Quilter (QLT) H1 2024 earnings summary

Executive summary

• Core net inflows rose 164% to £1.7bn, with adjusted profit before tax up 28% to £97m and operating margin at 29%, exceeding the 2025 target.

• Adjusted diluted EPS increased 21% to 5.2p; interim dividend set at 1.7p, up 13% year-over-year.

• Strategic focus on distribution, digital investment, and efficiency delivered £26m of £50m targeted cost savings.

• Transformation programs in advice, high-net-worth model, and organizational simplification are progressing well.

• Ongoing Advice Evidence Review with FCA; update expected by early 2025.

Financial highlights

• Revenue grew 5% year-on-year to £329m, with all revenue categories increasing and a 45bps revenue margin.

• Operating expenses declined 2% to £232m, supporting margin expansion despite inflation.

• Adjusted profit before tax was £97m (+28% year-over-year); operating margin improved by 5 percentage points to 29%.

• Return on equity improved to 9.6% annualised.

• IFRS profit after tax was £13m, up from £5m, mainly due to market-driven policyholder tax changes.

Outlook and guidance

• FY 2024 targets reaffirmed: net flows at 4–5% of opening AuMA, building towards a 30% operating margin medium-term.

• Second half profit expected to be lower due to higher investment in growth and brand, but full-year costs to be modestly below £490m guidance.

• Platform margin expected to decline by about 1 basis point per year; affluent managed margin trending to mid-30s bps.

• Regulatory and PI costs expected to normalize at £18–£20m annually, or 4–5% of revenues.

• Dividend policy remains at 50–70% pay-out of post-tax, post-interest adjusted profit.