Given the well-publicised botched platform upgrades by some wealth management providers, Quilter (QLT) chief executive Paul Feeney has taken a “conservative” approach to setting a budget and deadline for its platform overhaul. Client migration onto the new platform – which will offer access to exchange traded funds (ETFs) and self-invested personal pensions (Sipps) – is due to commence in autumn, although Mr Feeney says he “won’t set an artificial deadline”. Associated costs will also come in at the top end of the £120m-£160m guided range.
Assets under management fell by 4 per cent, as £2.7bn in net inflows were offset by negative market movements of £7.8bn. Net client cash flow – the difference between money received from and returned to customers – came in at £4.7bn, down more than a third on the prior year. However, that represented 5 per cent of assets under management and administration, in line with the wealth manager’s medium-term target.
The operating margin was up one percentage point to 30 per cent, hitting management’s 2020 target and prompting it to revise up its goal. It now expects a two percentage point improvement both in 2020 and 2021, as it aims to identify cost savings throughout the business, including support functions.
Analysts at Numis expect adjusted pre-tax profits of £225m and EPS of 12.1p for 2019, from £233m and 12.3p last year.
| QUILTER (QLT) | ||||
| ORD PRICE: | 143p | MARKET VALUE: | £2.72bn | |
| TOUCH: | 142.6-143p | 12-MONTH HIGH: | 147p | LOW: 109p |
| DIVIDEND YIELD: | 2.3% | PE RATIO: | 5 | |
| NET ASSET VALUE: | 105p* | NET CASH: | £1.98bn | |
| Year to 31 Dec | Gross premiums (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017** | 148 | -5 | 8.6 | nil |
| 2018 | 148 | 5 | 26.6 | 3.3 |
| % change | - | - | +209 | - |
| Ex-div: | 25 Apr | |||
| Payment: | 20 May | |||
| *Includes intangible assets of £550m, or 29p a share | ||||
| **Figures prior to Old Mutual demerger | ||||
| ***Excludes special dividend of 12p a share, declared during the first half | ||||
