Quilter slips despite record inflows, double‑digit profit growth in H1

(Sharecast News) - Investment and wealth manager Quilter delivered another strong firsthalf performance on Thursday, reporting record net inflows and doubledigit profit growth across its platform, solutions and highnetworth businesses, although the stock traded lower as investors focused on rising costs and weaker interest income.

Quilter said revenues rose 12% to �379m, while adjusted profits also increased 12% to �112m and adjusted diluted earnings per share climbed 13% to 6.1p. Core net flows hit a fresh record of �6bn, up 32% yearonyear and equivalent to 9% of opening assets. Gross flows reached �11.9bn, and average assets under management and administration grew 21%.

The FTSE 250-listed firm said momentum remained broadbased, with platform assets rising to �118bn as platform gross new business flows nearly doubled to just under �10bn. Its share of new advised business increased to 18%, from 12% over the same period, while adviser productivity also improved, rising to �3.9m per adviser from �2.7m, and new business generated by Quilter advisers onto the platform jumped around 70%.

In its solutions division, Quilter said WealthSelect managed portfolio service assets have grown at a 37% compound rate since June 2023, giving it a 13% share of the MPS market.

However, costs rose 13% to �267m, reflecting inflation and investment in technology, data capabilities, brand development and adviser support. Quilter's operating margin remained steady at 30%.

Quilter also lifted its interim dividend 5% to 2.1p, and said �68m of its �100m buyback had been completed.

Looking ahead, Quilter expects a constructive backdrop in the second half, with adjusted profits set to rise by a midsingledigit percentage, supported by record flows, stable markets and further productivity gains from technology and AI.

As of 1335 BST, Quilter shares were down 2.47% at 197.60p.

Reporting by Iain Gilbert at Sharecast.com

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