Wealth management firm Quilter suffers profit slump
Wealth management firm Quilter suffered a drop in profit last year against a tough market backdrop, and warned this morning that coronavirus could have an “adverse impact” on the company.
The figures
The company reported profit after tax of £146m in 2019 compared to £488m the previous year. Its loss before tax from continuing operations was £21m, down from profit of £66m in 2018.
However, the company said adjusted profit before tax increased one per cent to £235m.
Assets under management increased 13 per cent from £97.7bn to £110.4bn, while gross sales dipped from £14.2bn to £12.3bn.
Net client cash flow was £300m, compared to £4.7bn.
Why it’s interesting
Quilter said it had to contend with “extreme political and economic uncertainty due to Brexit in the UK, and trade and geopolitical concerns more broadly across the globe” during 2019.
During the year the firm acquired Charles Derby Group and Lighthouse Group as it built up its advice business, and said the integration of both companies are “progressing in line with expectations”.
It also sold its Quilter Life Assurance division to Reassure for £425m during the period, and will return £375m to shareholders.
Today Quilter said that the year started well, but the “sharp coronavirus induced market correction beginning in late February has created a level of uncertainty as to the outlook for the remainder of 2020”.
The company also today announced that Cathy Turner and Suresh Kana will stand down from the board at the annual general meeting in May.
What Quilter said
Chief executive Paul Feeney said: “Notwithstanding short term market sentiment, we remain optimistic on the long-term secular opportunity across our markets and Quilter is strategically well positioned to benefit from this.
“Completing the first migration onto our new UK platform in early February was a major milestone for the Group. We are now focussed on delivering the second and final migration to a high quality outcome in the summer. Our new platform will strengthen the cohesion between our different business capabilities and be a catalyst for faster growth.”