Wealth management company Quilter has reported a 28% rise in profit at the halfway stage of the year reflecting strong channel flows and progress in delivering its efficiency initiatives.
The group reported a 7% rise in assets under management to £113.8bn in the six months ended June compared with the six months ended December. The increase was driven by total reported net inflows of £1.5bn and positive market movements of £5.6bn, it said in a statement on Wednesday,
Core net inflows totalled £1.7bn, an increase of 164%, which reflected continued good performance from the Quilter channel in both high net worth and affluent segments and significantly improved IFA (independent financial adviser) channel flows onto the Quilter platform.
Gross flows were 35% higher than the prior period at £7.4bn, supported by strong Quilter Channel flows and an improved market share from IFA firms which led to higher flows onto the platform.
Adjusted profit before tax increased by 28% to £97m, delivering an operating margin of 29%, an increase of five percentage points. Increased interest rates which supported investment returns on shareholder cash, supportive markets that increased average AUM, improved net inflows and strong cost management through its “simplification programme”, all contributed to this outcome.
Adjusted diluted earnings per share increased 21% to 5.2p.
The group reported its cost savings through its simplification programme were on track with £26m of the £50m target achieved on a run rate basis at end-June.
“We delivered a strong performance in the first half of 2024, combining record adjusted profit, consistently strong Quilter channel flows, significantly increased Platform IFA flows, and good progress on delivering our efficiency initiatives. Our work to transform Quilter is delivering tangible results, but we have more to do to reach the ambitious goals we have set for ourselves,” CEO Steven Levin said.
The group declared an interim dividend of 1.7p per share.
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