Quilter PLC
LSE:QLT
Quilter PLC
Quilter PLC’s journey in the financial landscape is one of transformation and strategic refinement. Originally part of the behemoth known as Old Mutual, Quilter emerged as a distinct entity following its separation in 2018. This departure was not just a structural shift but rather a focused attempt to hone in on providing integrated wealth management solutions. Nestled in the heart of the UK financial system, Quilter serves a diverse client base, offering personalized financial advice and wealth management services through a robust network of skilled professionals. The organization supports clients in navigating complex financial decisions, aiming to secure and build their financial future.
Quilter's revenue springs predominantly from its dual structure: Advice & Wealth Management and Wealth Platforms. Through Advice & Wealth Management, the company generates income from advisory fees, guiding clients through financial planning, investment choices, and retirement solutions. Meanwhile, the Wealth Platforms facilitate transactions and manage assets by offering an array of investment funds and products, all of which contribute to service and product fees. This alignment of advisory services with a comprehensive investment platform allows Quilter not only to streamline and optimize client finances but also to capture value at multiple stages of the wealth management process, crafting a cohesive financial ecosystem.
Quilter PLC’s journey in the financial landscape is one of transformation and strategic refinement. Originally part of the behemoth known as Old Mutual, Quilter emerged as a distinct entity following its separation in 2018. This departure was not just a structural shift but rather a focused attempt to hone in on providing integrated wealth management solutions. Nestled in the heart of the UK financial system, Quilter serves a diverse client base, offering personalized financial advice and wealth management services through a robust network of skilled professionals. The organization supports clients in navigating complex financial decisions, aiming to secure and build their financial future.
Quilter's revenue springs predominantly from its dual structure: Advice & Wealth Management and Wealth Platforms. Through Advice & Wealth Management, the company generates income from advisory fees, guiding clients through financial planning, investment choices, and retirement solutions. Meanwhile, the Wealth Platforms facilitate transactions and manage assets by offering an array of investment funds and products, all of which contribute to service and product fees. This alignment of advisory services with a comprehensive investment platform allows Quilter not only to streamline and optimize client finances but also to capture value at multiple stages of the wealth management process, crafting a cohesive financial ecosystem.
Profitability: Quilter delivered an adjusted profit of £134 million in 2022, down just 3% from 2021, despite a tough operating environment.
Margins: Operating margin was steady at 22%, with management targeting a recovery to 25% by 2025 and a longer-term goal of 30%.
Flows: Net flows declined to £1.8 billion, about half the previous year, reflecting market challenges and adviser consolidation.
Dividend: Total dividend increased 13% to 4.5p per share, supported by a strong balance sheet.
Cost Discipline: Costs decreased by £8 million to £472 million through optimization and simplification, despite inflation.
Guidance: Management expects only gradual improvement in net flows for 2023, with a group target just above 2% and a medium-term goal of 4-5% net flow growth as markets normalize.
Platform Strategy: Quilter is making pricing changes to its platform, anticipating a 1 basis point margin reduction over 18 months, but expects higher flows to offset this.
Interest Income: Interest receipts added about £23 million to income in 2022, with expectations of roughly double that in 2023 if rates remain stable.
