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.”



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