Quilter interim results June 2019
Total revenue for the interim period shot up to GBP5.5 billion (GBP772 million) whilst loss attributable to equity holders came in at GBP17 million (GBP342 million). In addition, headline loss per share of GBP0.9 pence per share (headline earnings pf GBP2.8 pence per share) was recorded.
The Board declared an interim dividend of GBP1.7 pence per share, representing a pay-out ratio of approximately 46% of adjusted profit after tax and based on an expected one third/two thirds dividend split. This is consistent with the dividend policy outlined at the time of our Listing one year ago
As previously discussed, 2019 was always expected to be a transitional year for Quilter. The flow environment is likely to remain challenging in the near-term. While overall equity market levels have been supportive so far in 2019, we are conscious that market confidence remains fragile. As well as having to manage through these external factors, we will continue to deal with the outflows in Quilter Cheviot associated with last year’s Investment Manager departures and, as we lead up to and move through the UK Platform migration, we expect new customer flows onto our existing platform to remain subdued. As a consequence, in this context, we remain committed to delivering broadly flat costs in 2019, excluding the impact of acquisitions.
Our near-term agenda remains focussed on four key priorities:
* First, and most importantly, we will successfully implement our new UK platform, ensure a smooth migration for existing customers and deliver on the growth opportunity, once implemented.
* Second, integrate our advice acquisitions and build our national advice business into a full scale UK wide business.
* Third, execute on our optimisation plans to deliver operating leverage and higher shareholder returns.
* Finally, we want to make Quilter a simpler and more focussed wealth management business, as we have demonstrated with the sale of Quilter Life Assurance.
Each of these priorities is on track and as we look towards 2020 and beyond, we remain excited as to our growth prospects and have confidence in our strategic path. By this time next year we will have migrated to a new, modern platform with greater product scope and significantly better automation and resilience. Advisers supported by Quilter will also have an upgraded and streamlined payments system, a new and improved point of sale system, upgraded adviser and client portals and, reflective of the world we live in, stronger security controls to protect our adviser and client data. Although the external environment is more challenging than a year ago, operationally we are where we expected to be at this stage as we continue to deliver value for all our stakeholders.