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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 £61 million for six months to June 30 from £56 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 £182 million from a loss of £21 million, thanks to a tax credit attributable to policyholder returns. Pretax profit from continuing operations rose by 37% to £37 million from £27 million.
Total net fee revenue was virtually unchanged at of £303 million from £304 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 £98.7 billion as at June 30 from £111.8 million as at December 31, principally due to adverse market movements of £14.5 billion, which offset net inflows.
Net inflows slowed by 30% to £1.4 billion from £2.0 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 R 22.90.
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