 8% of opening assets, up from 3% in the first half of 2024.

Quilter added a net 14 restricted financial planners to its adviser network, taking the total to 1,454.

It said it was also continuing investment in its Advice Transformation Programme, designed to improve adviser productivity and client servicing.

The company declared an interim dividend of 2p per share, up 18% from the prior year.

Its Solvency II ratio stood at 214% after payment of the dividend, down slightly from 219% at year-end.

Quilter also updated the market on its ongoing advice review with the Financial Conduct Authority.

A skilled person report had been submitted, with discussions now focusing on the implementation of a potential remediation programme.

The group said it had reduced its provision for the review from £76m to £70m, stating that the revised sum "remains appropriate".

Quilter said its simplification programme had achieved £43m of annualised cost savings, with the remaining £7m of its £50m target expected to be delivered by year-end.

However, the company said higher second-half costs linked to brand and business investment would likely offset the benefit from higher revenues, with adjusted profit expected to be broadly flat in the second half.

At 0937 BST, shares in Quilter were up 0.55% at 164.29p.

Reporting by Josh White for Sharecast.com.