Quilter (QLT) H1 2025 earnings summary

Executive summary

• Profits increased from a strong 2024 base, with adjusted profit before tax up 3% to £100m for H1 2025 and core net inflows surging 160% year-over-year to £4.5bn.

• Operating margin improved to 30%, aligned with medium-term goals, and adjusted diluted EPS rose 4% to 5.4p.

• Interim dividend increased 18% to 2.0p per share, with a payout ratio of 59% and Solvency II ratio at 214% post-dividend.

• Affluent and High Net Worth segments outperformed peers in inflows and growth as a percentage of opening assets.

• Strategic focus on growing distribution, enhancing propositions, and driving efficiency through simplification and transformation programs.

Financial highlights

• Revenue grew 2% to £337m, with net management fees up 5% and operating expenses rising 2% to £237m.

• Adjusted profit before tax rose 3% to £100m; operating margin improved by 1ppt to 30%.

• IFRS profit after tax was £46m, up from £13m in H1 2024.

• High Net Worth profit was £24m (flat or down 4% year-on-year); Affluent profit increased 10% to £79m.

• Average AuMA up 11% to £122.1bn; total AuMA increased 6% since year-end to £126.3bn.

Outlook and guidance

• Second half adjusted profit expected to be broadly equivalent to the first half, as higher costs offset revenue momentum.

• Net flows expected at 4-5% of opening AuMA through the cycle; operating margin targeted around 30% with gradual improvement.

• Cost ceiling for FY 2025 at £500m, with normal inflationary increases expected in 2026 and beyond.

• Medium-term model anticipates steady compounding of earnings at a high single digit to mid-teens rate.

• Review of capital needs and distribution strategy planned after remediation programme implementation.