In This Article:
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Adjusted Profit: Increased 17% to GBP196 million.
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Operating Margin: Achieved 29%, surpassing the 25% target for 2025.
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Core Net Flows: Increased to over GBP5 billion.
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Earnings Per Share (EPS): Rose 13% to 10.6p.
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Dividend: Proposed at 5.9p, a 13% increase.
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Revenue Growth: 7% increase in 2024.
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Revenue Margin: 44 basis points, in line with guidance.
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Cost Management: Costs increased by 3% to GBP474 million.
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High Net Worth Profit: Increased 17% to GBP48 million.
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Affluent Profit: Increased 19% to GBP148 million.
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Solvency Ratio: Maintained strong solvency and cash position.
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Final Dividend: 4.2p per share, total for the year 5.9p.
Release Date: March 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Adjusted profit increased by 17% to GBP196 million, reflecting robust cost management and higher revenues.
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Operating margin improved to 29%, surpassing the 25% target for 2025 and aligning with the 30% medium-term goal.
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Core net flows rose significantly to over GBP5 billion, indicating strong flow momentum.
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Earnings per share increased by 13% to 10.6p, with a proposed dividend increase of 13% to 5.9p.
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Quilter PLC (QUILF) achieved a 46% increase in adjusted profit before tax over the last two years, demonstrating strong financial performance.
Negative Points
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A provision of GBP76 million was recognized for potential client remediation related to the ongoing advice review.
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The Cirilium Active range experienced outflows, impacting the revenue margin on managed assets.
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High net worth net inflows were at 2%, below the desired mid-single-digit level.
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The ongoing advice review and potential client remediation could impact future financials.
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Interest rate benefits on client cash are expected to diminish, potentially reducing platform margins by around 1 basis point annually.
Q & A Highlights
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.