Quilter (LON:QLT) Issues Earnings Results

Quilter (LON:QLT) issued its quarterly earnings results on Thursday. The company reported GBX 3.30 earnings per share for the quarter, Digital Look Earnings reports. Quilter had a return on equity of 8.35% and a net margin of 1.28%.

Here are the key takeaways from Quilter’s conference call:

• Record core net flows reached £6 billion, up 32% year over year, while net flows rose to 9% of opening assets. Gross flows increased to £11.9 billion, reflecting continued momentum across the platform, solutions and high-net-worth businesses.
• Adjusted profit rose 12% to £112 million and EPS increased 13%, supported by 12% revenue growth and a 16% increase in net management fees. The company also reported a strong solvency position and has completed nearly 70% of its £100 million share buyback.
• The operating margin held at 30% despite inflation, lower interest income and elevated investment in technology, data, branding and distribution. Full-year costs are expected at £530 million–£540 million, likely toward the upper end, although management retains a long-term ambition to reach margins in the mid-30s.
• Quilter highlighted strong competitive positions, including an 18% share of platform gross new business and a 13% share of the MPS market. Management expects peer-leading net flows above its previous 45% ambition for the foreseeable future and anticipates second-half adjusted profit to be mid-single-digit percentage points above the first half, assuming steady markets.
• Management said advisor churn has not materially increased despite heightened competition, but acknowledged that platform pricing remains competitive and client-asset tiering continues to pressure revenue margins. Quilter is investing in AI and an adviser technology ecosystem to improve productivity and reduce servicing costs, while noting that the newer Quilter Invest proposition is a long-term, early-stage opportunity.

Quilter Stock Performance

LON:QLT traded down GBX 6.60 during midday trading on Thursday, hitting GBX 196. The company’s stock had a trading volume of 2,365,545 shares, compared to its average volume of 24,288,008. Quilter has a fifty-two week low of GBX 150.80 and a fifty-two week high of GBX 209. The company has a debt-to-equity ratio of 18.49, a current ratio of 3.92 and a quick ratio of 0.05. The firm has a market cap of £2.66 billion, a P/E ratio of 22.79, a P/E/G ratio of 2.50 and a beta of 0.82. The firm’s 50 day moving average is GBX 195.83 and its 200-day moving average is GBX 188.78.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. Jefferies Financial Group reaffirmed a “buy” rating and issued a GBX 220 price objective on shares of Quilter in a research report on Wednesday, April 15th. JPMorgan Chase & Co. cut their price target on shares of Quilter from GBX 212 to GBX 206 and set an “overweight” rating on the stock in a research note on Tuesday, April 21st. Berenberg Bank raised their price target on shares of Quilter from GBX 190 to GBX 195 and gave the stock a “neutral” rating in a report on Friday, April 24th. Citigroup lifted their price objective on shares of Quilter from GBX 195 to GBX 210 and gave the stock a “neutral” rating in a research note on Monday. Finally, Royal Bank Of Canada upped their target price on Quilter from GBX 220 to GBX 225 and gave the company an “outperform” rating in a research report on Thursday, May 28th. Five analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of GBX 205.86.

Insider Buying and Selling

In other Quilter news, insider Andrew Ross bought 27,100 shares of Quilter stock in a transaction that occurred on Wednesday, May 20th. The stock was purchased at an average price of GBX 186 per share, with a total value of £50,406. Insiders own 0.52% of the company’s stock.

About Quilter

Quilter is a leading UK-focused full-service wealth manager, providing advice-led investment solutions and investment platform services to over 500,000 clients.

Its purpose is to create brighter financial futures for every generation.

Quilter strives to do this through supporting long-term advice-based relationships, delivering good investment management performance while maintaining consistently high-quality customer service.

It has leading positions in one of the world’s largest wealth markets, and its multi-channel distribution, award-winning platform and investment solutions are delivering attractive growth.