Quilter (LON:QLT) Issues Earnings Results

Quilter (LON:QLT) released 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 net margin of 1.28% and a return on equity of 8.35%.

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 Down 3.3%

Shares of LON:QLT traded down GBX 6.60 on Thursday, hitting GBX 196. 2,365,545 shares of the company traded hands, compared to its average volume of 24,288,008. Quilter has a 52 week low of GBX 150.80 and a 52 week high of GBX 209. The stock has a 50 day simple moving average of GBX 195.83 and a 200-day simple moving average of GBX 188.78. The company has a market cap of £2.66 billion, a PE ratio of 22.79, a PEG ratio of 2.50 and a beta of 0.82. The company has a quick ratio of 0.05, a current ratio of 3.92 and a debt-to-equity ratio of 18.49.

Insider Activity at Quilter

In other news, insider Andrew Ross purchased 27,100 shares of the business’s stock in a transaction dated Wednesday, May 20th. The shares were purchased at an average price of GBX 186 per share, for a total transaction of £50,406. 0.52% of the stock is currently owned by insiders.

Analyst Ratings Changes

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

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.