Quilter reports adjusted profit of £100 million and H1 2025 core net inflows of £4.5 billion representing 8% of opening AuMA (annualised)

6 August 2025

Quilter reports adjusted profit of £100 million and H1 2025 core net inflows of £4.5 billion representing 8% of opening AuMA (annualised)

Steven Levin, Chief Executive Officer, said:

“I’m pleased with our start to 2025. Flow momentum remains excellent with our Affluent and High Net Worth segments both outperforming their market peers for level of inflows and growth as a percentage of opening assets. This clearly demonstrates the powerful nature of our dual-distribution model. Our business has built on the momentum of the last two years, is in great shape and is continuing to deliver on the growth opportunities ahead.”

Highlights:

• Total Assets under Management and Administration (“AuMA”) increased by 6% since year end to £126.3 billion reflecting net inflows of £4.3 billion coupled with a positive contribution from markets despite US Dollar weakness over the period. Core net inflows of £4.5 billion represented an annualised 8% (H1 2024: 3%) of opening AuMA (7% reported after non-core net outflows).
• Platform Assets under Administration (“AuA”) increased by 8% to £92.0 billion since year-end. First half Platform net inflows of £4.2 billion (H1 2024: £2.2 billion) were up 92% on the first half of 2024 and represented 10% (annualised) of opening AuA. Total assets under management by WealthSelect, the UK’s largest Managed Portfolio Service (“MPS”) reached £21.0 billion, an increase of 14% from December 2024.
• The High Net Worth segment delivered a strong improvement in net inflows to 3% (annualised) of opening assets (H1 2024: 1%).
• Adjusted profit before tax increased by 3% to £100 million (H1 2024: £97 million) with a percentage point improvement in the operating margin to 30% (H1 2024: 29%).
• Revenues grew by 2% to £337 million (H1 2024: £329 million) reflecting higher management fee revenue partially offset by lower investment revenue generated on shareholder funds. Cost control limited cost growth to 2%, taking the expense base to £237 million (H1 2024: £232 million).
• Our Simplification programme has now achieved £43 million of savings on a run-rate basis, with the remaining £7 million of the £50 million target expected to be delivered, on a run-rate basis, by the end of 2025.
• Adjusted diluted earnings per share of 5.4p increased by 4% (H1 2024: 5.2p), broadly in line with the increase in adjusted profit.
• Net increase of 14 Quilter Restricted Financial Planners (“RFP’s”) to 1,454 and four Investment Managers to 180 since December 2024.
• Ongoing Advice Review: Skilled Person Review submitted to the FCA with discussions now focused on the implementation of a likely remediation programme. Previously recognised provision remains appropriate.
• IFRS profit after tax of £46 million (H1 2024: £13 million).
• Interim Dividend of 2.0 pence per share (H1 2024: 1.7 pence per share), representing an increase of 18%.
• Solvency II ratio of 214% after payment of Interim Dividend (31 December 2024: 219%).

Key financial highlights

We assess our financial performance using a variety of measures including alternative performance measures (“APMs”), as explained further on pages 15 to 17. In the headings and tables presented, these measures are indicated with an asterisk: *.

Chief Executive Officer’s statement

Business performance

I am pleased with our performance during the first half of 2025. While UK and European markets have delivered positive year-to-date returns, US Dollar weakness meant US denominated assets were lower in Sterling terms. Notwithstanding this, we have delivered:

1. a first half adjusted profit of £100 million (H1 2024: £97 million) representing an increase of 3% on 2024’s strong base level;
2. an operating margin of 30% (H1 2024: 29%), despite lower interest rates reducing investment income on shareholders’ funds; and
3. strong flow momentum across the business with core net inflows up 160% to £4.5 billion. This represented 8% (annualised) of opening assets (H1 2024: £1.7 billion, 3% (annualised) of opening assets).

Our Affluent segment delivered strong core net inflows of 9% (annualised) of opening assets (H1 2024: 5%). Our Platform flows maintained the strong momentum from the second half of 2024 and continues to gain recognition from external market observers, improved net promoter scores as well as winning awards for service. First half Platform net inflows of £4.2 billion were up 92% on the first half of 2024 with this representing 10% (H1 2024: 6%) of opening assets (annualised).

Our High Net Worth segment delivered an improvement in net inflows to 3% (annualised) of opening assets (H1 2024: 1%). New gross flows were broadly stable at £1.5 billion with an easing of outflows leading to much better performance at the net level of £464 million (H1 2024: £107 million).

Adjusted profit before tax of £100 million (H1 2024: £97 million) represents the Group’s IFRS profit, adjusted for items that management consider to be outside of normal operations or one-off in nature. The Group’s IFRS profit after tax was £46 million compared to £13 million in H1 2024. Principal differences between adjusted profit and IFRS profit in the current period are due to non-cash amortisation of intangible assets and business transformation expenses.

In our preliminary results announcement on 5 March 2025, we recognised a provision of £76 million to cover potential remediation outcomes associated with the Skilled Person Review of ongoing advice by Appointed Representative firms in the Quilter Financial Planning network. The Skilled Person report was submitted to the FCA in the second quarter, and we have had initial conversations with the FCA regarding the implementation of the potential remediation programme. The provision of £76 million has since reduced to £70 million as a result of utilisation and discount unwind. The Group continues to believe this sum remains appropriate.

Group adjusted diluted earnings per share was 5.4 pence, an increase of 4% (H1 2024: 5.2 pence). On an IFRS basis, we delivered basic earnings per share of 3.4 pence per share versus 1.0 pence per share for H1 2024.

The Board declared an Interim Dividend of 2.0 pence per share, representing one third of the total 2024 dividend with this equivalent to a pay-out ratio of 59%. Once we have confirmed the implementation of the Ongoing Advice remediation programme with the FCA, the Group intends to undertake a review of our capital needs, foreseeable requirements and expected future cash and capital generation to consider whether the Group has excess capital and whether the current distribution strategy remains appropriate. We anticipate updating on the outcome of this exercise with our preliminary results announcement in March 2026.

Strategic positioning

Quilter is in great shape today and we believe Quilter is well placed to be a winner from the changes reshaping our industry:

• First, we believe that the next few decades will witness a significant intergenerational transfer in wealth as the “baby boomer” generation passes assets to younger generations. With the complexity of UK personal tax legislation continuing to increase, appropriate personalised financial advice is needed to ensure this is undertaken as tax-efficiently as possible. The announcement in the last budget that pensions would be brought into inheritance tax from April 2027 has already driven up adviser-client engagement as clients revisit their existing financial plans.
• Second, policymakers, regulators and individuals all recognise the need for UK households to invest more to meet desired living standards in retirement. While UK households are a nation of savers, bank deposits do not generate real capital appreciation. We believe that appropriately structured, well-diversified investment portfolios are the most appropriate pathway to long-term wealth accumulation for British households. Quilter can provide this at scale.
• Third, the Advice Guidance Boundary Review (“AGBR”) which introduces “Targeted Support” represents the most significant change to UK retail financial services regulation since the Retail Distribution Review over ten years ago. Over time, we expect that Targeted Support will allow a much broader range of options to UK households who need help with financial planning and will allow this to be provided in a manner that best suits their requirements. 
• Finally, we are encouraged by the sentiments expressed by the UK Chancellor at her recent Mansion House speech. Clearly, the recognition from policy-makers and regulators of the need to deliver more proportionate, pro-growth regulation in the UK is positive both for investors in UK financial services companies and for those of us across the industry who fundamentally want to deliver good outcomes for our clients.

Reflecting these industry trends, Fundscape, an independent platform analysis company, expects UK advised platform assets of c.£680 billion at end December 2024 to increase by around 70% by end 2029 in their base case. Convenience of use and easy access to flexible transparent solutions will ensure that the platform industry continues to be the natural custodian of wealth investments accumulated by UK households. Moreover, platforms help advisers meet the demands of Consumer Duty by allowing them to focus on the advice relationship, while outsourcing investment management to managed portfolio solutions.

Quilter combines the UK’s largest and fastest growing advised platform of scale, with our well-performing and market-leading WealthSelect managed portfolio proposition, which now has over £21 billion of Assets under Management. This makes Quilter particularly capable to capitalise on these trends. Our dual-distribution strategy ensures Quilter is well-placed to deliver wealth solutions to UK households at an industrial scale, with this built on the personal nature of individual adviser-client relationships that are core to the industry’s success.

We also see significant growth potential in our High Net Worth business. Oliver Wyman, a leading consultancy, estimates that the High Net Worth market in the UK will grow by around 50% by 2029. We believe delivering on that potential will need an evolution of traditional DFM models towards more differentiated propositions in order to allow them to serve a broader range of wealthy clients.

My priorities

Looking ahead, our focus is on the following initiatives:

1. Building the advice business of tomorrow

We have around 1,450 Quilter RFP’s across our network who wrote around £2.5 billion of new business in the first half of 2025, a broadly similar level to 2024. The investment we are making in our Advice Transformation Programme (“ATP”) aims to materially improve their productivity through enhanced Client Relationship Management systems with integrated support tools. ATP will allow advisers to service a larger number of clients under a range of service and charging models and will be implemented over the next couple of years.

Our Adviser Academy continues to deliver increasing numbers of advisers, with 63 graduating in the first half of 2025. These graduates, together with new firm joiners have contributed to a net increase of 14 advisers within our network since year-end. Our medium-term goal remains for academy graduates to broadly offset natural attrition from retirements with growth coming from new advisers and firms joining the network. Our Quilter Partners proposition is also expected to be a source of adviser growth and now covers ten hub firms which combine investment and Platform alignment with the entrepreneurial drive and focus of owner-operated businesses.

2. Broadening distribution channels

As a result of the conclusions of the AGBR, we expect the financial support options for UK consumers to increase significantly. The FCA indicated that they are likely to be comfortable with Targeted Support being provided at no charge to ensure maximum take-up, with the costs of providing this met through product cross subsidisation (subject to this being undertaken in a Customer Duty compliant manner). Such an approach would favour integrated firms, like Quilter, who can use scale efficiencies in platform and investment solutions to deliver a compelling 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 who would like a little help to build their financial wealth. 

3. High Net Worth evolution

In June we announced Andy McGlone had decided he would step down as CEO of our High Net Worth business later this year. I would like to thank Andy for all his efforts building this business over the last few years. I am particularly pleased by the successful integration of our investment and advice businesses into a single legal entity which allows us to service clients more effectively. Moving forward, I expect Andy’s successor, John Goddard, to continue to oversee the evolution of the business from being largely investment proposition led towards being recognised as a leading integrated wealth management business.

4. Enhancing the Quilter brand

We believe there is a significant opportunity to develop Quilter as a leading UK retail financial services brand recognised as a trusted destination for advice and investment services. Our sponsorship of the Quilter Nations Rugby Series later this year is the first step in establishing that connection which we look forward to building upon in the years ahead.

Outlook

Our results in the first half of 2025 have built upon the strong progress of the last two years. Looking forward, we expect a broadly stable UK macroeconomic environment, gradually reducing interest rates and a pick-up in real wages supporting increased saving and investment by UK households. We are approaching the end of our second Simplification programme. By end-June, this had delivered £43 million of cost savings on a run-rate basis. The remainder of the targeted £50 million will be delivered by end 2025. However, the brand spend and business investment plans we announced alongside our preliminary results earlier this year will lead to a step-up in second half costs, and we expect that this will largely offset the higher revenue contribution from our net flow momentum and positive markets. As a result, we currently anticipate that second half adjusted profit will be broadly equivalent to the first half level.

Longer-term, increased demand for financial advice and support will be driven by three structural factors:

• increasing inter-generational transfer of wealth where personalised financial advice can ensure this happens in a tax-efficient manner;
• individuals needing to take personal responsibility for their long-term financial security; and
• regulatory changes reshaping the advice landscape, with policy makers recognising individuals need help to meet their financial goals.

This provides a significant opportunity, which we will meet through:

• supporting advisers with improved technology to enhance their productivity; and
• building new advice and guidance propositions for clients who are receptive to Targeted Support.

The fundamental growth characteristic that supports our business – the need to save for retirement – has never been more important to both individuals and to society than it is today. The strength of our dual-distribution model coupled with the operating leverage in our Platform and Solutions business allows us to provide personal wealth management services at scale, while our business focus, investment solutions and client philosophy all support delivering good client outcomes through long-term wealth accumulation. We look forward to the future with confidence and remain focused on supporting advisers and our clients to meet their needs while delivering strong outcomes for all our stakeholders in the years ahead.

Steven Levin

Chief Executive Officer

Please follow this link for the full announcement.

Quilter plc results for the period ended 30 June 2025

Steven Levin, CEO, and Mark Satchel, CFO, will give a presentation via webcast at 08:30am (BST) today, 6 August 2025. The presentation will be followed by a Q&A session.

The presentation will be available to view live via the webcast or can be listened to via a conference call facility. Details on how to join online or via conference call can be found on our website: 2025 results and presentations | Quilter plc

Note: Neither the content of the Company's website nor the content of any website accessible from hyperlinks on this announcement (or any other website) is incorporated into, or forms part of, this announcement.

Disclaimer

This announcement may contain forward-looking statements with respect to certain Quilter plc’s plans and its current goals and expectations relating to its future financial condition, performance and results.

By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Quilter plc’s control including amongst other things, international and global economic and business conditions, the implications and economic impact of global conflicts, economic political uncertainty, market related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing and impact of other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in the jurisdictions in which Quilter plc and its affiliates operate. As a result, Quilter plc’s actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in Quilter plc’s forward-looking statements.

Quilter plc undertakes no obligation to update the forward-looking statements contained in this presentation or any other forward-looking statements it may make.