3rd Nov 2021 09:48
(Alliance News) - Quilter PLC on Wednesday set out new growth targets, a fresh dividend policy, and reported an improved third quarter.
In addition, it also updated on plans to return cash to shareholders following the sale of its Quilter International unit.
The London-based wealth manager said assets under management and administration stood at GBP108.5 billion at the end of September, rising 18% from GBP91.7 billion a year earlier. Net flows jumped to GBP1.00 billion from GBP100 million a year earlier.
"I am delighted with the significant improvement in our third quarter net flows which were up ten-fold," Chief Executive Officer Paul Feeney said.
Quilter will host a Capital Markets Day on Wednesday, giving the company a chance to set out a range of targets to investors and analysts.
Quilter affirmed its annual net flow growth target of 6% or higher from 2022 onwards. It also eyes an operating margin of at least 25% by 2023 and 30% by 2025.
"The group will provide an updated cost target, with full-year continuing costs for the year to December 2021 now expected to be less than GBP500 million," Quilter said.
On expenses, it also plans a "simplification initiative", trimming operating costs by around GBP45 million by the end of 2024 on a run-rate basis.
By delivering on these targets, Quilter expects its 2025 adjusted profit to be at least double what it achieved in 2020, on a continuing business basis. Adjusted pretax profit in 2020 amounted to GBP168 million, while adjusted post-tax profit was GBP152 million.
Finally, on payouts, Quilter set out a revised dividend policy. It set a payout range of between 50% and 70% of post-tax, post-interest adjusted profit, raised from 40% to 60% previously.
Back in June, Quilter shareholders approved the sale of its Quilter International arm to Utmost Group Ltd for around GBP480 million.
It plans to return GBP350 million to shareholders, with GBP90 million going towards its simplification programme.
Quilter explained GBP25 million will be handed to shareholders in the form of a dividend, from a pro rata contribution of Quilter International to the company 2021 earnings.
In addition, GBP325 million will be returned through either a special dividend or through an issue and redemption of B shares.
Quilter shares were up 1.3% at 158.88 pence each in London on Wednesday morning. The stock was 0.9% higher at ZAR33.34 in Johannesburg.
By Eric Cunha; [email protected]
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