Quilter plots to more than double its profits by 2025 and reveals plans to dish out more cash to shareholders
- Fund manager will return £350m to shareholders after Quilter International sale
- Quilter’s third quarter net inflows reached £1bn, a tenfold rise on 2020 levels
Fund manager Quilter has revealed its plans to more than double its operating profit by 2025 and boost returns for shareholders.
In a trading update, the group detailed the capital return of its £460million sale of Quilter International to Utmost.
It said it will return £350million to shareholders while retaining the rest to fund longer-term revenue growth initiatives.
Boost: Fund manager Quilter has revealed its plans to more than double its operating profit by 2025
The fund manager, which became a standalone company after the break-up of Anglo-South African financial services firm Old Mutual back in 2018, expects the previously announced £480million sale of Quilter International to Utmost to complete by the end of the year.
Quilter also set a new dividend policy with a target pay-out range of 50 per cent to 70 per cent of post-tax, post-interest adjusted profits, up from a previous 40 per cent to 60 per cent of post-tax adjusted profits.
Third quarter net inflows reached £1billion, marking a tenfold rise from the third quarter of 2020, the group said.
The company reported that its assets under management and administration, excluding the sale of Quilter International, had reached £108.5billion by the end of September 2021, with year-to-date net inflows reaching £3billion, up from £1.1billion in 2020.
Quilter said it plans to spend £90million on a simplification programme to cut costs, and invest in growth areas such as a ‘hybrid’ advice offering and more digitalisation.
‘We now look forward to executing the next stage of Quilter´s strategic journey, which will be characterised by a focus on growth and efficiency,’ boss Paul Feeney said.
He added: ‘I am delighted with the significant improvement in our third quarter net flows which were up tenfold to £1billion from £0.1billion in 2020.
‘Excellent growth in flows from our advisers has been coupled with a very substantial increase in flows from the IFA channel who have taken extremely well to our new platform.’
Shares in FTSE 250-listed Quilter are currently up 1.59 per cent or 2.50p to 159.30p. A year ago the group’s share price was 123.40p, meaning it has risen by around 29 per cent in the past year.
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