Quilter plc

Quilter reported revenue of GBP 379 million, up 12%, driven by 16% growth in net management fees and 6% growth in other revenue, partly offset by lower interest income on shareholder capital. Adjusted profit rose 12% to GBP 112 million, adjusted diluted EPS increased 13% to 6.1p, and the operating margin was stable at 30%; costs increased 13% to GBP 267 million. Core net flows were GBP 6 billion, up 32% versus 2025, gross flows were GBP 11.9 billion, and net inflows were 9% of opening assets, up 1 percentage point year on year. The company said full-year costs are expected to be between GBP 530 million and GBP 540 million, likely toward the higher end if market-sensitive revenues stay at current levels, and second-half adjusted profit is expected to be around a mid-single-digit percentage point above first-half levels assuming steady markets. The interim dividend was set at 2.1p per share, 1/3 of last year’s total dividend and 5% above the 2025 interim dividend; the company had completed over GBP 68 million of the GBP 100 million buyback as of July 31.

Steven Levin emphasized that Quilter’s first-half momentum reflects strategic gains rather than a one-off, pointing to market-leading flow performance across its platform, solutions, and Quilter Cheviot businesses. He repeatedly framed the business as a leader in a consolidating market where scale matters, saying the company is taking about 50% of total industry net flows and expects that momentum to remain sustainable. He also highlighted technology and AI as longer-term growth and efficiency levers, saying the firm is rolling out end-to-end adviser tools over the next 12 months and believes these investments can ultimately support mid-30s operating margins.

Mark Satchel said the quarter’s financials were strong and balanced: revenue up 12% to GBP 379 million, adjusted profit up 12% to GBP 112 million, and costs up 13% to GBP 267 million as the company invested in growth and absorbed inflation. He said the balance sheet remains in very good shape, with a strong solvency position and around GBP 360 million of cash available before the interim dividend and completion of the GBP 100 million buyback program. He also said the company remains comfortable with full-year cost guidance of GBP 530 million to GBP 540 million, with the actual result likely toward the upper end if market-sensitive revenues hold up, while the longer-term inflation-plus-a-few-points cost framework and mid-30s margin ambition remain unchanged.

Analysts focused on adviser competition, platform pricing, MPS fee pressure, client cash economics, Targeted Support, adviser productivity, and the drop in Quilter Cheviot RFPs. Management said adviser churn has not changed materially and was still around 10% a year including retirements and moves, while the higher staff-based costs largely reflected adviser recruitment and investment rather than a breakdown in competition. On client cash, management said any changes being reviewed in light of FCA consultation are not expected to have a material financial impact and are already included in guidance. On the QC RFP decline, management said the reduction mainly reflected a productivity review that led to 12 advisers leaving, and they do not expect a negative revenue impact. For Targeted Support, management said Quilter’s differentiated angle is an adviser-partner model that lets advisers refer smaller clients into Quilter Invest while keeping sight of the relationship.