Latest news with #StevenLevin
IOL News
3 days ago
- Business
- IOL News
Quilter anticipates steady second half following strong first half performance
UK-based Quilter raised its interim dividend 18% to 2 pence. Adjusted diluted earnings per share for the six months to June 30 came to 5.4 pence, up 4% from 5.2 pence. Image: Timothy Bernard/African News Agency (ANA) Quilter, the UK wealth manager with listings in London and on the JSE, increased first half profit by 3% to £100 million and anticipates the second half result to be much in line due to stepped up brand spend and business investment plans. The interim dividend was raised 18% to 2 pence from 17 pence at the same time last year. Adjusted diluted earnings per share came to 5.4 pence, up 4% from 5.2 pence. 'We have delivered strong flow momentum across the business with core net inflows up 160% to £4.5 billion,' CEO Steven Levin said in a statement. The company reported an operating margin of 30% despite lower interest rates reducing investment income on shareholders' funds. The company's Affluent business segment saw net inflows of 9% of opening assets (H1 2024: 5%), with the Platform flows maintaining strong momentum from the second half of 2024, with improved net promoter scores as well as winning awards for service. First half Platform net inflows were up 92% to £4.2bn. The High Net Worth segment saw net inflows to 3% of opening assets. New inflows were stable at £1.5bn, with an easing of outflows leading to a much better performance at the net level of £464m (up from £107m). A £76m provision was reduced to £70m after initial conversations with the UK financial services regulator about the Skilled Person Review of advice by appointed representative firms in the Quilter Financial Planning network. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Levin said once the ongoing advice remediation program was confirmed with the regulator, a review of capital needs would be undertaken at Quilter, to consider whether it has excess capital and if the current distribution strategy is appropriate. He said the group was approaching the end of its second 'Simplification' program, which by the end of June had delivered £43m of cost savings, and which were expected to deliver the remainder of the £50m target by end 2025. Some 1 450 Quilter advisers wrote around £2.5bn of new business in the first half, broadly similar to 2024, and investments were being made to enhance client relationships with integrated support tools. The Advice Transformation program, to be implemented over the next couple of years, would also allow advisers to service a larger number of clients under a range of service and charging models. The Advice Guidance Boundary Review regulatory changes, which introduce 'Targeted Support' in the UK retail financial services market, should favour integrated firms like Quilter, which can use scale efficiencies in platform and investment solutions to deliver a targeted support proposition for clients. 'The acquisition of NuWealth last year allows us to accelerate development of a targeted support proposition for self-directed investors,' said Levin. The High Net Worth business was planned to evolve from being largely investment-driven towards being recognised as a leading integrated wealth management business.
Yahoo
06-03-2025
- Business
- Yahoo
Quilter PLC (QUILF) (Q4 2024) Earnings Call Highlights: Strong Financial Performance Amidst ...
Adjusted Profit: Increased 17% to GBP196 million. Operating Margin: Achieved 29%, surpassing the 25% target for 2025. Core Net Flows: Increased to over GBP5 billion. Earnings Per Share (EPS): Rose 13% to 10.6p. Dividend: Proposed at 5.9p, a 13% increase. Revenue Growth: 7% increase in 2024. Revenue Margin: 44 basis points, in line with guidance. Cost Management: Costs increased by 3% to GBP474 million. High Net Worth Profit: Increased 17% to GBP48 million. Affluent Profit: Increased 19% to GBP148 million. Solvency Ratio: Maintained strong solvency and cash position. Final Dividend: 4.2p per share, total for the year 5.9p. Warning! GuruFocus has detected 5 Warning Signs with QUILF. Release Date: March 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Adjusted profit increased by 17% to GBP196 million, reflecting robust cost management and higher revenues. Operating margin improved to 29%, surpassing the 25% target for 2025 and aligning with the 30% medium-term goal. Core net flows rose significantly to over GBP5 billion, indicating strong flow momentum. Earnings per share increased by 13% to 10.6p, with a proposed dividend increase of 13% to 5.9p. Quilter PLC (QUILF) achieved a 46% increase in adjusted profit before tax over the last two years, demonstrating strong financial performance. A provision of GBP76 million was recognized for potential client remediation related to the ongoing advice review. The Cirilium Active range experienced outflows, impacting the revenue margin on managed assets. High net worth net inflows were at 2%, below the desired mid-single-digit level. The ongoing advice review and potential client remediation could impact future financials. Interest rate benefits on client cash are expected to diminish, potentially reducing platform margins by around 1 basis point annually. Q: Regarding the GBP80 million upstream, should it be considered as offsetting the advice provision? Also, what is the expected growth in adviser headcount from the academy? A: (Steven Levin, CEO) Yes, around two-thirds of the academy participants are expected to become RFPs, contributing to adviser headcount growth. (Mark Satchel, CFO) The upstreaming can be seen as offsetting the provision, although ideally, we would retain the upstreaming without the need for a provision. Debt reduction is a medium-term consideration due to the high premium required for early exit. Q: What percentage of clients were assessed for potential redress in the ongoing advice provision? How is the pipeline for new advisers outside the academy? A: (Steven Levin, CEO) We are confident in the provision set aside for the ongoing advice review. We have a strong pipeline for adviser recruitment, and our retirement program allows for efficient client transitions, maintaining productivity even if adviser numbers fluctuate. Q: Can you elaborate on the 4% to 5% net flow target and the potential for market share growth in the platform space? A: (Steven Levin, CEO) The 4% to 5% target is a through-the-cycle figure. We achieved 7% in Q4 2024, indicating potential for higher performance in strong markets. We believe there is still room for market share growth, although the pace may slow. The platform market is expected to grow, benefiting from increased investments over savings. Q: How do you view the potential for further operating margin improvements across your divisions? A: (Mark Satchel, CFO) We see potential for margin improvements in both high net worth and affluent segments, with the latter having greater capacity for expansion due to its operating leverage. The affluent segment, particularly the platform and fund management business, offers significant opportunities for margin growth. Q: What is Quilter's stance on the FCA's upcoming review of MPS and the potential impact on your business? A: (Steven Levin, CEO) We welcome the FCA's review of MPS, as it is crucial for ensuring robust standards in a growing market. Quilter is well-prepared with a strong team and risk management functions. The review aligns with our commitment to maintaining high standards in our MPS offerings. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
