Quilter share price rockets after seeing adjusted profit and AuMA rise
Quilter delivered a slight increase in assets under management and administration (AuMA) in the first half of the year, helping the money manager record a rise in adjusted pretax profit.
AuMA climbed by two per cent in the first six months of the year to hit £101.7bn despite the broader instability in the rest of the market.
This came as it recorded core net inflows in the first half of £700m, reflecting a strong performance from the Quilter channel of its high net worth and affluent channels. There was a more muted performance in the direct channels of both segments.
Flows in the second quarter across all channels were up five per cent year-on-year despite a nine per cent decline in the overall market. Overall revenue hit £312m, up from £303m the year before.
Its shares were trading over 12 per cent on Tuesday.
Adjusted pretax profit increased 25 per cent as a result of a small uptick in revenue, tighter cost controls and the interest income generated from its cash reserves.
The firm noted it expects to deliver on its £45m round of cost savings by the end of this year, a year earlier than planned, while targeting a further £50m in cost reductions by the end of 2025.
Quilter also boosted its dividend to 1.5p per share, up from 1.2p last year.
Steven Levin, chief executive, said: “We have delivered a strong improvement in first half profitability, pleasing flow outcomes in the Quilter channel and improved our market share of new advised platform flows.
“Our business model is fully aligned with the principles of the Consumer Duty regime and my focus is on doing more for our customers to improve business momentum in the near-term, and deliver faster growth and higher returns to shareholders in the longer-term,” he continued.