Quilter rallies on full-year profit growth


Quilter rallies on full-year profit growth

Published Date: 2019-03-13 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Quilter rallies on full-year profit growth

The MedScheme owner has maintained its programme of expansion as it prepares for new public sector contracts.

The UK wealth manager has grown earnings despite tough markets that resulted in a decline in assets under management.

Quilter has reported a decline in assets under management due to last year's weak equity markets. But the UK wealth manager still managed to attract positive net flows of client funds for the year to end-December.

These are the first full-year results from Quilter since it was unbundled and listed by Old Mutual last June as part of the managed separation of its component businesses. It said it successfully completed the sale of its Single Strategy asset management business during the period, returning £221 million to shareholders through a special dividend of 12p per share.

For the period, assets under management and administration declined by 4% to £109.3 billion as positive net inflows of £2.7 billion were more than offset by a negative market performance of £7.8 billion. It improved its operating margin to 30% from 29% and grew adjusted profit before tax by 11% to £233 million. Adjusted diluted earnings per share rose 15% to 12.3p and it has recommended a final dividend of 3.3p.

Its shares rose 5.1% to R26 yesterday.

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