UK's Quilter H1 profit rises on higher management fee
UK's Quilter H1 profit rises on higher management fee
Overview
UK wealth manager's H1 core net inflows rose 32% yr/yr to £6.0 bln
Adjusted pre-tax profit for H1 grew 12% to £112 mln, adjusted EPS up 13%
Company completed £68.4 mln of planned £100 mln share buyback by July
Outlook
Quilter expects second half adjusted profit to be mid-single digit percentage above first half
Company expects second half costs to be broadly in line with first half
Quilter expects UK macroeconomic environment to remain stable but notes potential budget-related uncertainty
Result Drivers
STRONG NET INFLOWS - Co attributed 32% yr/yr increase in core net inflows to positive macro conditions, investor confidence and improved distribution strategies
HIGHER MANAGEMENT FEE REVENUE - Growth in adjusted profit driven by higher net management fees from increased average AuMA
INCREASED OPERATING EXPENSES - Operating expenses rose 13% due to planned investment in technology, data capabilities and brand development
Company press release: ID:nRSF4800Pa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Adjusted Pretax Profit |
| GBP 112 mln |
|
H1 Operating Margin |
| 30.00% |
|
H1 Pretax Profit |
| GBP 60 mln |
|
H1 ROE |
| 11.80% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the investment management & fund operators peer group is "buy"
Wall Street's median 12-month price target for Quilter PLC is GBp215.00, about 6.1% above its August 5 closing price of GBp202.60
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago
Reuters Recommended Reads
Aug 6 - AMP jumps to early-2019 high on strong profit growth, share buyback plan
Aug 5 - Victory Capital Q2 revenue rises 24%, beats estimates on higher AUM
Aug 5 - Brookfield Asset Management Q2 fee-related earnings rise 20%
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)