Quilter interim profit up 9% amid "extremely challenging" conditions

(Alliance News) - Quilter PLC on Wednesday reported a single-digit rise in profit in the first ...

Alliance News 10 August, 2022 | 7:52AM
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(Alliance News) - Quilter PLC on Wednesday reported a single-digit rise in profit in the first half characterised by heightened global market volatility and "extremely challenging" conditions.

The London-based wealth manager posted a 8.9% increase in adjusted pretax profit to GBP61 million for six months to June 30 from GBP56 million in the prior year on the back of broadly flat revenue and cost discipline.

Pretax profit attributable to equity holders from continuing operations swung to GBP182 million from a loss of GBP21 million, thanks to a tax credit attributable to policyholder returns. Pretax profit from continuing operations rose by 37% to GBP37 million from GBP27 million.

Total net fee revenue was virtually unchanged at of GBP303 million from GBP304 million.

The interim dividend was held at 1.2 pence, even though adjusted diluted earnings per share dropped by 5.1% to 3.7p from 3.9p. Basic earnings per share from continuing operations flipped to positive 11.3p from a loss of 0.9p.

For the interim period, assets under management and administration were 12% lower at GBP98.7 billion as at June 30 from GBP111.8 million as at December 31, principally due to adverse market movements of GBP14.5 billion, which offset net inflows.

Net inflows slowed by 30% to GBP1.4 billion from GBP2.0 billion.

"This year global equity markets have experienced one of the worst periods of negative performance in recent years," Quilter said.

While the UK has been seen as an outperformer so far this year, with the FTSE 100 down 3%, the FTSE 250 and the FTSE AIM 100 both declined 20% and 25% respectively in six months ended June 30, Quilter noted.

"During H1 2022 cost of living and inflationary pressures, coupled with the geopolitical shock of Russia's invasion of Ukraine, created extremely challenging market conditions and led to a decline in consumer confidence which has impacted investment inflows. In addition, competition in our key markets continues to intensify," the group said.

These conditions present challenges for short-term financial performance, it added.

"Quilter is well positioned in an industry with long-term secular growth prospects, and we have made further good progress in the execution of our strategy," Quilter Chief Executive Paul Feeney said.

Quilter shares were down 3.1% in London early Wednesday at 116.05 pence. They were down 4.8% in Johannesburg at ZAR22.90.

By Artwell Dlamini; artwelldlamini@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Quilter PLC Ordinary Shares 107.60 GBX 2.09 -

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