REG - Quilter PLC - Quilter plc - 2025 Half Year Results Part 2
Wed 07:00
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RNS Number : 1225U Quilter PLC 06 August 2025
Statement of Directors' responsibilities in respect of the interim financial statements
For the period ended 30 June 2025
Each of the Directors of Quilter plc confirms to the best of their knowledge
and belief that:
· The condensed consolidated interim financial statements, which
comprise the consolidated statement of comprehensive income, the consolidated
statement of financial position, the consolidated statement of changes in
equity, the consolidated statement of cash flows and the related explanatory
notes, have been prepared in accordance with IAS 34 Interim Financial
Reporting as adopted by the United Kingdom and give a true and fair view of
the assets, liabilities, financial position and profits of the Group for the
period ended 30 June 2025. These interim financials have been prepared and
published in compliance with the acceptable accounting frameworks of the
London Stock Exchange ("LSE"), where the Company has its primary listing.
· The interim management report includes a fair review of the
information required by:
a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed consolidated interim
financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the year; and
b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place in the first six months of
the financial year and that have materially affected the financial position or
performance of the Group during that period, and any changes in the related
party transactions described in the Group's 2024 Annual Report that could do
so.
Consistent with principle N of the UK Corporate Governance Code, the results
for the six months ended 30 June 2025 taken as a whole, present a fair,
balanced and understandable assessment of the Company's position and
prospects.
Quilter plc is listed with a primary listing on the LSE and a secondary
listing on the Johannesburg Stock Exchange ("JSE").
A list of the current Directors is maintained on the Group's website:
https://plc.quilter.com/about-us/quilter-leadership/.
Signed on behalf of the Board
Steven Levin
Mark Satchel
Chief Executive Officer
Chief Financial Officer
5 August
2025
5 August 2025
Independent review report to Quilter plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Quilter plc's condensed consolidated interim financial
statements (the "interim financial statements") in the interim results of
Quilter plc for the 6 month period ended 30 June 2025 (the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
· the Condensed consolidated statement of financial position as at
30 June 2025;
· the Condensed consolidated statement of comprehensive income for
the period then ended;
· the Condensed consolidated statement of cash flows for the period
then ended;
· the Condensed consolidated statement of changes in equity for the
period then ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the interim results of Quilter
plc have been prepared in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the interim results and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the Directors have
inappropriately adopted the going concern basis of accounting or that the
Directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the Group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the Directors
The interim results, including the interim financial statements, are the
responsibility of, and have been approved by the Directors. The Directors are
responsible for preparing the interim results in accordance with the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority. In preparing the interim results, including the
interim financial statements, the Directors are responsible for assessing the
Group's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of
accounting unless the Directors either intend to liquidate the Group or to
cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the interim results based on our review. Our conclusion,
including our Conclusions relating to going concern, is based on procedures
that are less extensive than audit procedures, as described in the Basis for
conclusion paragraph of this report. This report, including the conclusion,
has been prepared for and only for the Company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and for no other purpose. We do not, in
giving this conclusion, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
5 August 2025
Condensed consolidated statement of comprehensive income
For the period ended 30 June 2025
£m
Notes Six months Six months
2025 2024
Income
Fee income and other income from service activities 6(b) 311 286
Investment return 2,240 3,085
Other income 12 14
Total income 2,563 3,385
Expenses
Change in investment contract liabilities (1,752) (2,606)
Fee and commission expenses and other acquisition costs (29) (25)
Change in third-party interests in consolidated funds (368) (371)
Other operating and administrative expenses (305) (296)
Finance costs (10) (10)
Total expenses (2,464) (3,308)
Reversal of impairment of investments in associates 1 -
Profit before tax 100 77
Income tax expense attributable to policyholder returns 7 (38) (59)
Profit before tax attributable to shareholder returns 62 18
Income tax expense 7 (54) (64)
Less: income tax expense attributable to policyholder returns 38 59
Income tax expense attributable to shareholder returns 7 (16) (5)
Profit after tax attributable to the owners of the Company 46 13
Other comprehensive income
Exchange gains on translation of foreign operations 1 -
Total comprehensive income 47 13
Earnings per Ordinary Share
Basic earnings per Ordinary Share (pence) 8 3.4 1.0
Diluted earnings per Ordinary Share (pence) 8 3.3 0.9
All income and expenses relate to continuing operations.
The above condensed consolidated statement of comprehensive income should be
read in conjunction with the accompanying notes.
Condensed consolidated statement of financial position
At 30 June 2025
£m
Notes 30 June 31 December
2025 2024
Assets
Goodwill and intangible assets 10 333 339
Property, plant and equipment 89 91
Investment property 8 9
Investments in associates 20 16
Contract costs 28 24
Loans and advances 60 56
Financial investments 11 64,179 59,360
Deferred tax assets 102 115
Current tax receivable 27 45
Trade, other receivables and other assets 691 418
Derivative assets 79 26
Cash and cash equivalents 14 2,165 1,949
Total assets 67,781 62,448
Equity and liabilities
Equity
Ordinary Share capital 15 115 115
Ordinary Share premium reserve 58 58
Capital redemption reserve 346 346
Share-based payments reserve 32 42
Other reserves - (1)
Retained earnings 857 863
Total equity 1,408 1,423
Liabilities
Investment contract liabilities 56,291 51,758
Third-party interests in consolidated funds 8,678 8,225
Provisions 16 96 111
Deferred tax liabilities 108 96
Current tax payable 8 1
Borrowings and lease liabilities 274 275
Trade, other payables and other liabilities 895 506
Derivative liabilities 23 53
Total liabilities 66,373 61,025
Total equity and liabilities 67,781 62,448
The financial statements were approved by the Board of Directors on 5 August
2025.
Steven Levin Mark Satchel
Chief Executive Officer Chief Financial Officer
The above condensed consolidated statement of financial position should be
read in conjunction with the accompanying notes.
Condensed consolidated statement of changes in equity
For the period ended 30 June 2025
£m
Note Ordinary Ordinary Share Capital redemption reserve Share-based payments reserve Other reserves Retained earnings Total
Share premium reserve shareholders'
capital equity
Balance at 1 January 2025 115 58 346 42 (1) 863 1,423
Profit after tax - - - - - 46 46
Other comprehensive income - - - - 1 - 1
Total comprehensive income - - - - 1 46 47
Dividends 9 - - - - - (57) (57)
Movement in own shares - - - - - (13) (13)
Equity share-based payment transactions - - - (10) - 16 6
Aggregate tax effects of items recognised directly in equity - - - - - 2 2
Total transactions with the owners of the Company - - - (10) - (52) (62)
Balance at 30 June 2025 115 58 346 32 - 857 1,408
Balance at 1 January 2024 115 58 346 42 - 958 1,519
Total comprehensive income(1) - - - - - 13 13
Dividends 9 - - - - - (50) (50)
Exchange rate movement (ZAR/GBP)(2) - - - - - (1) (1)
Movement in own shares - - - - - (6) (6)
Equity share-based payment transactions - - - (11) - 17 6
Aggregate tax effects of items recognised directly in equity - - - 1 - - 1
Total transactions with the owners of the Company - - - (10) - (40) (50)
Balance at 30 June 2024 115 58 346 32 - 931 1,482
(1)For the six-month period to 30 June 2024, total comprehensive income was
equal to profit after tax attributable to the owners of the Company.
(2)The impact of exchange rate movements between the announcement dates of
dividends payable and the payment dates on the pound sterling equivalent of
payments to JSE shareholders in South African Rand are recognised directly in
equity. The Group held cash in South African Rand equal to the expected cash
outflows and therefore was economically hedged for the outflows.
The above condensed consolidated statement of changes in equity should be read
in conjunction with the accompanying notes.
( )
Consolidated statement of cash flows
For the period ended 30 June 2025
The cash flows presented in this statement cover all the Group's activities
and include flows from both policyholder and shareholder activities. All cash
and cash equivalents are available for general use by the Group for the
purposes of the disclosures required under IAS 7 Statement of Cash Flows
except for cash and cash equivalents in consolidated funds (as shown in note
14).
£m
Notes Six months Six months
2025 2024
Cash flows from operating activities
Cash flows from operating activities 3,003 1,984
Taxation paid (4) (26)
Total net cash flows from operating activities 2,999 1,958
Cash flows from investing activities
Net purchases and sales of financial investments (2,692) (1,847)
Purchase of property, plant and equipment (3) -
Acquisition of subsidiary 4 (2) -
Acquisition of shares in associates (4) (1)
Total net cash flows from investing activities (2,701) (1,848)
Cash flows from financing activities
Dividends paid to the owners of the Company 9 (57) (50)
Exchange rate movements passed to shareholders(1) - (1)
Finance costs on borrowings(2) (9) (9)
Payment of interest on lease liabilities(2) (1) (2)
Payment of principal of lease liabilities (2) (3)
Quilter plc shares acquired for use within the Group's employee share scheme (13) (6)
Total net cash flows from financing activities (82) (71)
Net increase in cash and cash equivalents 216 39
Cash and cash equivalents at the beginning of the year 1,949 1,859
Effect of exchange rate changes on cash and cash equivalents - 1
Cash and cash equivalents at the end of the period 14 2,165 1,899
(1)The exchange rate movements passed to shareholders relate to foreign
exchange gains or losses that have arisen on dividend payments to JSE
shareholders. Further details are included within the consolidated statement
of changes in equity.
(2)The total interest paid during the period includes finance costs on
borrowings and payment of interest on lease liabilities.
( )
The above condensed consolidated statement of cash flows should be read in
conjunction with the accompanying notes.
Notes to the condensed consolidated interim financial statements
For the period ended 30 June 2025
General information
Quilter plc (the "Company"), a public limited company incorporated in England
and Wales and domiciled in the United Kingdom ("UK"), together with its
subsidiaries (collectively, the "Group") offers investment and wealth
management services, long-term savings and financial advice primarily in the
UK. Quilter plc is listed with a primary listing on the London Stock Exchange
("LSE") and a secondary listing on the Johannesburg Stock Exchange ("JSE").
The Company's registration number is 06404270. The address of the registered
office is Senator House, 85 Queen Victoria Street, London, EC4V 4AB.
1: Basis of preparation
The results for the six months ended 30 June 2025 have been prepared in
accordance with the UK-adopted IAS 34 Interim Financial Reporting and the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority. Although unaudited, the results have been
reviewed by the Group's Auditor, PricewaterhouseCoopers LLP, and their report
is included earlier in this document. These condensed consolidated interim
financial statements (the "interim financial statements") of Quilter plc for
the six months ended 30 June 2025 do not constitute statutory accounts as
defined by section 434 of the Companies Act 2006. Comparative financial
information for the full year 2024 has been presented from the Group's 2024
Annual Report, which has been filed with the Registrar of Companies and was
prepared in accordance with the UK-adopted International Accounting Standards
and with the requirements of the Companies Act 2006 as applicable to companies
reporting under those standards. The auditor's report on those financial
statements was not qualified, did not include a reference to any matters to
which the auditor drew attention by way of emphasis without qualifying the
report and did not contain statements under section 498(2) or (3) of the
Companies Act 2006. Copies of the Group's 2024 Annual Report are available
online at plc.quilter.com.
These interim financial statements do not include all of the information
required for a complete set of IFRS compliant financial statements. Selected
notes are included to explain events and transactions that are significant to
an understanding of the changes in the Group's financial position and
performance since the publication of the Group's 2024 Annual Report. The Board
considers that the alternative performance measures provided, such as adjusted
profit, are also useful for both management and investors. Any seasonal or
cyclical factors, to the extent that they materially impact the Group's
results, are described in the Financial review.
There have been no changes in the Group's material accounting policies during
the period. All accounting policies for recognition, measurement,
consolidation and presentation are as outlined in the Group's 2024 Annual
Report. These interim financial statements have been prepared on a historical
cost basis, except for the revaluation of certain financial instruments, and
are presented in pounds sterling, which is the currency of the primary
economic environment in which the Group operates.
Going concern
The Directors have considered the resilience of the Group, its current
financial position, the principal risks facing the business and the
effectiveness of any mitigating strategies which are or could be applied. This
included an assessment of capital and liquidity over a three-year business
planning period covering 2025 to 2027. This assessment incorporated a number
of stress tests covering a broad range of scenarios, including economic and
market shocks of up to 40% falls in equity markets, mass lapse events, new
business growth scenarios and severe business interruption, equivalent to
1-in-50 and 1-in-200 year events. The assessment also considered the potential
implications of the Skilled Person Review which could include the potential
payment of remediation and associated administrative costs (see notes 16 and
17). As part of the going concern assessment, the Group took into
consideration the current position of the UK and global economy. The Group
also considered how climate-related risks and opportunities affect operations,
investment activities, advice and distribution, and their impact on specific
projects and initiatives, estimates and judgements. Based on the assessment,
the Directors believe that both the Group and Quilter plc have sufficient
financial resources to continue in business for a period of at least 12 months
from the date of approval of these interim financial statements and continue
to adopt the going concern basis in preparing the interim financial
statements.
Critical accounting estimates and judgements
The preparation of financial statements requires management to exercise
judgement in applying the Group's material accounting policies and make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements. The Board Audit Committee
reviews these areas of judgement and estimates, and the appropriateness of
material accounting policies adopted in the preparation of these financial
statements.
The Group's critical accounting estimates and judgements are detailed below:
Critical accounting judgements
The Group's critical accounting judgements are those made when applying its
material accounting policies and that have the greatest effect on the net
profit and net assets recognised in the Group's financial statements.
Ongoing Advice Review
As previously announced, the Group committed to undertake a review of
historical data and practices across the Appointed Representative firms in the
Quilter Financial Planning network in relation to the provision of ongoing
advice. Following discussion with the FCA, a Skilled Person was appointed in
June 2024 to assess and provide a view to the FCA on whether the delivery of
ongoing advice services by Appointed Representative firms in the Quilter
Financial Planning network had been compliant with applicable regulatory
requirements during the period from 1 January 2017 to 31 December 2023. Based
on the results of the Skilled Person Review, together with other evidence
available at the time, the Group recognised a provision for a reasonable
estimate of the costs of a potential customer remediation exercise at 31
December 2024, including both redress and administrative costs, based upon
current assumptions as to a plausible customer remediation approach that may
be followed. The Skilled Person Review was finalised during the first half of
2025, and the final report was submitted to the FCA. Discussions with the FCA
remain ongoing, and it is currently expected that some form of customer
remediation will likely be required. See notes 16 and 17 for further details
of the provision and contingent liability (including assumptions made and
uncertainties arising). The significant judgements are:
- the precise period to be included within the scope of a potential
remediation exercise; and
- the proportion of customers, determined by reference to cohorts shown by the
Skilled Person's sample to be at the highest likelihood of having not received
the expected level of service from their adviser, to be involved within the
scope of a potential remediation exercise.
Critical accounting estimates
The Group's critical accounting estimates involve the most complex or
subjective assessments and assumptions, which have a significant risk of
resulting in material adjustment to the net carrying amounts of assets and
liabilities until those amounts are settled. Management uses its knowledge of
current facts and circumstances and applies estimation and assumption setting
techniques, that are aligned with relevant actuarial and accounting standards
and guidance, to make predictions about future actions and events. Actual
results may differ materially from those estimates.
Ongoing Advice Review
As set out above, based on the results of the Skilled Person Review together
with other evidence available, the Group considers that a customer remediation
exercise in relation to ongoing advice will likely be required to consider
cases where the customer has been charged for ongoing advice services, and the
adviser is unable to satisfactorily evidence the provision of those services.
Any such remediation exercise is currently expected to involve the population
of customers who are at the highest likelihood of having not received the
expected level of service from their adviser, based upon the results of the
Skilled Person Review. Given that a customer remediation exercise will likely
be required, the Group has considered the estimated costs. This includes
estimates for refunds of fees previously charged and interest payable and the
cost of the remediation exercise. While there are a number of outstanding
contingencies and variables, the Group determined that a reasonable estimate
can be made based on the information available at the time, and as a result,
recognised a provision at 31 December 2024 (see notes 16 and 17). Following
the initial draft results of the statistically reliable representative cohort
of customers undertaken by the Skilled Person, an initial quantification of
the potential financial impact of the approach to be followed has been
reasonably estimated. In determining this provision, consideration has been
given to a wide range of assumptions, drawing on data from the Skilled
Person's work, previous experience of past business reviews, and the views of
external specialists familiar with similar remediation exercises. Discussions
with the FCA remain ongoing, to consider the form and methodology of this
potential customer remediation exercise. The significant estimates in the
calculation of the provision are:
- extrapolation of the proportion of the Skilled Person's statistically
significant sample where satisfactory evidence of servicing was not found, to
the entire population of ongoing advice customers;
- response rate for customers invited to engage in the potential remediation
exercise; and
- administrative costs to perform a potential remediation exercise, including
costs associated with customer engagement and case reviews, which have been
determined based upon experience from previous past business reviews performed
by the Group, and assumptions on the number of customers who may be subject
to the review process.
Measurement of deferred tax
The annual business planning process estimates future taxable profits based on
estimated levels of assets under management and administration ("AuMA"), which
are subject to a large number of factors including global stock market
movements, movements in foreign exchange rates, net client cash flows and
estimates of expenses and other charges. The Business Plan, adjusted for known
and estimated tax adjusting items, is used to determine the extent to which
deferred tax assets are recognised. The Group assesses the recoverability of
shareholder deferred tax assets based on estimated taxable profits over a
five-year horizon and assesses policyholder deferred tax assets based on
estimated investment growth over the medium term. To the extent that profit
estimates extend beyond the normal three-year planning cycle, average profits
over the final two years of the plan are used. This approach is considered
reasonable based on historical profitability. Future profit projections show
the majority of deferred tax assets being utilised over the next three years.
2: New standards, amendments to standards, and interpretations adopted by the
Group
The amendments to accounting standards in the table below became applicable
for the current reporting period, with no material impact on the Group's
results, financial position or disclosures.
Adopted by the Group from Amendments to standards
1 January 2025 Amendments to IAS 21 Lack of Exchangeability
3: Significant changes in the current reporting period
Except for the matters disclosed in the notes to these financial statements
there are no significant changes in the current reporting period to be
disclosed.
We continually review the principal risks and uncertainties facing the Group
which could pose a threat to the delivery of Quilter's strategic objectives.
The Group considers that the nature of the principal risks and uncertainties
that may have a material effect on the Group's performance over the remainder
of the financial year remains unchanged from those presented within the 2024
Annual Report and Accounts.
4: Acquisitions and disposals
Acquisitions
The Group made two acquisitions during the period to 30 June 2025.
On 1 April 2025, Quilter acquired 100% of the share capital of MediFintech
Ltd, a company that provides detailed NHS pension reports, technical support
and analysis to NHS pension members, for a total consideration of £5 million.
£2 million was paid on acquisition and a further £3 million is deferred
consideration payable in stages on the 1st, 2nd, 3rd and 4th anniversary dates
post completion dependent on business performance.
On 3 April 2025, the Group acquired 30% of the share capital of Digby
Associates Limited for £3 million. The Group has carried out an assessment of
control and influence and concluded that it has significant influence but not
control of this entity. It will therefore account for the holding as an
Investment in associate and account for its share of the profits or losses of
the company using the equity method of accounting. Subject to certain terms
being met, the Group intends to acquire the remaining share capital of the
company over the next four years.
There were two acquisitions during the year ended 31 December 2024. On 5
September 2024, Quilter acquired 100% of the share capital of NuWealth Limited
for a total consideration of £6 million. On 29 October 2024, the Group
acquired 35.0% of the share capital of Beals Mortgage and Financial Services
Limited, and 9.4% of the share capital of its subsidiary, Clinton Kennard
Associates Ltd.
Disposals
There have been no material disposals of businesses during the current or
prior periods.
5: Alternative performance measures
5(a): Adjusted profit before tax and reconciliation to profit after tax
Basis of preparation of adjusted profit before tax
Adjusted profit before tax is one of the Group's alternative performance
measures ("APMs") and represents the Group's IFRS results, adjusted for
specific items that management considers to be outside of the Group's normal
operations or one-off in nature, as detailed in note 5(b). Adjusted profit
before tax does not provide a complete picture of the Group's financial
performance, which is disclosed in the condensed consolidated statement of
comprehensive income, but is instead intended to provide additional
comparability and understanding of the financial results.
£m
Notes Six months Six months
2025 2024
Affluent 79 72
High Net Worth 24 25
Head Office (3) -
Adjusted profit before tax 6(b) 100 97
Adjusting items:
Impact of acquisition and disposal-related accounting 5(b)(i) (11) (19)
Business transformation costs 5(b)(ii) (17) (12)
Skilled Person Review 5(b)(iii) - (2)
Customer remediation exercise 5(b)(iv) (1) -
Exchange rate movements (ZAR/GBP) 5(b)(v) - 1
Policyholder tax adjustments 5(b)(vi) - (38)
Finance costs 5(b)(vii) (9) (9)
Total adjusting items before tax (38) (79)
Profit before tax attributable to shareholder returns 62 18
Income tax attributable to policyholder returns 7 38 59
IFRS profit before tax 100 77
Income tax expense 7 (54) (64)
IFRS profit after tax 46 13
5(b): Adjusting items
The adjustments made to the Group's IFRS profit before tax to calculate
adjusted profit before tax are detailed below.
5(b)(i): Impact of acquisition and disposal-related accounting
The Group excludes any impairment of goodwill from adjusted profit as well as
the amortisation and impairment of acquired intangible assets, finance costs
related to the discounting of contingent consideration and incidental items
relating to past disposals.
The effect of these adjustments to determine adjusted profit are summarised
below.
£m
Six months Six months
2025 2024
Amortisation of acquired intangible assets 10 19
Amortisation of acquired adviser schemes 1 -
Total impact of acquisition and disposal-related accounting 11 19
5(b)(ii): Business transformation costs
For the six months to 30 June 2025, business transformation costs totalled
£17 million (30 June 2024: £12 million), the principal components of which
are described below:
Business Simplification costs - 30 June 2025: £16 million, 30 June 2024: £11
million
During the six months to 30 June 2025, the Group spent £16 million on
delivering Simplification initiatives (30 June 2024: £11 million). The
implementation costs to deliver the remaining £7 million of annualised
run-rate savings for the programme are estimated to be £24 million.
Investment in business costs - 30 June 2025: £1 million, 30 June 2024: £1
million
Investment in business costs of £1 million (30 June 2024: £1 million) were
incurred as the Group continues to enable and support advisers and clients and
improve productivity through better utilisation of technology.
5(b)(iii): Skilled Person Review
During the period ended 30 June 2025, there were no Skilled Person Review
costs (30 June 2024: £2 million). Prior period costs included the estimated
external cost and direct cost of internal resources to support and perform the
Skilled Person Review of historical data and practices across the Quilter
Financial Planning network of Appointed Representative firms. This cost was
excluded from adjusted profit as management considered it to be outside of the
Group's normal operations and one-off in nature.
5(b)(iv): Customer remediation exercise
Customer remediation exercise costs of £1 million (30 June 2024: £nil)
represent an unwinding of the discount rate reflecting the passage of time
since 31 December 2024 when calculating the present value of future cost of
the Customer remediation exercise provision as at 30 June 2025.This cost is
excluded from adjusted profit as management considers it to be outside of the
Group's normal operations and one-off in nature.
5(b)(v): Exchange rate movements (ZAR/GBP)
For the period ended 30 June 2025, foreign exchange movements on cash held in
South African Rand in preparation for payments of dividends to shareholders
were £nil (30 June 2024: £1 million income). Cash is converted to South
African Rand upon announcement of the dividend payments to provide an economic
hedge for the Group. The foreign exchange movements are fully offset by an
equal amount taken directly to retained earnings.
5(b)(vi): Policyholder tax adjustments
For the period ended 30 June 2025, the total amount of policyholder tax
adjustments to adjusted profit is £nil (30 June 2024: £38 million credit).
Historically, adjustments to policyholder tax were made to remove distortions
due to the recognition of the income received from policyholders to fund the
policyholder tax liability (which is included within the Group's income) which
varied in timing to the recognition of the corresponding tax expense, creating
volatility in the Group's IFRS profit or loss before tax.
During 2024, the Group made changes to the Group's unit pricing policy
relating to policyholder tax charges. As expected, this has reduced the
volatility in these timing differences, and in turn, the value of the
policyholder tax adjustments in 2025.
5(b)(vii): Finance costs
The nature of much of the Group's operations means that, for management's
decision-making and internal performance management, the effects of interest
costs on subordinated debt are removed when calculating adjusted profit. For
the period ended 30 June 2025, finance costs were £9 million (30 June 2024:
£9 million).
5(c): Reconciliation of IFRS income and expenses to "Total net revenue" and
"Operating expenses" within adjusted profit
This reconciliation shows how each line of the Group's IFRS income and
expenses are allocated to the Group's APMs: Net management fees, Other
revenue, Investment revenue, Total net revenue and Operating expenses which
form the Group's adjusted profit before tax. The total column in the table
below, down to "Profit before tax attributable to shareholder returns",
reconciles to each line of the consolidated statement of comprehensive income.
Allocations are determined by management and aim to show the Group's sources
of profit (net of relevant directly attributable expenses). These allocations
remain consistent from period to period to ensure comparability, unless
otherwise stated.
£m
Six months 2025 Net mgmt. fees(1) Other revenue(1) Investment revenue(1) Total net revenue(1) Operating expenses(1) Adjusted profit before tax Consol. of funds(2) Total
Income
Fee income and other income from service activities 313 44 - 357 - 357 (46) 311
Investment return(3) 24 1,740 37 1,801 - 1,801 439 2,240
Other income - 1 - 1 10 11 1 12
Total income 337 1,785 37 2,159 10 2,169 394 2,563
Expenses
Change in investment contract liabilities(3) (10) (1,737) (5) (1,752) - (1,752) - (1,752)
Fee and commission expenses and other acquisition costs (25) 1 - (24) (1) (25) (4) (29)
Change in third-party interests in consolidated funds - - - - - - (368) (368)
Other operating and administrative expenses (7) (1) - (8) (275) (283) (22) (305)
Finance costs - - - - (10) (10) - (10)
Total expenses (42) (1,737) (5) (1,784) (286) (2,070) (394) (2,464)
Reversal of impairment of investments in associates - - - - 1 1 - 1
Profit before tax 295 48 32 375 (275) 100 - 100
Income tax expense attributable to policyholder returns (38) - - (38) - (38) - (38)
Profit before tax attributable to shareholder returns 257 48 32 337 (275) 62 - 62
Adjusting items:
Impact of acquisition and disposal-related accounting - - - - 11 11
Business transformation costs - - - - 17 17
Customer remediation exercise - - - - 1 1
Finance costs - - - - 9 9
Adjusting items - - - - 38 38
Adjusted profit before tax 257 48 32 337 (237) 100
( 1)The APMs "Net management fees", "Other revenue", "Investment revenue",
"Total net revenue" and "Operating expenses" are commented on within the
Financial review.
(2)Consolidation of funds shows the grossing up impact to the Group's income
and expenses as a result of the consolidation of funds requirements, as
described within note 5(a) to the Group's 2024 Annual Report. This grossing up
is excluded from the Group's adjusted profit.
(3)Reported within net management fees, investment return of £24 million
represents £14 million interest income on investments held for the benefit of
policyholders and £10 million net interest income on client money balances.
Change in investment contract liabilities of £10 million represents the
amount of interest income paid to policyholders. The net balance of £14
million represents interest income on customer balances retained by the Group
for the six months to 30 June 2025. The £37 million investment return less
£5 million change in investment contract liabilities paid to customers on
transactional cash balances, as reported within investment revenue, represents
£32 million of interest income on shareholder cash and cash equivalents.
£m
Six months 2024 Net mgmt. fees(1) Other revenue(1) Investment revenue(1) Total net revenue(1) Operating expenses(1) Adjusted profit before tax Consol. of funds(2) Total
Income
Fee income and other income from service activities 281 44 - 325 - 325 (39) 286
Investment return(3) 30 2,590 40 2,660 - 2,660 425 3,085
Other income - 3 - 3 10 13 1 14
Total income 311 2,637 40 2,988 10 2,998 387 3,385
Expenses
Change in investment contract liabilities(3) (14) (2,589) (3) (2,606) - (2,606) - (2,606)
Fee and commission expenses and other acquisition costs (24) - - (24) - (24) (1) (25)
Change in third-party interests in consolidated funds - - - - - - (371) (371)
Other operating and administrative expenses (7) - - (7) (274) (281) (15) (296)
Finance costs - - - - (10) (10) - (10)
Total expenses (45) (2,589) (3) (2,637) (284) (2,921) (387) (3,308)
Income tax expense attributable to policyholder returns (59) - - (59) - (59) - (59)
Profit before tax attributable to shareholder returns 207 48 37 292 (274) 18 - 18
Adjusting items:
Impact of acquisition and disposal-related accounting - - - - 19 19
Business transformation costs - - - - 12 12
Skilled Person Review - - - - 2 2
Exchange rate movement (ZAR/GBP) - (1) - (1) - (1)
Policyholder tax adjustments 38 - - 38 - 38
Finance costs - - - - 9 9
Adjusting items 38 (1) - 37 42 79
Adjusted profit before tax 245 47 37 329 (232) 97
(1)The APMs "Net management fees", "Other revenue", "Investment revenue",
"Total net revenue" and "Operating expenses" are commented on within the
Financial review.
(2)Consolidation of funds shows the grossing up impact to the Group's income
and expenses as a result of the consolidation of funds requirements, as
described within note 5(a) to the Group's 2024 Annual Report. This grossing up
is excluded from the Group's adjusted profit.
(3)Reported within net management fees, investment return of £30 million
represents £19 million interest income on investments held for the benefit of
policyholders and £11 million net interest income on client money balances.
Change in investment contract liabilities of £14 million represents the
amount of interest income paid to policyholders. The net balance of £16
million of interest income on customer balances was retained by the Group for
the six months to 30 June 2024. The £40 million investment return less £3
million change in investment contract liabilities paid to customers on
transactional cash balances, as reported within investment revenue, represents
£37 million of interest income on shareholder cash and cash equivalents.
6: Segment information
6(a): Segment presentation
The Group has two operating segments: High Net Worth and Affluent. The
segments used for reporting purposes are consistent with the structure and
management of the Group. Head Office includes certain revenues and central
costs that are not allocated to the segments.
Adjusted profit before tax is an APM reported to the Group's management and
the Board of Quilter plc. The segment information in this note reflects the
adjusted and IFRS profit measures for each operating segment as provided to
management and the Board. Management and the Board use additional performance
indicators to assess the performance of each of the segments, including net
client cash flows, assets under management and administration, total net
revenue and operating margin. Income is analysed in further detail for each
operating segment in note 6(b).
Consistent with internal reporting, income and expenses that are not directly
attributable to a particular segment are allocated between segments where
appropriate. The Group accounts for inter-segment income and transfers as if
the transactions were with third parties at current market prices.
High Net Worth
This segment comprises Quilter Cheviot and Quilter Cheviot Financial Planning.
Quilter Cheviot provides discretionary investment management, predominantly in
the United Kingdom, with bespoke investment portfolios tailored to the
individual needs of high‑net‑worth clients, charities, companies and
institutions through a network of branches in London and the regions.
Investment management services are also provided by operations in the Channel
Islands and Ireland.
Affluent
This segment comprises Quilter Investment Platform, Quilter Investors, Quilter
Financial Planning and NuWealth.
Quilter Investment Platform is a leading investment platform provider of
advice-based wealth management products and services in the UK, which serves
an affluent client base through advised multi-channel distribution.
Quilter Investors is a leading provider of investment solutions in the UK
multi-asset market. It develops and manages investment solutions in the form
of funds for the Group and third-party clients. It has several fund ranges
which vary in breadth of underlying asset class. The investment management of
the Quilter Investors fund range has been delegated to Quilter Investment
Platform from 1 January 2025.
Quilter Financial Planning is a restricted and independent financial adviser
network providing mortgage and financial planning advice and financial
solutions for both individuals and businesses through a network of
intermediaries. It operates across all markets, from wealth management and
retirement planning advice through to dealing with property wealth and
personal and business protection needs.
NuWealth is the developer of a fintech platform through which customers can
build investment portfolios. The NuWealth platform provides access to savings
and investments and is particularly aimed at people starting to invest who are
looking for additional help and guidance, with the option to work with a
financial adviser later in their investment journey.
Head Office
In addition to the Group's two operating segments, Head Office comprises the
investment return on centrally held assets, central support function expenses,
central core structural borrowings and certain tax balances.
6(b): Adjusted profit statement - segment information
The table below presents the Group's operations split by operating segment,
reconciling IFRS profit or loss to adjusted profit before tax. The Total
column reconciles to the consolidated statement of comprehensive income.
£m
Operating segments
Six months 2025 Notes Affluent High Head Office Consolidation adjustments(1) Total
Net Worth
Income
Premium-based fees 33 11 - - 44
Fund-based fees 178 93 - (46) 225
Fixed fees 1 - - - 1
Other fee and commission income 41 - - - 41
Fee income and other income from service activities 253 104 - (46) 311
Investment return(2) 1,785 9 16 430 2,240
Other income 52 - - (40) 12
Segment income 2,090 113 16 344 2,563
Expenses
Change in investment contract liabilities(2) (1,752) - - - (1,752)
Fee and commission expenses and other acquisition costs (26) - - (3) (29)
Change in third-party interests in consolidated funds - - - (368) (368)
Other operating and administrative expenses (205) (100) (18) 18 (305)
Finance costs (1) - (18) 9 (10)
Segment expenses (1,984) (100) (36) (344) (2,464)
Reversal of impairment of investments in associates - - 1 - 1
Profit/(loss) before tax 106 13 (19) - 100
Income tax expense attributable to policyholder returns (38) - - - (38)
Profit/(loss) before tax attributable to shareholder returns 68 13 (19) - 62
Adjusting items:
Impact of acquisition and disposal-related accounting 5(b)(i) 5 6 - - 11
Business transformation costs 5(b)(ii) 5 5 7 - 17
Customer remediation exercise 5(b)(iv) 1 - - - 1
Finance costs 5(b)(vii) - - 9 - 9
Adjusting items before tax 11 11 16 - 38
Adjusted profit/(loss) before tax 79 24 (3) - 100
(1)Consolidation adjustments comprise the elimination of inter-segment
transactions and the consolidation of investment funds.
(2)Investment return and change in investment contract liabilities includes
net £14 million of interest income on customer cash and cash equivalents
retained by the Group. Investment return total also includes £32 million of
interest income on shareholder cash and cash equivalents.
£m
Operating segments
Six months 2024 Notes Affluent High Head Office Consolidation adjustments(1) Total
Net Worth
Income
Premium-based fees 35 9 - - 44
Fund-based fees 167 91 - (39) 219
Fixed fees 1 - - - 1
Other fee and commission income 22 - - - 22
Fee income and other income from service activities 225 100 - (39) 286
Investment return(2) 2,638 11 16 420 3,085
Other income 48 1 1 (36) 14
Segment income 2,911 112 17 345 3,385
Expenses
Change in investment contract liabilities(2) (2,606) - - - (2,606)
Fee and commission expenses and other acquisition costs (25) - - - (25)
Change in third-party interests in consolidated funds - - - (371) (371)
Other operating and administrative expenses (195) (106) (17) 22 (296)
Finance costs (1) - (13) 4 (10)
Segment expenses (2,827) (106) (30) (345) (3,308)
Profit/(loss) before tax 84 6 (13) - 77
Income tax expense attributable to policyholder returns (59) - - - (59)
Profit/(loss) before tax attributable to shareholder returns 25 6 (13) - 18
Adjusting items:
Impact of acquisition and disposal-related accounting 5(b)(i) 3 16 - - 19
Business transformation costs 5(b)(ii) 4 3 5 - 12
Skilled Person Review 5(b)(iii) 2 - - - 2
Exchange rate movements (ZAR/GBP) 5(b)(v) - - (1) - (1)
Policyholder tax adjustments 5(b)(vi) 38 - - - 38
Finance costs 5(b)(vii) - - 9 - 9
Adjusting items before tax 47 19 13 - 79
Adjusted profit before tax 72 25 - - 97
(1)Consolidation adjustments comprise the elimination of inter-segment
transactions and the consolidation of investment funds.
(2)Investment return and change in investment contract liabilities includes
net £16 million interest income on customer cash and cash equivalents
retained by the Group. Investment return total also includes £37 million
interest income on shareholder cash and cash equivalents.
7: Tax
£m
Six months Six months
2025 2024
Current tax
United Kingdom 29 28
Overseas tax 1 -
Total current tax charge 30 28
Deferred tax
Origination and reversal of temporary differences 25 37
Adjustments to deferred tax in respect of prior periods (1) (1)
Total deferred tax charge 24 36
Total tax charged 54 64
Attributable to policyholder returns 38 59
Attributable to shareholder returns 16 5
Total tax charged 54 64
Policyholder tax
Certain products are subject to tax on policyholders' investment returns. This
"policyholder tax" is an element of total tax expense. To make the tax expense
more meaningful, tax attributable to policyholder returns and tax attributable
to shareholder returns are shown separately in the condensed consolidated
interim statement of comprehensive income.
The tax attributable to policyholder returns is the amount payable in the
period plus the movement of amounts expected to be payable in future periods.
The remainder of the tax expense is attributed to shareholder returns.
The Group's income tax charge was £54 million for the six months to 30 June
2025 (30 June 2024: £64 million tax charge). The income tax charge can vary
significantly period-on-period because of market volatility and the impact
this has on policyholder tax.
The recognition of the income received from policyholders to fund the
policyholder tax liability (which is included within the Group's income) has
historically been volatile due to timing differences between the recognition
of policy deductions and credits and the corresponding policyholder tax
expense, resulting in the need for significant adjustments to the adjusted
profit to remove these distortions. The Group made changes to the Group's unit
pricing policy at the end of 2024 relating to policyholder tax charges which
has reduced volatility in these timing differences.
Market movements for the six months to 30 June 2025 resulted in investment
gains of £169 million on products subject to policyholder tax. The gain is a
component of the total "investment return" gain of £2,240 million shown in
the consolidated statement of comprehensive income. The tax impact of the
£169 million investment return gain is a significant element of the £38
million tax charge attributable to policyholder returns for the six months to
30 June 2025 (30 June 2024: £59 million charge).
Pillar II taxes
Pillar II legislation is applicable in the UK, establishing a Pillar II
minimum effective tax rate of 15%. The legislation implements a Multinational
Top-up Tax ("MTT") and a Domestic Top-up Tax ("DTT"). The Group has applied
the exemption under IAS 12.4A and accordingly will not recognise or disclose
information about deferred tax assets and liabilities related to Pillar II
income taxes.
The majority of the Group's profits arise in countries with tax rates above
15%. The position in respect of these rules in each of the Group's main
territories is summarised below.
UK
The Group has assessed that its Pillar II UK effective tax rate exceeds the
15% minimum rate and therefore there is no additional liability in relation to
the UK.
The scope of the MTT means that a top-up tax charge may also arise in the UK
on profits earned in countries with lower tax rates in which the Group
operates, subject to a local qualifying domestic minimum tax. The Group's main
non-UK operations are in Jersey and Ireland, where local minimum taxes have
been introduced and therefore no additional tax is expected in the UK on these
operations.
Jersey, Guernsey and the Isle of Man
The three Crown Dependencies have introduced local minimum taxes effective
from 1 January 2025. The Group's main operations in these jurisdictions are in
Jersey where a Multinational Corporate Income Tax ("MCIT") has been
introduced. The effective tax rate in Jersey is 10% and therefore a MCIT
liability of £0.1 million arises on its profits. This does not have a
material impact on the Group's tax charge.
Ireland
Ireland has a qualifying domestic minimum tax. The Group's effective tax rate
in Ireland is 15% and therefore no additional tax arises in Ireland in the six
months to 30 June 2025.
Other
The Group has assessed there are no material Pillar II tax charges in any
other countries in which it had a presence during the period to 30 June 2025.
8: Earnings per share
The Group calculates earnings per share ("EPS") on a number of different
bases. IFRS requires the calculation of basic and diluted EPS. Adjusted EPS
reflects earnings that are consistent with the Group's adjusted profit measure
and Headline earnings per share ("HEPS") is a requirement of the Johannesburg
Stock Exchange.
8(a): Weighted average number of Ordinary Shares
The table below summarises the calculation of the weighted average number of Ordinary Shares for the purposes of calculating basic and diluted earnings per share for each profit measure (IFRS, adjusted profit and Headline earnings).
The bases for the calculation of the Group's EPS are disclosed in note 5(t) of
the Group's 2024 Annual Report.
Million
Six months Six months
2025 2024
Weighted average number of Ordinary Shares 1,404 1,404
Own shares including those held in consolidated funds and employee benefit (55) (63)
trusts
Basic weighted average number of Ordinary Shares 1,349 1,341
Adjustment for dilutive share awards and options 39 41
Diluted weighted average number of Ordinary Shares 1,388 1,382
8(b): Basic and diluted EPS (IFRS and adjusted profit)
£m
Notes Six months Six months
2025 2024
Profit after tax 46 13
Total adjusting items before tax 5(a) 38 79
Tax on adjusting items (9) 18
Less: policyholder tax adjustments - (38)
Adjusted profit after tax 75 72
Pence
Post-tax profit Six months Six months
measure used 2025 2024
Basic EPS IFRS profit 3.4 1.0
Diluted EPS IFRS profit 3.3 0.9
Adjusted basic EPS Adjusted profit 5.6 5.4
Adjusted diluted EPS Adjusted profit 5.4 5.2
8(c): Headline earnings per share
+ + £m
Six months 2025 Six months 2024
Gross Net of tax Gross Net of tax
Profit 46 13
Adjusted for:
- less reversal of impairment of investments in associates (1) (1) - -
- add back loss on disposal of property, plant and equipment 1 1 - -
Headline earnings 46 13
Headline basic EPS (pence) 3.4 1.0
Headline diluted EPS (pence) 3.3 0.9
9: Dividends
£m
Payment Six months Six months
date 2025 2024
2023 Final Dividend paid - 3.7p per Ordinary Share 28 May 2024 - 50
2024 Final Dividend paid - 4.2p per Ordinary Share 27 May 2025 57 -
Dividends paid to Ordinary Shareholders 57 50
Final and Interim Dividends paid to Ordinary Shareholders are calculated using
the number of shares in issue at the record date less own shares held in
employee benefit trusts.
10: Goodwill
Allocation of goodwill to cash-generating units ("CGUs") and consideration of
the need for an impairment review
Goodwill is monitored by management at the level of the Group's two operating
segments: Affluent and High Net Worth. Both operating segments represent a
group of CGUs.
£m
30 June 31 December
2025 2024
Goodwill (net carrying amount)
Affluent 225 224
High Net Worth 83 83
Total goodwill 308 307
Consideration of the need for an impairment review
Goodwill in both the Affluent and High Net Worth CGU groups is tested for
impairment annually, or earlier if an indicator of impairment exists, by
comparing the carrying value of the CGU group to which the goodwill relates to
the recoverable value of that CGU group, being the higher of that CGU group's
value-in-use or fair value less costs to sell. If applicable, an impairment
charge is recognised when the recoverable amount is less than the carrying
value. Goodwill impairment indicators can include sudden stock market falls,
the absence of positive Net Client Cash Flows ("NCCF"), significant falls in
profits and significant increases in the discount rate.
During the six months to 30 June 2025, management considers there to be no
indicators of impairment for the Affluent and High Net Worth CGU groups. The
positive movements in equity markets and resulting increase in AuMA have
contributed to higher revenues and this, together with continued cost
discipline, has led to adjusted profit before tax of £100 million, which is a
3% increase from the prior period to 30 June 2024 of £97 million. NCCF has
also been stronger compared to the prior period due to higher gross sales.
11: Financial investments
The table below analyses the investments and securities that the Group invests
in, either on its own proprietary behalf (shareholder funds) or on behalf of
third parties (policyholder funds).
£m
30 June 31 December
2025 2024
Government and government-guaranteed securities 180 171
Other debt securities, preference shares and debentures 2,808 2,644
Equity securities 12,141 11,034
Pooled investments 49,049 45,510
Other 1 1
Total financial investments 64,179 59,360
The financial investments are recoverable within 12 months, apart from £6
million (2024: £6 million) which is recoverable after 12 months. The
financial investments recoverability profile is based on the intention with
which the financial assets are held. The assets held on behalf of
policyholders cover the liabilities for linked investment contracts, all of
which can be withdrawn by policyholders on demand.
12: Categories of financial instruments
The analysis of financial assets and liabilities into categories as defined in
IFRS 9 Financial Instruments is set out in the following tables. Assets and
liabilities of a non-financial nature, or financial assets and liabilities
that are specifically excluded from the scope of IFRS 9, are reflected in the
non‑financial assets and liabilities category.
For information about the methods and assumptions used in determining fair
value, refer to note 13. The Group's exposure to various risks associated with
financial instruments is discussed in note 38 to the Group's 2024 Annual
Report. During the period, there have been no material changes in the Groups
exposure to those risks.
30 June 2025
£m
Measurement basis Fair value
Mandatorily at FVTPL Designated at FVTPL Amortised cost Non-financial assets and liabilities Total
Assets
Loans and advances - - 60 - 60
Financial investments 64,178 1 - - 64,179
Trade, other receivables and other assets - - 647 44 691
Derivative assets 79 - - - 79
Cash and cash equivalents 1,342 - 823 - 2,165
Total assets that include financial instruments 65,599 1 1,530 44 67,174
Total other non-financial assets - - - 607 607
Total assets 65,599 1 1,530 651 67,781
Liabilities
Investment contract liabilities - 56,291 - - 56,291
Third-party interests in consolidated funds 8,678 - - - 8,678
Borrowings and lease liabilities - - 274 - 274
Trade, other payables and other liabilities - 1 808 86 895
Derivative liabilities 23 - - - 23
Total liabilities that include financial instruments 8,701 56,292 1,082 86 66,161
Total other non-financial liabilities - - - 212 212
Total liabilities 8,701 56,292 1,082 298 66,373
31 December 2024
£m
Measurement basis Fair value
Mandatorily at FVTPL Designated at FVTPL Amortised cost Non-financial assets and liabilities Total
Assets
Loans and advances - - 56 - 56
Financial investments 59,359 1 - - 59,360
Trade, other receivables and other assets - - 370 48 418
Derivative assets 26 - - - 26
Cash and cash equivalents 1,215 - 734 - 1,949
Total assets that include financial instruments 60,600 1 1,160 48 61,809
Total other non-financial assets - - - 639 639
Total assets 60,600 1 1,160 687 62,448
Liabilities
Investment contract liabilities - 51,758 - - 51,758
Third-party interests in consolidated funds 8,225 - - - 8,225
Borrowings and lease liabilities - - 275 - 275
Trade, other payables and other liabilities - 1 399 106 506
Derivative liabilities 53 - - - 53
Total liabilities that include financial instruments 8,278 51,759 674 106 60,817
Total other non-financial liabilities - - - 208 208
Total liabilities 8,278 51,759 674 314 61,025
13: Fair value methodology
This section explains the judgements and estimates made in determining the
fair values of financial instruments that are recognised and measured at fair
value in the financial statements. Classifying financial instruments into the
three levels of the fair value hierarchy (see note 13(b)) provides an
indication of the reliability of inputs used in determining fair value.
13(a): Determination of fair value
The fair value of financial instruments that are actively traded in organised
financial markets is determined by reference to quoted market exit prices for
assets and offer prices for liabilities, at the close of business on the
reporting date, without any deduction for transaction costs:
· for units in unit trusts and shares in open-ended investment
companies, fair value is determined by reference to published quoted prices
representing exit values in an active market;
· for equity and debt securities not actively traded in organised
markets and where the price cannot be retrieved, the fair value is determined
by reference to similar instruments for which market observable prices exist;
· for assets that have been suspended from trading on an active
market, the last published price is used. Many suspended assets are still
regularly priced. At the reporting date, all suspended assets are assessed for
impairment; and
· where the assets are private equity investments or within
consolidated investment funds, the valuation is based on the latest available
set of audited financial statements, or if more recent is available, reports
from Investment Managers or professional valuation experts on the value of the
underlying assets of the private equity investment or fund.
During the six months to 30 June 2025, there have been no significant changes
in the valuation techniques applied when valuing financial instruments. Where
assets are valued by the Group, the general principles applied to those
instruments measured at fair value are outlined below:
Financial investments
Financial investments include government and government-guaranteed securities,
listed and unlisted debt securities, preference shares and debentures, listed
and unlisted equity securities, listed and unlisted pooled investments (see
below), short-term funds and securities treated as investments and certain
other securities.
Pooled investments represent the Group's holdings of shares/units in
open-ended investment companies, unit trusts, mutual funds and similar
investment vehicles. Pooled investments are recognised at fair value. The fair
values of pooled investments are based on widely published prices that are
regularly updated.
Other financial investments that are measured at fair value use observable
market prices where available. In the absence of observable market prices,
these investments and securities are fair valued using various approaches
including valuations based on discounted cash flows and earnings before
interest, tax, depreciation and amortisation multiples.
Derivatives
The fair value of derivatives is determined with reference to the
exchange-traded prices of the specific instruments. The fair value of
over-the-counter forward foreign exchange contracts is determined by reference
to the relevant exchange rates.
Investment contract liabilities
The fair value of the investment contract liabilities is determined with
reference to the underlying funds that are held by the Group.
Third-party interests in consolidated funds
Third-party interests in consolidated funds are measured at the attributable
net asset value of each fund.
13(b): Fair value hierarchy
Fair values are determined according to the following hierarchy:
Description of hierarchy Types of instruments classified in the respective levels
Level 1 - quoted market prices: financial assets and liabilities with quoted Listed equity securities, government securities and other listed debt
prices for identical instruments in active markets. securities and similar instruments that are actively traded, actively traded
pooled investments, certain quoted derivative assets and liabilities and
investment contract liabilities directly linked to Level 1 financial assets.
Level 2 - valuation techniques using observable inputs: financial assets and Unlisted equity and debt securities where the valuation is based on models
liabilities with quoted prices for similar instruments in active markets or involving no significant unobservable data.
quoted prices for identical or similar instruments in inactive markets and
financial assets and liabilities valued using models where all significant Over-the-counter derivatives, certain privately placed debt instruments and
inputs are observable. third-party interests in consolidated funds which meet the definition of Level
2 financial instruments.
Level 3 - valuation techniques using significant unobservable inputs: Unlisted equity and securities with significant unobservable inputs,
financial assets and liabilities valued using valuation techniques where one securities where the market is not considered sufficiently active, including
or more significant inputs are unobservable. certain inactive pooled investments.
The judgement as to whether a market is active may include, for example,
consideration of factors such as the magnitude and frequency of trading
activity, the availability of prices and the size of bid/offer spreads. In
inactive markets, obtaining assurance that the transaction price provides
evidence of fair value or determining the adjustments to transaction prices
that are necessary to measure the fair value of the asset or liability
requires additional work during the valuation process.
The majority of valuation techniques employ only observable data and so the
reliability of the fair value measurement is high. Certain financial assets
and liabilities are valued on the basis of valuation techniques that feature
one or more significant inputs that are unobservable and, for them, the
derivation of fair value is more judgemental. A financial asset or liability
in its entirety is classified as valued using significant unobservable inputs
if a significant proportion of that asset or liability's carrying amount is
driven by unobservable inputs.
In this context, 'unobservable' means that there is little or no current
market data available from which to determine the price at which an arm's
length transaction would be likely to occur. It generally does not mean that
there is no market data available at all upon which to base a determination of
fair value. Furthermore, in some cases the majority of the fair value derived
from a valuation technique with significant unobservable data may be
attributable to observable inputs.
13(c): Transfer between fair value hierarchies
The Group deems a transfer to have occurred between Level 1 and Level 2 or
Level 3 when an actively traded primary market ceases to exist for that
financial instrument. A transfer between Level 2 and Level 3 occurs when one
or more of the significant inputs used to determine the fair value of the
instrument become unobservable. Transfers from Levels 3 or 2 to Level 1 are
also possible when assets become actively priced.
There were £nil transfers of financial investments between Level 1 and Level
2 during the six months to 30 June 2025 (31 December 2024: £nil).
See note 13(e) for the reconciliation of Level 3 financial instruments.
13(d): Financial assets and liabilities measured at fair value, classified according to the fair value hierarchy
The majority of the Group's financial assets are measured using quoted market
prices for identical instruments in active markets (Level 1) and there have
been no significant changes during the period.
The linked assets are held to cover the liabilities for linked investment
contracts. The difference between the value of linked assets and that of
linked liabilities is mainly due to short-term timing differences between
policyholder premiums being received and invested in advance of policies being
issued, and tax liabilities within funds which are reflected within the
Group's tax liabilities.
Differences between assets and liabilities within the respective levels of the
fair value hierarchy also arise due to the mix of underlying assets and
liabilities within consolidated funds. In addition, third-party interests in
consolidated funds are classified as Level 2.
The tables below analyse the Group's financial assets and liabilities measured
at fair value by the fair value hierarchy described in note 13(b).
£m
30 June 2025 Level 1 Level 2 Level 3 Total
Financial investments 53,872 10,273 34 64,179
Cash and cash equivalents 1,342 - - 1,342
Derivative assets - 79 - 79
Total financial assets measured at fair value through profit or loss 55,214 10,352 34 65,600
Third-party interests in consolidated funds - 8,678 - 8,678
Derivative liabilities - 23 - 23
Investment contract liabilities 56,267 - 24 56,291
Other liabilities - 1 - 1
Total financial liabilities measured at fair value through profit or loss 56,267 8,702 24 64,993
£m
31 December 2024 Level 1 Level 2 Level 3 Total
Financial investments 49,052 10,292 16 59,360
Cash and cash equivalents 1,215 - - 1,215
Derivative assets - 26 - 26
Total financial assets measured at fair value through profit or loss 50,267 10,318 16 60,601
Third-party interests in consolidated funds - 8,225 - 8,225
Derivative liabilities - 53 - 53
Investment contract liabilities 51,745 - 13 51,758
Other liabilities - 1 - 1
Total financial liabilities measured at fair value through profit or loss 51,745 8,279 13 60,037
13(e): Level 3 fair value hierarchy disclosure
The majority of the assets classified as Level 3 are held within linked
policyholder funds. Where this is the case, all of the investment risk
associated with these assets is borne by policyholders and the value of these
assets is exactly matched by a corresponding liability due to policyholders.
The Group bears no risk from a change in the market value of these assets
except to the extent that it has an impact on fees earned.
Level 3 assets also include investments within consolidated funds attributable
to the third-party interest in those funds. The Group bears no risk from a
change in the market value of these assets except to the extent that it has an
impact on fees earned. Any changes in market value are matched by a
corresponding Level 2 liability within third-party interests in consolidated
funds.
The table below reconciles the opening balance of Level 3 financial assets to
the closing balance at each period end:
£m
30 June 31 December
2025 2024
Balance at 1 January 16 33
Fair value gains credited to profit or loss(1) - 4
Sales (2) (17)
Transfers in 23 8
Transfers out (3) (12)
Total Level 3 financial assets at the end of the period 34 16
Unrealised fair value losses recognised in profit or loss relating to assets - (3)
held at the period end
(1)Included in Investment return.
All of the assets that are classified as Level 3 are suspended funds for each
of the periods presented.
Transfers into Level 3 assets in the current period total £23 million (31
December 2024: £8 million). This is mainly due to suspended funds previously
shown within Level 1. Suspended funds are valued based on external valuation
reports received from fund managers. Transfers out of Level 3 assets in the
current period of £3 million, (31 December 2024: £12 million) result from a
transfer to Level 1 assets relating to assets that are now being actively
repriced (that were previously stale) and where fund suspensions have been
lifted.
The table below reconciles the opening balance of Level 3 financial
liabilities to the closing balance at each period end:
£m
30 June 31 December
2025 2024
Balance at 1 January 13 24
Fair value gains credited to profit or loss(1) - (2)
Transfers in 14 -
Transfers out (3) (9)
Total Level 3 financial liabilities at the end of the period 24 13
Unrealised fair value losses recognised in profit or loss relating to - (2)
liabilities at the period end
(1)Included in Investment return.
13(f): Effect of changes in significant unobservable assumptions to reasonable
alternatives
Details of the valuation techniques applied to the different categories of
financial instruments can be found in note 13(a) above, including the
valuation techniques applied when significant unobservable assumptions are
used to value Level 3 assets.
For Level 3 assets and liabilities, no reasonable alternative assumptions are
applicable and the Group therefore performs a sensitivity test of an aggregate
10% change in the value of the financial asset or liability (31 December
2024: 10%), representing a reasonable alternative judgement in the context of
the current macroeconomic environment in which the Group operates. It is
therefore considered that the impact of this sensitivity will be in the range
of £2 million to the reported fair value of Level 3 assets, both favourable
and unfavourable (31 December 2024: £2 million).
13(g): Fair value hierarchy for assets and liabilities not measured at fair
value
Certain financial instruments of the Group are not carried at fair value. The
carrying values of these are considered reasonable approximations of their
respective fair values as they are either short term in nature or are repriced
to current market rates at frequent intervals.
14: Cash and cash equivalents
Analysis of cash and cash equivalents
£m
30 June 31 December
2025 2024
Cash at bank 328 369
Money market funds 1,342 1,215
Cash and cash equivalents in consolidated funds 495 365
Total cash and cash equivalents per statement of cash flows 2,165 1,949
The Group's management does not consider that the cash and cash equivalents
balance arising due to consolidation of funds of £495 million (31 December
2024: £365 million) is available for use in the Group's day-to-day
operations. The remainder of the Group's cash and cash equivalents balance of
£1,670 million (31 December 2024: £1,584 million) is considered to be
available for general use by the Group for the purposes of the disclosures
required under IAS 7 Statement of Cash Flows. This balance includes
policyholder cash as well as cash and cash equivalents held by regulated
subsidiaries to meet their capital and liquidity requirements.
15: Ordinary Share capital
At 30 June 2025, the Company's equity capital comprises 1,404,105,498 Ordinary
Shares of 8 1/6 pence each with an aggregated nominal value of £114,668,616
(31 December 2024: 1,404,105,498 Ordinary Shares of 8 1/6 pence each with an
aggregated nominal value of £114,668,616). All Ordinary Shares have been
called up and fully paid.
16: Provisions
£m
30 June 2025 Customer remediation exercise provision Compensation Sale of subsidiaries provision Property provisions Clawback and other provisions Total
provisions
Balance at 1 January 76 14 1 7 13 111
Charge to profit or loss - 3 - - 3 6
Used during the period (7) (2) - - (3) (12)
Unused amounts reversed - (8) (1) (1) - (10)
Impact of discounting 1 - - - - 1
Balance at 30 June 2025 70 7 - 6 13 96
£m
31 December 2024 Customer remediation exercise provision Compensation Sale of subsidiaries provision Property provisions Clawback and other provisions Total
provisions
Balance at 1 January - 17 3 10 16 46
Charge to profit or loss 76 10 - - 4 90
Used during the year - (5) (2) (2) (6) (15)
Unused amounts reversed - (8) - (1) (1) (10)
Balance at 31 December 2024 76 14 1 7 13 111
Customer remediation exercise provision
At 30 June 2025, the Customer remediation exercise provision was £70 million
(31 December 2024: £76 million).
Based on the results of the Skilled Person Review at 31 December 2024, which
was not yet complete at that date, together with other evidence available, the
Group considered that a customer remediation exercise in relation to ongoing
advice would likely be required. As such, a present obligation existed and a
provision of £76 million was recognised as at 31 December 2024 relating to
potential remediation following the review of the delivery of ongoing advice
services by the Appointed Representative firms in the Quilter Financial
Planning network. A reasonable estimate of the provision was determined based
upon a potential customer remediation exercise, whereby the population of
customers who are at the highest likelihood of having not received the
expected level of service from their adviser would be identified. These
customers would be invited to join the review if they believe that they have
not received ongoing advice and if they wish to have their situation reviewed
by Quilter. Appropriate and proportionate redress would be paid to impacted
customers. Following the initial draft results of the statistically reliable
representative cohort of customers undertaken by the Skilled Person, together
with other available evidence, the Group determined a reasonable estimate of a
provision for the potential cost to settle the obligation based upon this
approach, considering uncertainties and based upon key assumptions. The draft
results from the Skilled Person Review were extrapolated from their sample to
the population of all customers who paid an ongoing advice charge between 2018
and 2023 (inclusive of both years). An independent expert reviewed the results
of the Skilled Person Review on a sample basis to determine, based on the
available evidence, the cases where the expected level of service from their
adviser may not have been received, and these results were considered in
determining the provision. An estimate of the response rate of customers to
join the review, and of the associated administrative costs, were determined
based upon experience from previous past business reviews performed by the
Group, and assumptions on the number of customers who may be subject to the
review process.
The provision recognised, based upon the approach described above, includes an
estimate of the refund of ongoing advice charges for customers impacted,
interest payable to customers at rates in line with the Financial Ombudsman
Service current interest rates, and administrative costs, both internal and
external, to perform the potential customer remediation exercise. Customer
redress is expected to be calculated and paid to relevant customers over an
18--‑month period to December 2026. Of the total £70 million (31 December
2024: £76 million) provision outstanding, £48 million (31 December 2024:
£33 million) is estimated to be payable within one year. Where amounts are
estimated to be payable after 12 months, these payments have been discounted
to their present value. The discount rate used is not a significant estimate
given the short time period over which payments are expected to be made.
The Skilled Person's report was finalised during the first half of 2025.
Discussions with the FCA remain ongoing. During the period, no material new
information has been presented which would require the basis of the
calculation of the provision to be changed. An expense of £1 million has been
recognised during the period for the unwind of the discount rate when
calculating the present value of future costs of the customer remediation
exercise provision due to the passage of time. £7 million of the provision
has been utilised during the period in relation to administrative costs. No
customers have been remediated during the period in connection with the
potential customer remediation exercise. The Group considers that the
provision recognised as at 30 June 2025 remains appropriate.
The following table presents the potential change to the provision balance at
30 June 2025 as a result of movements in the key assumptions:
£m
30 June 2025 31 December 2024
Increase Decrease Increase Decrease
Percentage point change in proportion of population where satisfactory service 15 (14) 16 (16)
evidence is unavailable of 10%
Percentage point change in response rate of 10% 14 (14) 14 (14)
Change in administrative costs of 10% 3 (3) 3 (3)
Significant uncertainty exists regarding the scope and method of a potential
remediation exercise, which will be informed by further discussions with the
FCA, including the customer cohorts to be involved within the exercise and the
customer and Appointed Representative firm contact strategies, the proportion
of the population of customers charged a fee where satisfactory evidence of
servicing is unavailable, the response rate of customers contacted and the
administrative costs. The financial impact could be materially higher or lower
than the amount of the provision.
Separate to the Skilled Person Review and the related provision for the
potential customer remediation exercise, where the Group's regular adviser
oversight controls have determined, based on the available evidence, that a
customer may not have received the servicing that they have paid for, or where
the Group has received complaints from customers regarding ongoing servicing,
this has been investigated, and, where appropriate, remediation has been
undertaken and recognised as a normal business as usual expense.
Compensation provisions
At 30 June 2025, compensation provisions total £7 million (31 December 2024:
£14 million). The net reduction of £7 million during the period consists of
additional charges to profit or loss of £3 million, compensation and
professional fees payments of £2 million and £8 million release of unused
amounts following further review work completed during the period.
Compensation provisions comprise the following:
Lighthouse pension transfer advice provision of £nil (31 December 2024: £1
million)
A further review of a sample of Lighthouse DB to DC pension transfer advice
cases not relating to the British Steel Pension Scheme has been conducted by
an independent expert to identify any cases of unsuitable DB to DC pension
transfer advice. The review was conducted over a past business review process,
and the sample was selected on a risk-based approach. The review of this
sample identified some additional cases where customer redress was required.
During 2024, redress payments of £1 million were made to customers, £1
million of professional fees were paid, and £3 million of the provision
related to customer redress was unused and reversed. This was because of the
redress calculations performed for customers being lower than previously
forecast, due to changes in the assumptions used to perform the calculations
and market movements of the pension scheme values during 2024.
In the period to 30 June 2025, redress payments and associated professional
fees of £1 million were made to customers and the independent expert, with
the liability at 31 December 2024 utilised in full and settled. The review
concluded in June 2025.
Compensation provisions (other) of £7 million (31 December 2024: £13
million)
Other compensation provisions of £7 million include amounts relating to
internally conducted past business reviews, the cost of correcting
deficiencies in policy administration systems, including redress, any
associated litigation costs and the related costs to compensate current and
former policyholders and customers. This provision represents management's
best estimate of expected outcomes based upon past experience, and a review of
the details of each case. Due to the nature of the provision, the timing of
the expected cash outflows is uncertain. The best estimate of the timing of
outflows is that the majority of the balance is expected to be settled within
12 months.
A provision of £3 million, included within the balance, has been recognised
at 30 June 2025 (31 December 2024: £7 million) relating to internally
conducted past business reviews of ongoing servicing within Quilter Financial
Planning, as part of the Group's normal business operations. During the period
to 30 June 2025, redress payments of £1 million were made to customers, and
£3 million of the provision related to customer redress was unused and
reversed. The estimate of the provision has been determined for the current
status of the past business reviews and redress estimated based upon an
initial analysis of adviser servicing records. Customer redress is expected to
be calculated and paid to relevant customers during 2025.
A provision of £1 million, included within the balance, has been recognised
at 30 June 2025 (31 December 2024: £2 million) relating to potentially
unsuitable DB to DC pension transfer advice provided by adviser businesses
other than Lighthouse. The estimate of the provision has been updated for the
current status of the past business reviews and redress estimated based upon
the customer redress calculations performed to date, and £1 million of the
provision related to customer redress was unused and reversed. Customer
redress is expected to be paid to relevant customers during the third quarter
of 2025.
The Group estimates a reasonably possible change of +/- £2 million from the
£7 million balance, based upon a review of the cases and the range of
potential outcomes for the customer redress payments.
Sale of subsidiaries provision
The sale of subsidiaries provision totals £nil at 30 June 2025 (31 December
2024: £1 million), and includes the following:
Provision for tax warranty claim £nil (31 December 2024: £1 million)
The provision is for warranty claims relating to the sale of former
subsidiaries has been released following the conclusion of several tax audits
in Germany.
Property provisions
Property provisions total £6 million (31 December 2024: £7 million).
Property provisions represent the discounted value of expected future costs of
reinstating leased property to its original condition at the end of the lease
term, and any onerous commitments which may arise in cases where a leased
property is no longer fully used by the Group. The estimate is based upon
property location, size of property and an estimate of the cost per square
foot. Property provisions are used or released when the reinstatement
obligations are satisfied. The associated asset for the property provisions
relating to the cost of reinstating property is included within Property,
plant and equipment.
Of the £6 million provision outstanding, £nil (31 December 2024: £1
million) is estimated to be payable within one year. The majority of the
balance relates to leased properties which have a lease term maturity of more
than five years.
Clawback and other provisions
Clawback and other provisions total £13 million (31 December 2024: £13
million) and include amounts for the resolution of legal uncertainties and the
settlement of other claims raised by contracting parties and indemnity
commission provisions. Where the impact of discounting is material, provisions
are discounted at discount rates specific to the risks inherent in the
liability. The timing and final amounts of payments, particularly those in
respect of litigation claims and similar actions against the Group, are
uncertain and could result in adjustments to the amounts recorded.
Included within the balance at 30 June 2025 is £9 million (31 December 2024:
£10 million) of clawback provisions in respect of potential refunds due to
product providers on indemnity commission within the Quilter Financial
Planning business. This provision, which is estimated and charged as a
reduction of revenue at the point of sale of each policy, is based upon
assumptions determined from historical experience of the proportion of
policyholders cancelling their policies, which requires Quilter to refund a
portion of commission previously received to the product provider. Reductions
to the provision result from the payment of cash to product providers as
refunds or the recognition of revenue where a portion of the indemnity
commission is assessed as no longer payable. The provision has been assessed
at the reporting date and adjusted for the latest cancellation information
available. At 30 June 2025, an associated balance of £6 million recoverable
from brokers is included within Trade, other receivables and other assets (31
December 2024: £6 million).
The Group estimates a reasonably possible change of +/- £3 million, based
upon the potential range of outcomes for the proportion of cancelled policies
within the clawback provision, and a detailed review of the other provisions.
Of the total £13 million provision outstanding, £8 million is estimated to
be payable within one year (31 December 2024: £6 million).
17: Contingent liabilities and commitments
17(a): Contingent liabilities
The Group, in the ordinary course of business, enters into transactions that
expose it to tax, legal, regulatory and business risks. The Group recognises a
provision when it has a present obligation as a result of past events, and it
is probable that a transfer of economic benefits will be required to settle
the obligation and a reliable estimate of the amount can be made (see note
16). Possible obligations and known liabilities where no reliable estimate can
be made, or it is considered improbable that an outflow would result, are
reported as contingent liabilities.
The Group routinely monitors and assesses contingent liabilities arising from
matters such as business reviews, litigation, warranties and indemnities
relating to past acquisitions and disposals.
Tax
The Group is committed to conducting its tax affairs in accordance with the
tax legislation of the countries in which it operates and this includes
compliance with legislation related to levies, sales taxes and payroll
deductions.
The tax authorities in the countries in which the Group operates routinely
review historical transactions undertaken and tax law interpretations made by
the Group. All interpretations made by the Group are made with reference to
the specific facts and circumstances of the transaction and the relevant
legislation.
There are occasions where the Group's interpretation of tax law may be
challenged by the tax authorities. The consolidated financial statements
include provisions that reflect the Group's assessment of liabilities which
might reasonably be expected to materialise as part of their review. The Group
is satisfied that adequate provisions have been made to allow for the
resolution of tax uncertainties.
Complaints, disputes and regulations
The Group is committed to treating customers fairly and remains focused on
delivering good outcomes for customers to support them in meeting their
lifetime goals. During the normal course of business, from time to time, the
Group receives complaints and claims from customers including, but not limited
to, complaints to the Financial Ombudsman Service and legal proceedings,
enters into commercial disputes with service providers and other parties, and
is subject to discussions and reviews with regulators. The costs, including
legal costs, of these issues as they arise can be significant and, where
appropriate, provisions have been established.
Ongoing Advice Review
As disclosed in note 16, the Group has recognised a provision for a reasonable
estimate of the cost of a potential customer remediation exercise in relation
to ongoing advice. Until further discussions with the FCA are progressed,
there is uncertainty as to the nature, scope and form of any potential future
customer remediation exercise. This includes consideration of the customer
cohorts to be involved within a potential customer remediation exercise, and
the customer and Appointed Representative firm contact strategies.
In addition, where redress payments are made to customers, the Group has the
ability to seek appropriate reimbursement from the relevant Appointed
Representative firms who have been unable to demonstrate that the ongoing
advice service paid by the client was provided. Should the Group make payments
to customers, recompense to the Group can be sought from the relevant
Appointed Representative firm who has benefited from the majority of the
revenue recognised over the period of the servicing agreement. Any
reimbursement would not be recognised as an asset until such time as
recoverability became virtually certain, and would only be disclosed, but not
recognised, as a contingent asset if and when a cash inflow becomes probable.
17(b) Commitments
Investments in associates
The Group accounts for certain investments as Investments in associates. For a number of these associates, the Group has entered into contracts with the other shareholders with the intention of ultimately acquiring full ownership of these companies within the next four years subject to all of the relevant contractual provisions being satisfied.
The amount to be paid for any further investment by the Group would be determined based on the future financial performance of the relevant entities. As at 30 June 2025, the total amount of payments that may ultimately be required is estimated to be in the range of £20 million to £34 million. In the Group's condensed consolidated statement of financial position, these potential future payments have not been recognised as liabilities and the potential future shareholdings have not been recognised as assets.
18: Related party transactions
In the normal course of business, the Group enters into transactions with
related parties. Loans to related parties are conducted on an arm's length
basis and are not material to the Group's results. There were no transactions
with related parties during the current period or the prior period which had a
material effect on the results or financial position of the Group.
19: Events after the reporting date
Interim Dividend
On 5 August 2025, the Board declared an Interim Dividend of 2.0 pence per
Ordinary Share amounting to £27 million in total. The Interim Dividend will
be paid on 22 September 2025 to shareholders on the UK and South African share
registers. These condensed consolidated interim financial statements do not
reflect this dividend payable.
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