Quilter reports 16% profit jump in first results since listing

Quilter has reported a 16 per cent increase in adjusted profit before tax in its half-year update; the first figures it has published since listing as a standalone business from Old Mutual in June.

Adjusted profit before tax was £110m in the six months to 30 June, up from £95m in H1 2017.

Quilter listed on the London Stock Exchange valued at £2.76bn on 25 June.

Since the listing it has also completed the sale of Richard Buxton’s single-strategy business Old Mutual Global Investors to TA Associates for £583m.

Today’s results show a 2 per cent increase in assets under management and administration from 31 December 2017 to £116.5bn, which the company attributes to net flows of £2.2bn.

Quilter says integrated flows increased 17 per cent to £2.8bn (H1 2017: £2.4bn).

Excluding the Quilter Life Assurance business, the business’s net client cash flow for the period was £3bn, which was down 12 per cent from the first half of 2017.

Net client cash flow for the advice and wealth management arm increased 10 per cent to £2.3bn (H1 2017: £2.1bn).

Net client cash flow for the wealth platforms arm of the business was £1.2bn (H1 2017: £2bn).

Quilter says in the first half of the year 41 per cent – or £1.1bn – of the platform’s gross pensions sales were from defined benefit pension transfers into defined contribution schemes.

The future of Old Mutual: Will a breakup be hard to bear?

According to the results, the restricted arm of Quilter Financial Planning, the new name for Intrinsic, accounted for £1.4bn – or 78 per cent – of Quilter Investors’ net flows and £0.6bn – or 29 per cent – of Quilter Wealth Solutions’ net flows.

Quilter Investors is the new name for Old Mutual Wealth’s multi-asset business and Quilter Wealth Solutions is the new name for the Old Mutual Wealth UK platform.

Quilter says it is “on track and within budget” for its replatforming to FNZ with “thousands of test” having been run.

It expects to “soft launch” the platform either later this year or early in 2019.

The results statement says: “This will be on a limited basis and will be used to verify system functionality in a live environment. This will be followed by a phased controlled migration of our existing book.”

It adds: “Maintaining high-quality delivery is of utmost importance to us and we are preparing detailed migration plans to ensure customers and advisers remain well-supported throughout the transition period.”

Quilter says 12 investment managers in the Quilter Cheviot investment team have resigned since listing, which could lead to “higher than trend” outflows in 12 to 18 months’ time.

Quilter chief executive Paul Feeney says: “We are very much where we expected to be at this stage on the Quilter journey. While short-term market fluctuations and Brexit-induced uncertainty may exacerbate market volatility or temper momentum in near-term flows, we operate in a large and fragmented market that has plenty of growth potential. We are a young company with a 250-year heritage and we’re just getting started.”

Recommended

dublin

Baillie Gifford to set up post-Brexit Dublin base

Baillie Gifford has chosen Dublin as the location for a European subsidiary post-Brexit. The business says it has been exploring various options to allow it to keep serving its European clients once the UK leaves the European Union. The move follows other investment and financial services firms announcing they will set up operations outside the […]

2

Should the tax-free lump sum be separated from pension decisions?

The FCA wants the government to explore ‘decoupling’ the 25 per cent tax-free lump sum from decisions about the remaining pension pot. When trying to solve any problem it is good to consider all your options. Perhaps this is where the FCA is coming from in the final report of its Retirement Outcomes Review. The […]

Investment

Alternative assets: what are they and why invest in them?

Michael Howard, Head of Alternative Investments at Prudential Portfolio Management Group (PPMG), analyses how alternative assets can benefit multi-asset portfolios. As yields have compressed and forward-looking return expectations have fallen in the past few years, investors have sought alternatives to traditional asset classes to supplement their income and boost their total return. Please remember that […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com